Devil's advocate here... the higher than average profit margins have resulted at a time when the cost of capital is much higher. The market has seen a huge move

Devil's advocate here... the higher than average profit margins have resulted at a time when the cost of capital is much higher. The market has seen a huge move away from risky assets, into dull stuff like bonds and non-productive assets like gold (and, go on, bitcoin). Hence, the required return in order for companies to access funding has been much, much higher, forcing them to aim for higher than normal profit margins. So, really, they are justing paying back their higher costs of borrowing. (equity is a form of borrowing, in a sense) Now, why is the cost of capital so bloody high with TARP and QE and all that quatsch? Answer: Because banks are cs and investors are short-termist r*ards.