It’s a hope based recovery, I mean the hope is strong, not recovery
By Daniel at 23 December, 2009, 9:25 pm
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I think we are in a hope based recovery. Wall street in general make their money from trades and trading. Many on the street and in government have great interest in keeping the stock market up.
Some feel they have little choice but to support it or sink into non-existence. New moneys need to be attracted into the market or the traders within the system can not continue in such numbers. I truly believe they think new money will eventually come in thus invigorating their financial positions. That will not happen if the market again crashes. So, there is a massive effort to hold the market up until enough outside monies come in to support the system. Will it work? Not as well as in the past for two reasons:
First many have seen what can happen to their wealth. Many have invested much wealth and lost large amounts. They will not venture into such as easily.
Second, the next generation have an extreme difference in income levels. There are the well paid such as athletes and those who are just trying to pay back student loans. The well paid will hire expert money managers who can not afford to lose too much wealth and most of the rest will try just to make it through to the next month.
The IRA and retirement boom caused many to jump into the markets. But that source is now static or falling because of fewer dollars are going into such and more dollars are being withdrawn for retirement purposes. The retirement investment boom of the eighties and nineties has run its course. There will not be as much of that kind of money going into the market.
In the economy of the Upper Class which consists of the US Regime, its friends, family and courtiers, it is a boom.
In the economy of the Lower Class which consists of the bribed , the ignorant, the sullen and the brutal —-the shock troops and prison guards that are the retainers of the Upper Class- –it is stagnation.
In the economy of the Middle Class, it is a depression.
No doubt, the denizens of WashDc, Wall St and Big Media can aggregate the tricameral economy and conjure up a Statistical Recovery that resides only in their fraudulent “data” and dishonest “models”.
- socrateaz
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