The "financialization" of the United States economy over the last 30 years has brought us to a point where the government must intervene in equity/bond/currency markets. Jobs, tax revenue, pension plans, consumer spending all depend on a stock market delivering >8% per annum. The performance of US financial markets used to reflect the performance of US economy, today the US economy's performance reflects the performance of US financial markets. We desperately need a reset, unfortunately it will cause a tremendous level of pain for many Americans, and therefore we continue to kick the can down the road for another day rather than face this unpleasant reality.
We have been financializing since the invention of indirect exchange with money and money substitutes.. I don't believe any more fraud would happen. People would just be more prudent and not wrap their entire future in some pension fund manager... Yes the current system is dependent on Government Intervention...this isn't a good thing..
I never watch CNN or Fox News, and I am an educated man with a keen interest in markets for 35+ years. You are peddling delusional over done theories and anyone who doesn't buy in you think is stupid. So what. I can't see any of this helping you make intelligent investments or trades since spring 2009.
The reset will happen sometime in the next 1.5 years when confidence is all but lost in the central bankers ability to continue feeding the bloated pig. The lows from 2009 will be tested and most will lose a shit ton again. But the world will be fine and we will recover. This time around the pace will be slower and highs we see now will be looked at like the internet bubble highs. Buckle up cause it ain't going to be pretty.
How is the current level not out of control??? It reached 106% at the end of 2016. We are #3 in the world next to Japan and Italy. We know where those 2 economies stand. Deleverage or grow. Hiking taxes so the government can spend even more ain't going to cut mustard. It will make things worse. Remember, consumer debt levels are higher than they were in 2008...about $13 tril now. My opinion again, we should have taken our medicine during the great recession and let things reset but the feds are like kids in a candy store over and over.
You mean Keynesian debt cycle. Keynes advocated zero interest 50 years ago. He'd be thrilled to see that it became "reality". Greenspan and Bernanke pretended but are cut from the same cloth as Yellen, which is print and inflate rinse repeat allowing the federal gubmint to spend, spend, spend pushing off the repercussions till .... they can't no more.