The stock market IS the economy (companies, interest, money, financial)
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
We are not in a depression nor recession unless the stock market is low. Is what we are in now even a recession? I hear few calling it that. Supposedly we are only in a pause of the best economy ever according to many. Whether this is denial or not I don't know.
Bailouts have been heavily weighed toward interests with lots of market exposure. Therefore those in power fear a market drop more than any conceivable level of unemployment, business closures etc, etc. Again, if the markets are fine, everything is fine.
The markets, and thus the economy, does not care about the "little people" who have little to no exposure to the makrkets. We could have 30-40% unemployment or those people could cease to exist and it wouldn't matter. Perhaps the markets would even go up.
A real depression happens only when or if the market crashes. That would actually affect the people who matter. All the airport workers, musicians, waiters, etc... that are laid off don't matter. Facebook's engineers can work from home. They matter, as well as those like them. Everyone else doesn't.
This pandemic economy has been a master class of who is economically important and who is not. Hint: most of us and our little pissant jobs are not.
*I am speaking in extreme and inflammatory terms on purpose.
Last edited by redguard57; 07-02-2020 at 10:45 PM..
right now the market is selling tickets for the 2021 and beyond show .........
markets are already pre selling seats at what many investors call sale prices based on future 2021 earnings .
this year is no longer for sale . they sold out in march for the 2020 show , unless they find a few empty seats available from covid holders who won't be attending .
Last edited by mathjak107; 07-03-2020 at 04:30 AM..
The markets, and thus the economy, does not care about the "little people" who have little to no exposure to the makrkets. We could have 30-40% unemployment or those people could cease to exist and it wouldn't matter. Perhaps the markets would even go up.
30-40% unemployment affects consumer spending, which (eventually) effects the financial outlook of companies, which affects the stock market.
right now the market is selling tickets for the 2021 and beyond show .........
markets are already pre selling seats at what many investors call sale prices based on future 2021 earnings .
this year is no longer for sale . they sold out in march for the 2020 show , unless they find a few empty seats available from covid holders who won't be attending .
For the win. Currently the stock markets are very, very forward looking in the main. Further, on balance earnings and other other relevant metrics have been far less horrible than most would have expected. The rub is enough horrible CV-19 news and market focus will be on today and tomorrow.
30-40% unemployment affects consumer spending, which (eventually) effects the financial outlook of companies, which affects the stock market.
Good point. However, and contrary to a key tenet of redguard57's thesis huge money and other subsidy has been directed at the traditional working classes in efforts to backfill consumer spending to a degree. PCE was down Feb. 0%, March -6.6%, April -12.8%, May +8.2% (current dollars). That's a bad run but it's not....The End of Days as so many predicted.
I know the crybabies don't want to hear this but so far governmental and Federal Reserve actions in response to CV-19 seem to have worked quite well.
We are not in a depression nor recession unless the stock market is low. Is what we are in now even a recession? I hear few calling it that. Supposedly we are only in a pause of the best economy ever according to many. Whether this is denial or not I don't know.
Bailouts have been heavily weighed toward interests with lots of market exposure. Therefore those in power fear a market drop more than any conceivable level of unemployment, business closures etc, etc. Again, if the markets are fine, everything is fine.
The markets, and thus the economy, does not care about the "little people" who have little to no exposure to the makrkets. We could have 30-40% unemployment or those people could cease to exist and it wouldn't matter. Perhaps the markets would even go up.
A real depression happens only when or if the market crashes. That would actually affect the people who matter. All the airport workers, musicians, waiters, etc... that are laid off don't matter. Facebook's engineers can work from home. They matter, as well as those like them. Everyone else doesn't.
This pandemic economy has been a master class of who is economically important and who is not. Hint: most of us and our little pissant jobs are not.
*I am speaking in extreme and inflammatory terms on purpose.
The stock markets are part of an economy. The economy is now, the markets can look forward. So the economy might be in the shtters right now, but the markets are looking forward with optimism. And the Fed is a large part of that optimism.
The stock markets are part of an economy. The economy is now, the markets can look forward. So the economy might be in the shtters right now, but the markets are looking forward with optimism. And the Fed is a large part of that optimism.
In my opinion you can not equate main st and Wall Street ...we see different things being different ways at two different points in time .....
Markets have their best gains while Main Street still looks bleak as can be—ALWAYS
All the biggest drops come when markets are making new highs and the economy is humming
The stock markets are part of an economy. The economy is now, the markets can look forward. So the economy might be in the shtters right now, but the markets are looking forward with optimism. And the Fed is a large part of that optimism.
What indications are there that things will be better in 2021? Destroyed industries that have to re-build from scratch will be YEARS out from profitability.
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
