Every now and then I will get an anonymous poster (anonymous posting has now been disabled) that would crack me on the side of the head about Obama by bringing up the rise in the stock market to show me how great he is doing as a president. Yes, there are still forty something percent of people who still think of him as God or Jim Jones. They would say, well if Obama is really as bad as you say, "Look at the stock market." Of course these diehards would qualify that with the word "stupid."
One of today’s most common economic fallacies is that the soaring stock market is evidence of economic recovery. Nothing could be further from the truth.
"Stocks have almost tripled since the 2008 collapse, but that stock growth stems from Federal Reserve money printing (inflation) and near zero interest rates. The Fed’s balance sheet has grown more than fourfold since 2008 — to $4.3 trillion — and was used to prop up the “too big to fails.” That money had to go somewhere."
Read more... on the Immortality of Paper Money
No comments:
Post a Comment