Ezra Klein, on the Ed Show, gave a very good (albeit sad) explanation of WHY the Dow hit a record high this week. He explained that when you combine the fact that the Fed has pumped trillions into the economy, while keeping interest rates low – while suffering from massive unemployment that allows employers to pay workers less than market value – all while having these US companies making their products overseas for cheaper labor…what we are creating is an even wider gap between the fact that the CEO’s and the major corporations are making MASSIVE PROFITS (thus a higher Dow) while the American worker is still unemployed or still struggling to survive on paychecks that are worth almost 40% less than they were 10 years ago.
Something tells me that the entire Occupy Movement of ‘let’s fix everything’ was just a warm up of things to come, if we’re going say ‘Hooray!’ when a number shows us that those who have put this country in a financial mess – are actually making MORE money, while the rest of us wonder when things will get better.
It’s almost like the peasants cheering that the king bought a new crown. How long are we going to remain this stupid? Just curious.