CHART OF THE DAY: The Link Between Corporate Profits And Investment Is Dead

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What are companies doing with all their cash. Not investing.

This chart clearly demonstrates what a lot of people have been complaining about: that companies are spending money on buybacks and mergers and not anything that will create new business or jobs.

Specifically, as this chart form the New America Foundation equipment and software spending seem pretty delinked from profit.

chart of the day, corporate profits vs investment in equipment and software, oct 2010

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