Tuesday, May 8, 2012

risks with a payoff to wagelings are scarce on ther ground these days

 what helps wagelings live better ?

one thing  would be domestic investment in plant and equipment

gross and net

of course even reinvesting net  cash flow in  plant soft ware and equipment is a risk

you could just hold it in cash and securities or buy back some of  your own equity

but
read this bit of bizz wizz hypo-mojo from the middle of the recent
contraction trench  ie  bitter end of 2009

" In 2006, gross private domestic investment reached its most recent peak...
                                  17.4 percent of GDP.

After remaining almost at this level in 2007, this measure of investment fell
 during each of the next two years to
                                     11.3 percent of GDP   "

                                  17.4 % => 11.3% 

                                        doink !!!

but hold your water ....gus...

behold "The ... capital consumption allowance"

( an estimate of the market replacement cost  for
                       wear and tear and obsolescence
                                                           of the existing capital stock.)

 In recent years, the private capital consumption allowance
 has ranged from  11%  to 12%" of GDP

get it ???

at  11.3 % of gdp groos private invesment
                                    we're near zero net investment in  '09  !!!

"...., net private domestic investment  (NPDI)
                                   plunged by 94 percent from its 2006 peak! ....

yup
 NPDI

  "...did not simply fall during the recession; it virtually disappeared."

come pinch time

we wagelings
didn't get  a lot of our kinda net added risk taking
out of the job creators ... eh ?

and yet the pay off  for baring risk and taking rewards were super !!!