"The class divide
The S&P 500 - an index of 500 large US companies - has finally, after a four year rally, recouped all of its losses from the 2008 global financial crisis.
The S&P 500 became the last major US index to hit a new high. The Dow Jones Industrial average has already climbed past its previous high.
The average net worth of the 400 wealthiest Americans, classified as the super rich, rose to an all-time record of $4.2 billion, up more than 13 percent from a year ago. Collectively, this group's net worth, currently at $1.7 trillion, is the equivalent of one-eighth of the entire U.S. economy.
- The top one percent of the American population controls 42 percent of all financial wealth in the country.
- The top 20 percent control roughly 90 percent of all stock ownership and financial wealth.
- The bottom 80 percent of Americans control less than 10 percent of all stocks owned.
- The bottom 80 percent of Americans hold roughly 5 to 8 percent of all financial wealth (non-housing related).
The US Federal Reserve is pumping $85 billion a month in virtually free money into the financial system, fueling the stock market boom.This is more money in a month than the $76.6 billion the federal government spent all of last year to provide SNAP benefits to 47.8 million impoverished Americans." The two sides of the US economic "recovery", wsws.org
Income inequality is the highest it's been since World War II."
What is the definition of stupid? Continuing to do the same thing expecting a different result?
The "WEALTH EFFECT" is like TRICKLE DOWN economics, but in this case, it isn't trickling down.
The Federal Reserve is working from an untried playbook, making this up as it goes. And they are in now $2.5 TRILLION of QE and adding $85B a month, but my friends it is going into the stock market and other RISKY assets, so that is the reason we are not seeing and feeling a greater effect int he real world.
I don't think they are bad people, but I do think they are closed minded and a few people are making decisions that effect 10's of millions....and they may be wrong!
The avg guy on street does not own stocks or owns not enough to FEEL JIGGY, to CASH OUT and SPEND, which spurs economy. Just look at recent CONSUMER SENTIMENT POLLS that show the worst recovery from recession since these records were held.
More people getting government assistance then before crisis. ALL I am saying folks is SOMETHING IS WRONG, we are misallocating resources AGAIN, which are benefiting a very few people at expense of the many.
Now with 0% return on savings, people have been FORCED into the stock market helping it reach new all time highs....if we reach another EVERYONE IS ON THE SHIP MOMENTS.....getting off will bemore like being thrown overboard...that I believe is coming.