by #duh⚠️BREAKING:*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 $WFC pic.twitter.com/ZRkfTTkSNF— Investing.com (@Investingcom) April 14, 2023 Ok let’s look at this from system perspective … total S&P 500 market cap is reported T and trailing earnings yield is reported 4.17%. T x 0.0417= .4T S&P500 total earnings…Let’s just look now at what the Fed is paying banks in IOR: 5% IOR on 3T reserves = 0B annual of USD reserve transfer to banks with no corresponding liability… accrues directly to capital/retained earnings…0B / 1.4T total earnings = 10.7% … so .. Fed is giving certain S&P500 components almost 11% of the total 500 TTM earnings as free munnie…AND hold up… this
Topics:
Mike Norman considers the following as important:
This could be interesting, too:
Lars Pålsson Syll writes Monte Carlo simulation explained (student stuff)
Mike Norman writes Corporate buybacks
Mike Norman writes Month end settlements
Angry Bear writes Biden finalizes rule opening up Obamacare to DACA recipients
#duh
⚠️BREAKING:
*JPMORGAN CHASE SHARES EXTEND GAINS PREMARKET AFTER Q1 RESULTS, LAST UP 6.5%
*WELLS FARGO STOCK UP 2.5% AFTER Q1 EARNINGS BEAThttps://t.co/PVjilxCOOw$JPM $WFC pic.twitter.com/ZRkfTTkSNF
— Investing.com (@Investingcom) April 14, 2023
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…
🤔