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Chart of the Week: Capacity Utilization
Posted By Barry Ritholtz On October 27, 2003 @ 12:00 pm In Finance | Comments Disabled
S&P 500 earnings (blue line) have been rising despite the continued decrease in capacity utilization (gold line).
Earnings vs. Capacity Utilization
Source: Chart of the Day 
This excess capacity is the hangover from the massive over-investment in tech and telecom during the 90s bubble.
Gains in Wages Expected to Give Economy a Lift 
The China bubble 
Quote of the Day:
“The world economy is volatile enough without a loose cannon at the U.S. Treasury.” -Paul Erdman 
Article printed from The Big Picture: http://www.ritholtz.com/blog
URL to article: http://www.ritholtz.com/blog/2003/10/chart-of-the-week-capacity-utilization/
URLs in this post:
 Chart of the Day: http://www.chartoftheday.com/20031022.htm
 Gains in Wages Expected to Give Economy a Lift: http://www.nytimes.com/2003/10/27/business/27WAGE.html
 Can U.S. growth last?: http://cbs.marketwatch.com/news/story.asp?guid=%7BD6FFA7F3%2D7750%2D4A4C%2D88AF%2D23704739724A%7D&siteid=mktw
 Despite Profit Improvements, U.S. Stocks May Underwhelm: http://online.wsj.com/article/0,,SB106616231766888800,00.html
 The end of the Oil Age: http://www.economist.com/opinion/displayStory.cfm?story_id=2155717
 The China bubble: http://money.cnn.com/2003/10/23/technology/techinvestor/lamonica/index.htm
 0 for 2 on Treasury chiefs: http://cbs.marketwatch.com/news/story.asp?guid=%7B53C9C182%2DFC6C%2D4198%2D9E24%2D162651E72989%7D&siteid=mktw
 Paul Erdman: http://cbs.marketwatch.com/news/story.asp?guid=%7B53C9C182%2DFC6C%2D4198%2D9E24%2D162651E72989%7D&siteid=mktw, CBSMarket Watch
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