Posted on 03/05/2013 11:12:53 AM PST by whitedog57
We are at another high for the S&P 500 index, thanks mostly to the Federal Reserve’s zero interest rate policy.
The last peak of the S&P 500 was on October 9, 2007 when it closed at 1565.15.
The U6 unemployment rate was 8.4%. Today it is 14.4%.
Q3 2007 Real GDP growth had risen 3.0%. Q4 Real GDP growth is at an anemic 0.126%.
People on food stamps (SNAP) has grown from 26.9 million in October 2007 to 47.69 million at the latest reading.
Gasoline prices? $2.75 in October 2007, but now they are $3.73 per gallon for regular.
Fed’s Balance Sheet? It has grown from $0.89 trillion to $3.01 trillion since October 2007.
Government debt? We went
from $9 trillion at the end of Q2 2007 to a staggering $16.43 trillion.
House prices? According to FNC 30 RPI index, house prices have dropped from near 190 to 137.64.
Homeownership rate? 68.4% at the end of Q3 2007 and it now stands at 65.4%.
The ten year Treasury rate? And 30 year mortgage rate? The 10 yr Treasury was 4.64% on 10/09/2007 and is now 1.89%. The 30 year fixed-rate for mortgages was 6.41% in October 2007 and is now 3.77%.
Despite a visibly worse economy, the S&P 500 stock market index is back to October 2007 levels. Will the Fed take its foot off the bubble machine? I don’t think so.
But watch out when Bernanke stops chewing!
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