Posted on 10/18/2021 2:03:42 PM PDT by SunkenCiv
...Even so, stocks have seen huge gains relative to wages. What then to make of the growth of the Dow? The more-than-fivefold gains for the tech-heavy Nasdaq? Is it a sign of an economic system badly tilted toward the wealthy? Proof that financial markets exist in an alternate universe of capitalism, ever expanding as the prospects for so many millions continue shrinking?
These days the politically fashionable solution is to ratchet up the corporate tax rate from the current rate of 21 percent to as high as 28 percent, raise the rate on long-term capital gains from 20 percent to as high as 39.6 percent and potentially tax some unrealized gains as well. But while the urge to penalize thriving companies and investments may be a justifiable reaction to the wage-stock market disjuncture, taxes will do little to address the systemic problems separating the haves from the have-nots.
(Excerpt) Read more at nytimes.com ...
Mr. Karabell is the founder of The Progress Network and the author, most recently, of “Inside Money: Brown Brothers Harriman and the American Way of Power.”
He could just buy an index fund and get on the train instead of bitching about it.
Too much is never enough for the left.
Ya think he’s sitting out the market? That would require working for a living.
$146.55
Stock market is basically a artificially fiscally induced government program via the financial “iron triangle” at this point. A lot of companies/”the man” have no business offering prices the way they are with obscene high P/E ratios (And yes, factoring in R&D too, which is still too damn high and artificially inflated to keep the “Boomer” retirement program humming along for now at least).
Its gonna go real high, you watch, ‘cause Joe’s building back better!
If the fair value of a stock drops by 10%, because of a bad economy, but the value of the dollar drops by 20%, because of the government printing press, do you suppose the price of the stock will go up, or down?
People who vote dem are possessed by demons.
You gotta point.
Maybe he’s just knockin’ the market cuz he’s got a big short position going...
How high?
I’ll go with 3,500,000,000,000 - after inflation, of course!
Most of the reason that the Dow is going up now is because it is riding along with inflation. Study the Jimmy Carter years. The Dow did pretty well then, too.
*People who vote dem are possessed by demons.*
Dems are into index funds also. So why do they vote against their own interests? It’s like the blacks and Jooz.
Just figure out what companies congress subsidizes and which they undermine and buy accordingly
Whut?
The market went up one per cent during Carter’s term
The Markets Can Remain Irrational Longer Than You Can Remain Solvent.
For many years now, the market has been divorced from what’s happening in the general economy.
When banks pay no interest, or you actually end up with less purchasing power because of the low bank rates, then, people will be seeking to put their money elsewhere, and the market seems to be the beneficiary of the orphaned money.
Now, with inflation running wild, why even think about putting your money in a bank. At least in the market, there is a chance of earnings or NOT LOSING money.
The market rising is no longer an indication of a good economy. NO matter who is president or leading things.
When interest rates fall, the effective yield of stocks falls via the stock price rise. Stocks with no yield rise based on comparative analysis of the company’s value. Since Reagan became POTUS, interest rates have shrunk, and have never gotten to the levels they reached during the Carter Disaster.
The Chinese prop up US gubmint spending by diverting some of that fat trade surplus into federal debt, which keeps the yuan’s value from creeping up against the USD and keeps US interest rates low.
This means we’ve got interest rates deregulated, but capital formation is largely not through banks, but relies on venture capitalists, and various investment pools (mutual funds, ETFs, pension funds, hedge funds).
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