5 ms·

When the rich get richer, and the poor don’t, one can expect that prices rise for things that rich people buy (stocks), but not for things that poor people buy

When the rich get richer, and the poor don’t, one can expect that prices rise for things that rich people buy (stocks), but not for things that poor people buy (food, gasoline, rent). Yet the latter are the kind of items used to measure inflation. Maybe stocks aren’t really getting over-valued, maybe it’s the dollar that’s getting de-valued. Quantitative Easing. What I am trying to say is that I’m not confident that a correction is imminent.

ncmncm 7y ago
I think we can be confident that the current administration will do everything in its power to detach the measuring instruments from the actual economy in order to present a rosy picture. The effect will be a much more resounding crash when the facts cannot be papered over anymore. So the only question is, how long can they be papered over? How long were they successfully papered over before the last blowup?
- afinlayson 7y ago
  "So the only question is, how long can they be papered over?" I know that one. Nov 4th 2020... Once they get re-elected, they don't care what happens... especially since Impeachment won't matter anymore and the 40% that love him don't care what he does. I hope everyone on here who can vote, does.
  - ncmncm 7y ago
    I guess you weren't paying attention in 2008 when the economy blew up six months before the election? They don't always succeed in dancing fast enough, especially when they have driven away all the grownups who understand how anything works, or care.
  - Fjolsvith 7y ago
    Divisive, nasty, flame-bait post not flagged because it is anti conservative.
    - tomhoward 7y ago
      Did you flag it?
      - deleted 7y ago
        [deleted]
- chii 7y ago
  > how long can they be papered over? until the administration changes. Or, until china becomes so potent a force that their purchasing power cannot be checked and no amount of papering over in the US works - thus leading to WW3
  - chongli 7y ago
    until china becomes so potent a force that their purchasing power cannot be checked That’s assuming China isn’t also papering over the cracks. I see no reason to believe that, given all the ghost towns full of crumbling high rises and the enormous amount of effort the CPC puts into their nationalistic propaganda.
    - ncmncm 7y ago
      Yes, no one expects China to exercise any scruples. But US and European administrations, and certain smaller countries, have been known to observe them, at times.
- turk73 7y ago
  Other than your own biases, what makes you think the current Adminstration has any greater or lesser interest in making the markets appear stable or rosy? I mean, didn't Bush and Obama both do this very thing? And Clinton before them? Seems like every political adminstration does it. Clinton kicked off the housing bubble when he signed the law that repealed Glass Steagall. Bush doubled down. Obama could have been a reformer when he took office, he could have said "no more QE" but he didn't do that--he doubled and then tripled down. If anyone is to blame here, it is Obama because of what I just said. There was a clear opportunity to reject Bush's policies and that didn't take place. Honestly, I don't expect a crash. If we didn't see one in 2008/9 then we aren't going to see one now, either. A correction? Sure, why not? But who cares? Are you retiring in 1-5 years? If you are, why is the money you want to live on invested in stocks and bonds?
ailideex 7y ago
> When the rich get richer, and the poor don’t Why? > one can expect that prices rise for things that rich people buy (stocks), but not for things that poor people buy (food, gasoline, rent). Is it bad if things that poor people buy don't increase in price? Also, these things are fundamentally different - I can sell a stock after I have held it for some time and used it to get the dividend - I cannot sell food, gasoline or rent after using it. And not just rich people hold stocks - maybe they are more likely to hold it directly but even in a country like South Africa where I'm from some of the poorest people benefit from gains in stock market through pension funds. > Maybe stocks aren’t really getting over-valued, maybe it’s the dollar that’s getting de-valued. One of the best measures for value of stock, PE ratio, is not even mentioned in the article - so I would take it with a grain of salt.

ncmncm 7y ago

I think we can be confident that the current administration will do everything in its power to detach the measuring instruments from the actual economy in order to present a rosy picture. The effect will be a much more resounding crash when the facts cannot be papered over anymore. So the only question is, how long can they be papered over? How long were they successfully papered over before the last blowup?

afinlayson 7y ago
"So the only question is, how long can they be papered over?" I know that one. Nov 4th 2020... Once they get re-elected, they don't care what happens... especially since Impeachment won't matter anymore and the 40% that love him don't care what he does. I hope everyone on here who can vote, does.
- ncmncm 7y ago
  I guess you weren't paying attention in 2008 when the economy blew up six months before the election? They don't always succeed in dancing fast enough, especially when they have driven away all the grownups who understand how anything works, or care.
- Fjolsvith 7y ago
  Divisive, nasty, flame-bait post not flagged because it is anti conservative.
  - tomhoward 7y ago
    Did you flag it?
    - deleted 7y ago
      [deleted]
chii 7y ago
> how long can they be papered over? until the administration changes. Or, until china becomes so potent a force that their purchasing power cannot be checked and no amount of papering over in the US works - thus leading to WW3
- chongli 7y ago
  until china becomes so potent a force that their purchasing power cannot be checked That’s assuming China isn’t also papering over the cracks. I see no reason to believe that, given all the ghost towns full of crumbling high rises and the enormous amount of effort the CPC puts into their nationalistic propaganda.
  - ncmncm 7y ago
    Yes, no one expects China to exercise any scruples. But US and European administrations, and certain smaller countries, have been known to observe them, at times.
turk73 7y ago
Other than your own biases, what makes you think the current Adminstration has any greater or lesser interest in making the markets appear stable or rosy? I mean, didn't Bush and Obama both do this very thing? And Clinton before them? Seems like every political adminstration does it. Clinton kicked off the housing bubble when he signed the law that repealed Glass Steagall. Bush doubled down. Obama could have been a reformer when he took office, he could have said "no more QE" but he didn't do that--he doubled and then tripled down. If anyone is to blame here, it is Obama because of what I just said. There was a clear opportunity to reject Bush's policies and that didn't take place. Honestly, I don't expect a crash. If we didn't see one in 2008/9 then we aren't going to see one now, either. A correction? Sure, why not? But who cares? Are you retiring in 1-5 years? If you are, why is the money you want to live on invested in stocks and bonds?

ailideex 7y ago

> When the rich get richer, and the poor don’t Why? > one can expect that prices rise for things that rich people buy (stocks), but not for things that poor people buy (food, gasoline, rent). Is it bad if things that poor people buy don't increase in price? Also, these things are fundamentally different - I can sell a stock after I have held it for some time and used it to get the dividend - I cannot sell food, gasoline or rent after using it. And not just rich people hold stocks - maybe they are more likely to hold it directly but even in a country like South Africa where I'm from some of the poorest people benefit from gains in stock market through pension funds. > Maybe stocks aren’t really getting over-valued, maybe it’s the dollar that’s getting de-valued. One of the best measures for value of stock, PE ratio, is not even mentioned in the article - so I would take it with a grain of salt.