|The DOW is at it's highest in 10 years. Something is|
There is always high hopes that economy will make a rebound . Looking at the DOW recently shows reported by the WSJ : The Dow Jones Industrial Average closed above 15000 for the first time Tuesday as stocks continue a historic four-year run that investors are finding increasingly irresistible. Well it's hard for me to believe that Wall Street is dong so well these days. Think about it , is MAIN STREET dong better? If Wall Street numbers climbed like this before only sink back . This is all because that there is much trading and buying a lucrative market that all together vary deceptive . I'll bet you that it will climb to 20,000 before 2016 , and go down crashing to it's 2002 level in some October surprise. The last time the Dow peaked, AIG (AIG), GM (GM), Honeywell (HON), Altria (MO) and Citigroup(C) were in it. They've since been replaced by Cisco (CSCO), Chevron (CVX), UnitedHealth (UNH), Travelers (TRV) and Bank of America (BAC).Consider this. When the Dow hit its now old record high back in October 2007, the economy was still in good shape -- although it was just a few months away from the beginning of the Great Recession. The unemployment rate in October 2007 was 4.7%. In January of this year, the unemployment rate was 7.9%.(Thanks to the wonderful FRED database at the St. Louis Federal Reserve for making it easy to look up this and other historical data.) The best-known stock-market average in the world is at an all-time high. Unfortunately, that matters less than it ever has.A new high for the Dow Jones Industrial Average is an important milestone on the road to recovery, no doubt. The stock index has more than doubled from its low in March 2009, making this one of the strongest bull markets in history. At the same time, regular people have hardly benefited. The job market has recovered only 5.5 million of the 8.7 million jobs lost during the recession, making this the worst labor-market recovery since World War II. With the job market weak, worker wages have stagnated. Inflation-adjusted average income is 8 percent lower than in 2007, when the Dow was at its previous high, notes Quartz's Matt Phillips. Nothing illustrates the disconnect between regular people and the stock market better than the chart above, showing how profits and stocks have skyrocketed together, leaving hourly earnings in the dust. What a real fine mess .How does the middle class worker regain any leverage in the labor market?Is it already too late for this generation to have a shot at the American Dream.The stock market hit record highs today and jobs are still being cut to improve profits.It would be nice if somebody just threw a bone to the vast majority of the struggling middle and lower classes.Its been over five years since this economic crisis started and has been exploited.when will we see something to be optimistic about.
NOTES AND COMMENTS:
With the DOW at 15,000 past today. It's hard sell that EVERYONE is doing WELL in a Predatory Economics:
Work in America has become so exploitive, many are working for free. The New York Times interviewed a few 20 somethings on what it's like to give your all for nothing in return.
“If I’m not at the office, I’m always on my BlackBerry,” said Casey McIntyre, 28, a book publicist in New York. “I never feel like I’m totally checked out of work.”
Ms. McIntyre is just one 20-something — a population historically exploitable as cheap labor — learning that long hours and low pay go hand in hand in the creative class. The recession has been no friend to entry-level positions, where hundreds of applicants vie for unpaid internships at which they are expected to be on call with iPhone in hand, tweeting for and representing their company at all hours.
“We need to hire a 22-22-22,” one new-media manager was overheard saying recently, meaning a 22-year-old willing to work 22-hour days for $22,000 a year.
Testosterone Pit reminds us the Dow high has more to do with quantitative easing thananything else. The real economy still sucks.The Fed’s relentless money-printing and asset-purchasing operations as primary impetus behind the new high. There is no longer any pretense that this has anything to do with fundamentals or the economy or with corporate health. Even the New York Times admits that the driver behind this new high is the confidence that the Fed will continue to pump $85 billion a month into the markets, ad infinitum, and if anything “very lumpy” shows up, it will print even more.Conversely, “everybody” knows something else: if that confidence ever sags.... We’ve seen the results. Twice. QE1 had a limit. When that limit approached, stocks swooned. QE2 had a limit, and when it approached, stocks swooned. So, QE3 doesn’t have a limit.Conversely, “everybody” knows something else: if that confidence ever sags.... We’ve seen the results. Twice. QE1 had a limit. When that limit approached, stocks swooned. QE2 had a limit, and when it approached, stocks swooned. So, QE3 doesn’t have a limit.