This paints a perfect picture of how great of a disconnect there is between reality and the dream world these markets are in....it shows what has happened in nearly 3 decades of how off the charts these numbers are...take a look and try to understand what the fed has done to create this wealth effect....Remember is 108 months since the fed has raised rates....108 MONTHS!!!! nearly a decade since they raised rates and guess what, it looks like its going to be quite sometime before they raise them, you would think with corporate earnings skyrocketing, unemployment near historical lows and a stock market that shows no signs of letting up that rates would at least be 3-4% but no, the fed is creating the biggest asset bubble in history right this second...the longer they keep rates at 0% the bigger the asset bubble the bigger the collapse and crisis....like I said many times, the next crisis is going to be called the Fed Crisis because they are the ones who have created it, there wont be escaping the next collapse because the fed will have lost every ounce of credibility they ever had..... Stockman: 'Warren Buffett Economy' Will Meet Day of Reckoning (Bill Pugliano/Getty Images) By David Stockman | Tuesday, 09 Jun 2015 04:55 PM During the 27 years after Alan Greenspan became Federal Reserve chairman in August 1987, the balance sheet of the central bank exploded from $200 billion to $4.5 trillion. Call it 23 times. Let’s see what else happened over that 27-year span. Well, according to Forbes, Warren Buffett’s net worth was $2.1 billion back in 1987 and it is now $73 billion. Call that 35 times. During those same years, the value of non-financial corporate equities rose from $2.6 trillion to $36.6 trillion. That’s on the hefty side, too — about 14 times. When we move to the underlying economy that purportedly gave rise to these fabulous gains, the multiplier isn't so generous. Nominal GDP rose from $5 trillion to $17.7 trillion during the same 27-year period. But that was only 3.5 times. Next we have wage and salary compensation, which rose from $2.5 trillion to $7.5 trillion in that period. Make that 3 times. Then comes the median nominal income of U.S. households. That measurement increased from $26,000 to $54,000 over the period. Call it 2 times. Digging deeper, we have the sum of aggregate labor hours supplied to the nonfarm economy. That metric of real work by real people rose from 185 billion hours to 235 billion hours during those same 27 years. Call it 1.27 times. CONTIUNED HERE http://www.newsmax.com/Finance/Stre...Fed-money/2015/06/09/id/649523/#ixzz3cftYfHcJ
It is the avocation of cretins at Fed to "quantify" values and distort reality by using their obsolete models. Whatever you've commented is a critical problem our system is experiencing and it's all due to artificial manipulation of interest rates (read: http://www.readoo.in/2015/04/how-interest-rates-rob-you-in-an-unseen-way/) AND monstrous monopolisation of "fiat" (read:http://www.readoo.in/2015/04/central-bankers-monstrous-policy-an-unseen-phenomenon/)