President Obama got it exactly right when he said that we couldn’t go back to an economy in which the banks captured 40% of corporate profits. We needed an economy built on a new foundation.
Well, financial profits are soaring — up a staggering 240% over last year. And have reached about 28% of all corporate profits.
Banks aren’t making this money by increasing lending to companies in the real economy. They are cleaning up borrowing 0% money from the Federal Reserve and using it to buy Treasuries that pay out much more. Nice work if you can get it.
Go to the following for the charts: