Dr. Heiner Flassbeck on The Real News Network, Higher Wages Will End Recession, March 3, 2013
FLASSBECK: Well, they do not understand that very much of the profits that they made in the last years was clearly based on government spending, on nothing else. The whole company sector can only benefit from deficit spending, so to say, of one sector, either of itself—when the company sector is investing and is taking on credit, that increases indeed the profits of the company sector. But if they don't do it (and they really don't do it at the moment of time) and if the government does nothing, the government is saving and the households are saving, and they don't get initial demand from other countries, then they're stuck, then they're sitting on the cash.
Profit Margins Are Plump: Understanding Why, and How They Will Change February 2013, by Srinivas Thiruvadanthai and Kevin Feltes, Levy Forcasting http://www.levyforecast.com/2013/02/profit-margins-are-plump-understanding-why-and-how-they-will-change/
--Lane