Do the potentially inflated stock exchanges concern you?

[mkpunk]

Originally Posted by tallrick

Only if it is caused by a free market. It is bad if it is caused by government regulations to exclude competition and money printing by the Fed to direct capital to unproductive assets. Look at most African countries, wealth inequality is the standard there and look where it got them.

I think that is the problem now. The Fed with quantitative easing (under which most of stock market's return happened under) put house money in. People don't feel bad gambling with house money so they all bought in and the craps table went on a heater. (And we all know, you never leave a table on a heater.) All well and good but not for people who cannot get to the casino where the shooter is on a heater.

[ContrarianEcon]

Originally Posted by Geo-Aggie

Does it concern anyone else how the US index funds have rebounded and exceeded their 2008 highs, while the rest of the world's index funds have stabilized somewhere between their 2008 highs & 2009 lows. Even in Canada (whose economy typically mirrors ours) they've yet to exceed their 2008 levels on the Toronto Exchange. Meanwhile, while better than 2008, our economy is not exactly thriving. Are we in for another bubble?

I'm by no means an economics expert and certainly open to correction as to why this is sensible, but it does concern me some..

(I do not post this in investing because I am more concerned about the broader implications for the U.S. national economy than I am for my portfolio.)

The Fed is printing money as fast as they can to re-inflate the past bubbles.