I remember a few years ago in zimbabwe how they had 1,000,000,000% GDP growth in one year! For the life of me, I cant understand why they collapsed with all that "growth".
the only thin qauntitative easing has benefited is the banks...the average joe in the street has not benefited one bit. the banks and investment banks like gold man sachs are making billions off the average joe. the average joe in the street has gotten wage cut with prices increases and falling wages. with inflation social security would be bankrupt since the gov't can't pay for increases in social security payments... communism have proven..gov't central command economcies doesn't work. why do you think China, Russia have abandon communist economics.. even cuba is downsizing it's useless gov't burearcracies and welfare state. money don't grow in trees. no profit, no production.
about 3-4 trillion of market value has been restored to average joes retirment accounts. that seems like a little bit more than nothing.
they lose in there cash and bonds and higher prices for food,gas etc....gain nothing..these long term investors cost average down...net gain is nothing in the 'long term'. if yo uare long term investor why the f#ck would you want to pay more for anything. oh yeah,,,paper gains...paper losses...only thing real is the dividend checks if any and the money they have deposited into this ponzi scheme market.. and 90% share dilution of citigroup...at $4/share citigroup is not be sold at 90% discount. the only thing average joe get is getting ripped off in wall street..there are no free gifts here. 90% of the volume is gambling(trading) volume..
2.9% growth = roughly $400 billion in US GDP growth for 2010 $1.5 trillion budget deficit ÷ $400 billion growth = $3.75 in debt for every $1 in growth (the real economy is shrinking while government spending as a percentage of GDP is increasing) We could generate 10% GDP growth next year if only we were willing and able run a $5.44 trillion budget deficit next year. Great News!
I agree - my 401K is actually up nearly double (!) since the Lehman induced lows - and while I have continued contributing to it, that is a small percentage of the overall increase. JJacksET4
+1. everyone is the fucking market king,if you measure your performance from the bottom.. however...IWM is almost all time high...unbelievable...or it's just adjusted to inflation?
Bob, But that's what FreeThinkings point is - other people are saying the average person has got nothing from QE, etc. - FreeThinking points out that's not exactly true. I don't claim to have done anything special to have had the gains since the lows. The point is that people ARE up from the lows, as opposed to still sitting on DOW 6000, SP 700, etc. Whether it is legit, sustainable, or what will still playout obviously. JJacksET4