#duh
⚠️BREAKING:
— Investing.com (@Investingcom) April 14, 2023
*JPMORGAN CHASE SHARES EXTEND GAINS PREMARKET AFTER Q1 RESULTS, LAST UP 6.5%
*WELLS FARGO STOCK UP 2.5% AFTER Q1 EARNINGS BEAThttps://t.co/PVjilxCOOw$JPM $WFC pic.twitter.com/ZRkfTTkSNF
Ok let’s look at this from system perspective … total S&P 500 market cap is reported $34T and trailing earnings yield is reported 4.17%.
$34T x 0.0417= $1.4T S&P500 total earnings…
Let’s just look now at what the Fed is paying banks in IOR: 5% IOR on 3T reserves = $150B annual of USD reserve transfer to banks with no corresponding liability… accrues directly to capital/retained earnings…
$150B / 1.4T total earnings = 10.7% …
so .. Fed is giving certain S&P500 components almost 11% of the total 500 TTM earnings as free munnie…
AND hold up… this does NOT include what other S&P500 industrial firms are getting directly from Treasury in interest on their retained earnings being saved in USTs and from Bill discounts…
Total S&P500 cash is nearly $3T so now 5% UST interest on that $3T USD savings is almost another $150B…
Government currently providing S&P firms with almost 20% of previous ZIRP era earnings as free munnie…
🤔
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