S&P 2,050!
Why not? Why not 3,000? 3,500? 4,000? Is there any number that will begin to sound ridiculous to top 1% traders, who are using the Fed’s Free Money to make even more money for themselves? It’s like the $50M balloon dog at Christies – what’s the difference to people who have, essentially, infinite amounts of money to spend?
The Forbes 400, for example, made $1Tn MORE between 2009 and 2012 – an average of $300Bn a year. Last year, they added on another $400Bn bringing their total INCOME up to an average of $1,000,000,000 PER YEAR per Billionaire. Compared to the average household income of the average US Citizen of $52,000, that is, pretty much, INFINITELY more (19,230 times more, to be exact).
Meanwhile, over the same period of rampant QE, the average income of the Median Household FELL 4%, from $54,000 to $52,000.
Of course, that should be obvious, as it takes $2,000 from 150M working people just to come up with $300Bn of the $400Bn the top 400 made last year. That’s how it works, folks – they take $2,000 from 150M people and the rich get richer and the poor (or the middle class) get poorer.
Yes, there is also some economic expansion – there has to be or where did the other $100Bn come from? No wonder record amounts of money (a mere $2Bn) were spent on the recent mid-term elections – in order to guarantee the top 1% that they’d get at least 2 more years of the same treatment.
And what do the top 0.0001% do with their money? Over $1Bn more pours in every day – they can’t possibly spend it all on balloon dogs and $5,000 hamburgers – they HAVE to invest some of it!
Real estate left a bad taste in people’s mouth very recently and, as noted by the chart below, there’s not enough homes in the US for all these Billionaires to buy. Gold and silver have lost their shine, oil is a bust, bonds aren’t paying any interest (also thanks to Fed meddling), so that makes equities the only game in town. Rich folks MUST put their money into the market – there’s literally nowhere else to put it.
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