So how can the Dow be flirting with 10,000 when consumers, who make up 70 percent of the economy, have had to cut way back on buying because they have no money? Jobs continue to disappear. One out of six Americans is either unemployed or underemployed. Full Story »
Posted by Kaizar Campwala - via Huffington Post (Featured)
This post get high points for insight, but lacks the kind of evidence, both present day and historical, that would make it more than an conjecture.
In other words, the Dow is up despite the biggest consumer retreat from the market since the Great Depression because of the very thing so many executives are complaining about, which is government’s expansion. And regardless of what you call it — Keynesianism, socialism, or just pragmatism — it’s doing wonders for business, especially big business and Wall Street. Consumer spending is falling back to 60 to 65 percent of the economy, as government spending expands to fill the gap. Read more at: http://www.huffingtonpost.com/robert-reich/why-the-dow-is-hitting-10_b_294682.html
