5 ms·

And we already had a massive crash last year caused by the pandemic.

by lexapro 5y ago

paulpauper 5y ago
for 2 months and then new highs not long after as if nothing happened
- ClumsyPilot 5y ago
  Daily reminder that stock market is not the economy. During the pandemic, stock market has sky rocketed while production, productivity, life expectancy and quality of life all fell off a cliff. Every measurable metric.
  - lexapro 5y ago
    Why would life expectancy or quality of life have an impact on the stock market? Literally the only thing that matters is future cash flows of public companies.
  - paulpauper 5y ago
    GDP made a V-shaped recovery. So did corporate profits, earnings, and unemployment rate. It is correlated. People are not just buying up stocks for no reason at all.
- lexapro 5y ago
  Yes, but it was still a crash. But for some reason the usual doomsayers who love to predict market crashes are not satisfied with it. They are still waiting for a repeat of 2008.
- what_is_orcas 5y ago
  This is one of those things that is true, kind of, but inaccurate. Generally, we don't have government moratoriums on eviction when the economy hits new highs, nor do we need massive government spending for things like unemployment benefits.
  - paulpauper 5y ago
    That is a good point, but I believe that those programs did not add much to the recovery. They helped but not as much as commonly assumed. Rather, look how much profits multinationals generated. I think it had more to do with increased productivity and efficiency. Much of the stimulus was spent on administrative stuff, paying down debts, or saved, as opposed to consumer spending.
    - what_is_orcas 5y ago
      I think I see the point you're making, but the stuff that you say that the stimulus money was spent on are the things that result from the US economic inequality: folks tend to save when they _need_ a safety net; folks tend to pay down debts _when they have debts_ (especially those that they didn't feel they could pay down without the stimulus, which are generally larger, such as medical or legal debts); etc. I own a box of band-aids, way more than enough to patch the cuts and scrapes I'm likely to experience in the near future. If Biden gave me a band-aid, I'd be very likely to hand it to someone else if they needed it, because I know I have my box. On the other hand, if I have no band-aids, and Biden was so generous, I'd probably either save it for my next (inevitable) cut or stick it straight onto one of my open wounds.

And we already had a massive crash last year caused by the pandemic.

paulpauper 5y ago

for 2 months and then new highs not long after as if nothing happened

ClumsyPilot 5y ago
Daily reminder that stock market is not the economy. During the pandemic, stock market has sky rocketed while production, productivity, life expectancy and quality of life all fell off a cliff. Every measurable metric.
- lexapro 5y ago
  Why would life expectancy or quality of life have an impact on the stock market? Literally the only thing that matters is future cash flows of public companies.
- paulpauper 5y ago
  GDP made a V-shaped recovery. So did corporate profits, earnings, and unemployment rate. It is correlated. People are not just buying up stocks for no reason at all.
lexapro 5y ago
Yes, but it was still a crash. But for some reason the usual doomsayers who love to predict market crashes are not satisfied with it. They are still waiting for a repeat of 2008.
what_is_orcas 5y ago
This is one of those things that is true, kind of, but inaccurate. Generally, we don't have government moratoriums on eviction when the economy hits new highs, nor do we need massive government spending for things like unemployment benefits.
- paulpauper 5y ago
  That is a good point, but I believe that those programs did not add much to the recovery. They helped but not as much as commonly assumed. Rather, look how much profits multinationals generated. I think it had more to do with increased productivity and efficiency. Much of the stimulus was spent on administrative stuff, paying down debts, or saved, as opposed to consumer spending.
  - what_is_orcas 5y ago
    I think I see the point you're making, but the stuff that you say that the stimulus money was spent on are the things that result from the US economic inequality: folks tend to save when they _need_ a safety net; folks tend to pay down debts _when they have debts_ (especially those that they didn't feel they could pay down without the stimulus, which are generally larger, such as medical or legal debts); etc. I own a box of band-aids, way more than enough to patch the cuts and scrapes I'm likely to experience in the near future. If Biden gave me a band-aid, I'd be very likely to hand it to someone else if they needed it, because I know I have my box. On the other hand, if I have no band-aids, and Biden was so generous, I'd probably either save it for my next (inevitable) cut or stick it straight onto one of my open wounds.