The S&P 500 is around the same level it was in 2000, yet gas prices are three times higher. Money markets, CDs and other "safe" investments are yielding near 0%. Unemployment has gotten steadily worse over the last 3-4 years. If you take out factor out all the manipulations re: workforce participation rates, the actual unemployment rate is close to 19%, not 8.1%.
Asset bubbles, in and of themselves, prove nothing about what's working.
You make a valid point. How I define working is not collapsing, which is a low bar above the grand canyon below. The post below yours is the point. Money comes from debt, the whole thing is a pyramid that one day collapses. There's a lot of people in this country who think they will survive a total liquidation of 100% of the economy for a reset. They are not prepared to lose 80% of their wealth and then have enough to buy assets low years later. Young people have the debt, the old people have cash, savings and investments. The little cash they have left would not be enough to rebuild an economy. All of the old people that came out in 2009 to town halls were just bent about the fact the Fed had not fully bailed out the stock market and were afraid they never would. New highs now, no complaints.
The S&P 500 is around the same level it was in 2000, yet gas prices are three times higher. Money markets, CDs and other "safe" investments are yielding near 0%. Unemployment has gotten steadily worse over the last 3-4 years. If you take out factor out all the manipulations re: workforce participation rates, the actual unemployment rate is close to 19%, not 8.1%.
Asset bubbles, in and of themselves, prove nothing about what's working.
Took the words out of my mouth. The S&P 500 might be in the vicinity of where it was at the peak, but as we've seen in recent years every rally in stocks is outpaced by the rally in commodities (creating a stagflationary environment). Nevermind health care costs, tuition costs, food prices, property taxes, etc, etc...
We've been thru this re-flationary scheme several times now. For the vast majority of the populus, gaming stocks higher does very little for the middle class when it increases their cost of living, while wages stagnate.
You make a valid point. How I define working is not collapsing, which is a low bar above the grand canyon below. The post below yours is the point. Money comes from debt, the whole thing is a pyramid that one day collapses. There's a lot of people in this country who think they will survive a total liquidation of 100% of the economy for a reset. They are not prepared to lose 80% of their wealth and then have enough to buy assets low years later. Young people have the debt, the old people have cash, savings and investments. The little cash they have left would not be enough to rebuild an economy. All of the old people that came out in 2009 to town halls were just bent about the fact the Fed had not fully bailed out the stock market and were afraid they never would. New highs now, no complaints.
You touch on the generational dynamic at work. The boomers want the higher stock prices at the cost of destroying whatever is left of the economy. If it boosts the value of their homes, they're good with that as well. The problem, as we continue to see in the data, is that goosing asset prices while the REAL economy stagnates does nothing for the "move up buyer", or in this case the upcoming generation of debt serfs. Saddled with non-dischargeable student debt and entry level jobs that aren't cutting it (if they can find any employment outside of a Starbucks barrista), they aren't going to be able to lift all of those boomer McMansions.
