Skip to comments.Dow 14K 2nd time around (Don't Get Out the Party Hats Yet)
Posted on 02/04/2013 6:34:09 AM PST by SeekAndFind
Wall Street put on the party hats as the Dow Jones industrial average closed over the 14,000 mark for the first time since October 2007, punctuating the longest winning streak for stocks since 2004.
But before you get giddy, its worth taking a closer look at what this means for the pocketbooks of most Americans. Despite a 5.5 percent increase in home values in 2012, according to the Case-Shiller index, the price of the average home in the US is precisely where it was a decade ago no appreciation in home equity at all. As for blue chip stocks, is it really worth celebrating a milestone that was already crossed more than five years ago? Happy days are here again it is probably not.
Yes, the Dow is back to levels first seen in July 2007. Thats a whole lot better than where we were in the spring of 2009, but by almost every other metric important to financial well-being, most Americans are in far worse shape than they were during that sultry summer.
Back then the unemployment rate was 4.7 percent, oil prices were 21 percent lower than they are today, and the biggest headlines coming out of Greece were about a record heat wave.
They were also halcyon days for the chairman of the Federal Reserve, Ben Bernanke. Testifying on Capitol Hill the first time the Dow hit 14K in July 2007, Bernanke needlessly fretted about inflation and assured Congress that subprime losses were in a manageable and now laughable range of $100 billion.
Since that ill-advised testimony, there have been five and a half years and trillions of dollars in money- printing in an attempt to correct Ol Bens shocking myopia.
And print he will continue to do.
(Excerpt) Read more at nypost.com ...
Dow 14000 means absolutely nothing, squared, for most Americans. Who's making less than $100K a year and has spare money for buying stocks?
If food stamps are what keeps the poor from rioting, the Fed throwing eighty billion dollars into the stock market every month for eternity is what keeps the one percent from rioting. That's all it is.
RE: what keeps the one percent from rioting
Why would they even bother to riot when like Eduardo Saverin and Tina Turner (and in France, Gerard Depardieu), then can simply take their money and LEAVE? (Unless of course, we finally pass a law DISALLOWING Americans from leaving...)
Indeed. That would be how the one percent “riot”. They just retire, leave, or move their businesses somewhere else, just like in Atlas Shrugged.
I often wonder why there is this fascination with numbers that have a lot of zeros. 13,967.32 is as important as 14,103.59.
Also, the number was not adjusted for inflation, so it’s invalid.
It means that the dollar doesn’t go as far as it used to on Wall Street.
Ah here we go — I couldn’t find this earlier when I posted.
“It is of extreme importance that the masses stay apathetic and obedient in the process. Hence food stamps for the poor and the stock market for the 1%.
“The stock market is like slop in a pigpen. It is a key instrument used to keep the 1% from getting antsy. Unlike the middle class (a group that isnt falling for any of the tricks), many of the 1% work on Wall Street or related industries and own stocks. Many of the people in the 1% are at least wealthy and connected enough to still cause serious problems for the oligarchs. They must be kept quiet as the coup that started in 2008 is brought to fruition. Then they will be left high and dry like everyone else. This is the role that the stock market is playing at the moment.
“So as the 1% sits around analyzing a casino, the poor collect food stamps and the middle class dies. Many in the 1% look upon the poor on food stamps with disdain, yet little do they realize they are on food stamps as well. Its called the stock market.”
Only reason market went to 14K was because Bernanke said they were going to print more money.
Dow is down 130 now oooops.
Obama recession on the march.