All tangible indications point to a worsening economy. Most things I've read state the ~10% unemployment is the norm for the next year. I've been reading for 4 months now how the economy is improving. It is, for rich people apparently. Drive around a commercial park and tell me how many "for lease" signs you see. There are a ton of them in East Portland, and many have vacancies. I know this, because I depend on it. Drive around a residential neighborhood and tell me how many "For Sale" signs you see. A "jobless recovery" is code for "the rich get richer". Geithner is doing a great job protecting his Goldman Sachs gang.
That may be - I don't have the energy to go try to find an example of a tangible indication that is improving - but I was merely reacting to your use of the unemployment rate as a measure of the overall economy. Same here, and I believe it. You depend on it? What, are you breaking into vacant buildings or something? It's funny that you are against the rich getting richer. It's rather incompatible with your political leanings. barfo
At this point, don't you ask yourself why the DJIA is up 53% since March when all other indicators go against this climb?
I think I've read enough of your posts here to know your political leanings. I have no idea about my own leanings though. I think I could be a fascist/socialist/nazi/terrorist. But I'm not sure. barfo
I think maxiep already gave the answer for that. interest rates are zero right now, so the stock market is the only place you can get a return. Thus money is flowing back into the market. barfo
What prediction, and what makes you think I was trying to refute it, whatever it was? I was just answering your question about why the market was up. barfo
I'm waiting to hear why you depend on commercial vacancies. That seems far more interesting than anything else in this thread. barfo
The stock market is more risky than treasury bills, but the safest stock investments pay significantly more return than those treasuries. If not treasuries, then the interest rate you get on savings account deposits (near zero).
Ahh, so the reason for the influx of money into stocks, causing the rise to 10,000, is not the strength of the stock market, but the weakness of alternative investments. How do you measure such strengths and weaknesses so that you can say that?
It's pretty easy. Near zero interest rates imply poor returns. The stock market at least offers the possibility of higher returns. barfo
This implies that you have any money left over from the last go-round, when near-zero interest rates looked great compared to below-zero stock returns. Anyway, once stocks return, I'm pulling mine all out and putting it into a nice little apartment building, where I can support myself being a slumlord while watching my investment grow. Goodbye equity asset class, hello real estate asset class. When you use this term "asset class" it makes you sound important.
If near-zero interest rates looked great, wouldn't you have put your money into safe investments that paid near zero interest? Seems like that wouldn't be a principal-losing bet. I'll just note I wasn't the one who used that term, so I don't feel obligated to defend it. barfo
