So Wall Street hit (yet) another record high yesterday. Should this even be news? If so, here are a few more distracting headlines we could be seeing in the future ...
"Baby cries after candy stolen."
"Charlie Sheen goes on drug fueled drinking binge ... Newest lady friend calls police."
"Sarah Palin confuses Liberty Bell with Taco Bell, orders Liberty Fritos."
Look, no one in the media should get excited about Wall Street setting another record. Why? Simply put, the successes of Wall Street today are not a product of solid market fundamentals, or a healthy economy.
The successes of Wall Street are entirely due to a long train of favorable legislation, the trillion dollar bailout programs orchestrated by the Treasury Department, and dirt cheap money from the Federal Reserve (misleadingly called "Quantitative Easing").
If we cut off the easy money and remove the bailout programs Wall Street and the economy are right back in the toilet, again.
Here's another reason why middle America should not be jumping for joy over the stock market yesterday. Well over 90% of what's in the stock market is owned by the richest 20% of the population. In effect, if you're cheering the stock rally - and unless you make at least $226,200 per year - you're probably clapping for people who aren't you.
At the end of the day, the leading headline from yesterday should read: "Richest Americans getting even richer because of taxpayer backed Federal Reserve policies and Treasury Department bailout programs ... Americans too stupid and apathetic to notice, or care."
Wall Street hitting new records is not news. What's making Wall Street hit new highs is the real story.
- Mark
UPDATE: Here's an older but still humorous review of the Fed and its cheap money policies, a.k.a. Quantitative Easing ...
"Baby cries after candy stolen."
"Charlie Sheen goes on drug fueled drinking binge ... Newest lady friend calls police."
"Sarah Palin confuses Liberty Bell with Taco Bell, orders Liberty Fritos."
Look, no one in the media should get excited about Wall Street setting another record. Why? Simply put, the successes of Wall Street today are not a product of solid market fundamentals, or a healthy economy.
The successes of Wall Street are entirely due to a long train of favorable legislation, the trillion dollar bailout programs orchestrated by the Treasury Department, and dirt cheap money from the Federal Reserve (misleadingly called "Quantitative Easing").
Here's another reason why middle America should not be jumping for joy over the stock market yesterday. Well over 90% of what's in the stock market is owned by the richest 20% of the population. In effect, if you're cheering the stock rally - and unless you make at least $226,200 per year - you're probably clapping for people who aren't you.
At the end of the day, the leading headline from yesterday should read: "Richest Americans getting even richer because of taxpayer backed Federal Reserve policies and Treasury Department bailout programs ... Americans too stupid and apathetic to notice, or care."
Wall Street hitting new records is not news. What's making Wall Street hit new highs is the real story.
- Mark
UPDATE: Here's an older but still humorous review of the Fed and its cheap money policies, a.k.a. Quantitative Easing ...
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