Saturday, March 9, 2013

Smoke/Mirrors



The Huffington Post, when it's not focusing on side-boob, sometimes does real reporting. This is an excellent article on the state of the economy, and the non-joyousness of the non-record-high Dow that was just achieved: 

... So what does it say about the Dow that it can hit this dizzying new height -- impressive by any measure in any era, post-crash or otherwise -- at a time when the overall global economic outlook is so dismal, and the domestic recovery is barely felt by the citizens who sacrificed their capital to save the world from calamity? It says that we should be gravely concerned. It says that we have a two-tiered economy, one where profits flow and another where risks lurk. It says that a lot of people are being left behind. And if October 2007 is any guide, it says that this display of prosperity may simply be an illusion.
The distribution of the stock market's largesse has been perhaps the most un-egalitarian aspect of American economics for years. A full 50 percent of all capital gains go not to the richest 1 percent of Americans, but to the richest 0.1 percent, according to The Washington Post
But the stock market's persistent upward climb since the spring of 2009 has revealed another massive disparity: the multinational corporate machinery that generates stock gains has become unmoored from the economic reality in which the vast majority of Americans live and die...

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Budget Goodness

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