I would think that the number of foreclosures, short sales, inflation index, and even the collection of taxes would show that we are in a serious financial mess. If people aren’t working, then the tax collection would have to be less and also funding for soc security would be less, or am I just having a bad dream ? Gas and food prices are up, as well as all commodities. The world is in turmoil, Wisconsin can’t get a bill passed....California still has Moonbeam....Why is the Stock Market Up ?
The world is in turmoil, Wisconsin cant get a bill passed....California still has Moonbeam....Why is the Stock Market Up ?
There is the real economy that is tracked by sales tax receipts, unemployment, real estate values, food stamp participation, etc. And then there is the imaginary economy tied to ponzi scheme financing and currently propped up by TARP, Obama Stimulus, QE1, QE2, .... on and on. The stock market is basically front running the ponzi scheme financing and could care less about the real economy. The minute the FED is forced to quit pumping the billions of dollars into the TBTF banks and Wall St. investors, the market will plummet like a rock.
Bottom line, no one beats an exponential growth curve of debt or need to constantly grow, which is what eventually collapses every ponzi scheme. They are stalling as long as possible, but they do not have the means to double down again.
I can't make any sense out of this, but NASDAQ 5000 and the housing boom didn't make sense to me either.