From the New York Times: https://www.nytimes.com/2018/02/13/business/economy/profits-economy.html Preview: " Stocks are too expensive. This is not a market forecast. I wouldn’t be particularly surprised if the Dow shrugged off its recent turbulence and continued its long upward thrust. What I contend is that if the American economy behaved in the way that most economists say market economies should, stocks would in all likelihood be cheaper. It is a grim proposition. Wall Street’s titans might welcome the fact that equity prices have grossly exceeded what a well-functioning, competitive economy should deliver. But for almost everybody else, it amounts to a disaster. From wage stagnation to the depressed investment rates that are holding back long-term economic growth, many of the fault lines running through the American economy can be traced back to the same root cause powering the rise of America’s overpriced stocks. Consider a few facts. The average financial wealth of American households — the market value of housing, stocks, bonds, business assets and the like, beyond their liabilities — has grown much faster than the nation’s income over the last half-century. This would not be weird were American households saving more and investing their savings in productive ventures. They are not. The personal savings rate has declined sharply. The ratio of the capital stock — the value of factories, machines and such — to the nation’s economic output has actually declined a little since the 1970s."....
worthless incoherent meandering rant. If you have any idea what the point is why not share! NYTimes: when Pol Pot took over: "tragedy for some, a better life for most".
That's inflation for you. (No point saving when it makes you poorer either. Spend it on assets. As they print more money... the price of your assets will rise accordingly. Not that it will make you any the richer). Stocks are assets. So they self adjust to inflation. If there is a credit shortage, stock prices will go up as companies seek to borrow outside of banks and offer better returns on your money. Which in turn raises their value to people. As interest rates rise to offer competitive returns to savers elsewhere, stock values will fall. That won't be any time soon. The demand for investments is constant. People have pensions they pay into.
I am of the opinion that we are about to see a shockingly positive paradigm shift in how we view where America and the whole world will be within two centuries. I am of the opinion that many people who now live in urban areas will be able to purchase land in rural areas within one hundred miles of big cities so that they can become more self sufficient and independent. If that prediction is true...... and I believe that it is.... then something positive is about to happen in terms of MMT or Federal Reserve policy. http://www.politicalforum.com/index...-fed-policy-pay-off-usa-national-debt.489825/ Matthew Fox Ph.D. has stated that ART..... may become one of the only possible avenues to employ the underemployed in an economy where technological advances make so many jobs obsolete ........ I am hopeful that a different way of looking at the artistic part of our economy could indeed play a huge role in a massive surge in productivity and wealth generation..... (G-d willing)! http://www.politicalforum.com/index...on-could-bring-world-out-of-recession.406872/ Artistic Hollywood style "Armageddon" could bring world out of recession?!
You'd need an economy run by Greens, where creativity is celebrated and alienation from big business shunned.
