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For most people reality is to have a secure job and income. The stock market doesn’t reflect that reality. The fact that it’s going up helps only a minority of

For most people reality is to have a secure job and income. The stock market doesn’t reflect that reality. The fact that it’s going up helps only a minority of the people.

lotsofpulp 6y ago
Yes, but a large enough segment of voters demand their asset prices keep rising, so that’s the reality of what the government will do. Also, the governments themselves are so deeply invested in rising asset prices that their budgets will blow up due to not having money for their defined benefit pension promises.
- Ididntdothis 6y ago
  Exactly. The market reflects the needs of the participants and gets manipulated that way. It’s not a fact based assessment of economic health.
  - lotsofpulp 6y ago
    Yes, the market is asset prices, so it's only going to reflect the reality of asset prices. Unfortunately, statistics such as how many children get nutritional food or the number of hours parents get to spend with their children or how many families get to eat dinner together aren't optimized for.
kansface 6y ago
Cities and States rely on the market for their pension funds. CA has ~$2 trillion in underfunded obligations ($83K per household)[1]. If the market doesn't magically make up the difference, the state will in the form of new taxes, budget cuts, and restructuring - or it can just go into a debt spiral like Illinois and default in 30 years. Universities rely on the market for their endowments ($500 billionish). When the market goes down, tuition goes up. ~60 million Americans have a 401K worth about $6 trillion. Many of those people are approaching retirement or have already retired. > The fact that it’s going up helps only a minority of the people. You may not be directly helped, but you will definitely feel the pain (eventually) when it goes down. 1. https://us.pensiontracker.org/stateSummary.php?idcode=06 https://us.pensiontracker.org/stateSummary.php?idcode=06
- deleted 6y ago
  [deleted]
- lotsofpulp 6y ago
  >You may not be directly helped, but you will definitely feel the pain (eventually) when it goes down. Inflating assets by printing dollars greatly hurts the lower socioeconomic classes by devaluing the only thing they have which is dollars.

For most people reality is to have a secure job and income. The stock market doesn’t reflect that reality. The fact that it’s going up helps only a minority of the people.

lotsofpulp 6y ago

Yes, but a large enough segment of voters demand their asset prices keep rising, so that’s the reality of what the government will do. Also, the governments themselves are so deeply invested in rising asset prices that their budgets will blow up due to not having money for their defined benefit pension promises.

Ididntdothis 6y ago
Exactly. The market reflects the needs of the participants and gets manipulated that way. It’s not a fact based assessment of economic health.
- lotsofpulp 6y ago
  Yes, the market is asset prices, so it's only going to reflect the reality of asset prices. Unfortunately, statistics such as how many children get nutritional food or the number of hours parents get to spend with their children or how many families get to eat dinner together aren't optimized for.

kansface 6y ago

Cities and States rely on the market for their pension funds. CA has ~$2 trillion in underfunded obligations ($83K per household)[1]. If the market doesn't magically make up the difference, the state will in the form of new taxes, budget cuts, and restructuring - or it can just go into a debt spiral like Illinois and default in 30 years. Universities rely on the market for their endowments ($500 billionish). When the market goes down, tuition goes up. ~60 million Americans have a 401K worth about $6 trillion. Many of those people are approaching retirement or have already retired. > The fact that it’s going up helps only a minority of the people. You may not be directly helped, but you will definitely feel the pain (eventually) when it goes down. 1. https://us.pensiontracker.org/stateSummary.php?idcode=06 https://us.pensiontracker.org/stateSummary.php?idcode=06

deleted 6y ago
[deleted]
lotsofpulp 6y ago
>You may not be directly helped, but you will definitely feel the pain (eventually) when it goes down. Inflating assets by printing dollars greatly hurts the lower socioeconomic classes by devaluing the only thing they have which is dollars.