Posted on 02/01/2013 3:13:45 PM PST by Mrs. Frogjerk
The next American wealth boom has officially begun.
It may not feel like it for many Americans. But with the Dow breaching 14,000, shareholders and investors have recovered the more than $8 trillion in wealth lost during the recession and attained levels of paper wealth they haven't seen since the Roaring Oughts.
The stock market has gone from wealth destroyer to the nation's largest manufacturer of new millionaires and billionaires. The market moves are creating a new virtuous cycle of confidence for the wealthy. A new survey from Spectrem Group shows that millionaire confidence in the economy hit the highest level in two years, led by their bullishness on the economy and corporate earnings.
The big question now is what the next Gilded Age will look like, who will benefit and how long the market-fueled prosperity will last.
(Excerpt) Read more at cnbc.com ...
The author is parroting the socialist meme.
The "virtuous cycle" is a statist concept, originating in Europe and adopted by Bernanke, postulating that government intervention in the economy can create a virtuous cycle of improved economic performance. In a speech given before he became Chairmen, Bernanke adopted the concept and suggested that the Fed could directly cause an increase in equity prices. It is widely speculated that Bernanke has been implementing this intervention in the equity markets through the New York Fed.
This Fed action is already a failure, merely causing equity prices to disconnect from the performance of the balance of the economy.
It makes sense that in the short term balance sheets will look better as companies layoff employees ahead of poor sales projections.
The DOW is p .8% since I moved my assets into Money market accou8nts to preserve the value vs. worrying about it growing/disappearing. I believe that if I leave it where it is, in 9 months or less, I’ll be much better off due to not losing my shirt (again) when it crashes.
Bump
The guys who trade stocks know as much about the economy as the players in the World Series of Poker. Proof? On the very day - in fact in response to - the latest “good news” jobs report including a Central Committee admission that there are 8.5 million few Americans working now than when the Kenyan came in, the DJ hits a record high. All they care about or know about is what the guy in the next chair is doing or not doing. I have a friend just like this. He makes money on the market by studying trends in trading. He actually told me he believes the economy is turning up! College grad as well!
Right now, a dollar is worth about .741 cents. I don’t know what it was in 2007.
The word not mentioned at all: inflation.
$10,000 today won't buy you what $10,000 bought earlier. When they say the market it back up to where it was before - it isn't.
Nothing to do with the QE4 I’m sure.
Nothing to do with the QE4 I’m sure.
Diana, from your posts, I conclude you are _far_ from simple.
But country girls will survive!
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