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.
Given the real economy, this stock market is nuts. This is the very definition of a bubble. Soaring stock market but no foundation to back it up. The Dow should have bottomed at around 6000 in the fall of 2020 and should probably be back up to around 11000-12000 range by now. We could be looking at a historic crash in the near future. All bubbles end eventually.
Look who has been buying our national debt. The Fed. And the Fed buys debt by creating money out of thin air. So that new money being handed out comes from thin air, not from anywhere else in the economy. It is new money. And if there is slack in the economy, resources or product or services just sitting unused or not sold, that new money can be used to buy the unsold product or put those resources to use. And that boosts the economy.
A lot of the money first goes to individuals, families and small businesses. Who then spend it right away into the economy, and then much of that trickles on up to the larger corps and the rich. Of course there is middle class participation. And no one is proposing giving everyone a million dollars. Heck, politically it is hard at a thousand or so.
Since population always increases, new money always has to be created. The Fed is supposed to create the right amount of new money.
Since 2008, and especially since 2020, enormous amounts of new dollars have been created. A lot of those dollars are soaked up by foreign investors. But if they had stayed in the US economic system, inflation would have resulted, and that means wealth would not increase.
Money and wealth are two separate things. Money is to wealth like a map is to a territory.
Give every American five thousand dollars, and prices of basic necessities will rise by about five thousand dollars. No one will be any better off than they were before.
Since population always increases, new money always has to be created. The Fed is supposed to create the right amount of new money.
Since 2008, and especially since 2020, enormous amounts of new dollars have been created. A lot of those dollars are soaked up by foreign investors. But if they had stayed in the US economic system, inflation would have resulted, and that means wealth would not increase.
Money and wealth are two separate things. Money is to wealth like a map is to a territory.
Give every American five thousand dollars, and prices of basic necessities will rise by about five thousand dollars. No one will be any better off than they were before.
Much if not most of that new money will trickle up, as most will spend it on necessities. And then some middle and upper class people will see gains or add to their investments and wealth. Typically over and above inflation long term with proper knowledge and/or guidance.
The only reason the stock market is going up is because of an endless supply of "stimulus" and cheap credit.
So your advise is always fight the Fed?
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.
