Industrial Insight

Stock market follies…. | March 7, 2013

The new market bubble

Enthusiasm for the Dow’s record high looks dangerously frothy given the context of the move.

By Anthony Mirhaydari

Two weeks ago
, I wrote about how six years of 0% interest rates and five iterations of bond buying (taking the monetary base from $800 billion to more than $3 trillion) has been an abject failure in its effort to help working class Americans rebuild. Sure, initial efforts in 2008 and 2009 ended the last bear market and quelled panic.

But the Fed’s insistence to keep pushing whenever the stock market catches a cold has resulted in record gas prices, a widening of the inequality between rich and poor, and undercut the ability of seniors to find low-risk investments that will protect them from the ravages of inflation.

And it’s resulted in the weakest, most underwhelming economic recovery of the modern era.

I care, and I believe most Americans care, more about a near 8% unemployment rate, $4 a gallon gasoline, persistent inflation in housing rents and health care costs, higher taxes, stagnant wages, and the fact that six million fewer Americans are working full-time vs. the 2007 high — even as the population has swelled by 12.3 million over that time.


Posted in Uncategorized

Leave a Comment »

Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )


Connecting to %s

About author

I'm the executive vice president for a steel casting trade association, the Steel Founders' Society of America. I've got a crazy wife, five crazy children, three crazy people that married into the family, and two crazy fun little grandsons.







%d bloggers like this: