The DOW has been on a general upward course since this recession hit. It is now about 50% higher than just before the recession began. The Media in general seems to think the current fairly high DOW number represents a healthy economy. They clearly don't get it.
The stock market represents what investors are doing. Those people are making money off rises and dips in the market all the time. In general they've done very, VERY well for the past 3 years while most average Americans' finances and job situations are not good at all. Unemployment remains above 9%. Retired Amercians have lost huge amounts of retirement funds and net worth (much of which is tied up in their home which is now worth approximately 40% less than it was three years ago).
The stock market is NOT reality for us peons!!! What does or does not happen to the stock market as a consequence of our country's rating being lowered from AAA to AA+ doesn't matter to me much. What DOES matter is that our wonderful(?) leaders have decided to keep interest rates at historical lows for the NEXT 2 YEARS! That means that my investments will continue returning less than I need to live on.
Retired people tend to keep investments in secure things. Most of such secure investments depend heavily on the prime rate which we now hear will be stuck at historical lows. We did little to cause the recession but we're paying a big price in loss of income and loss of net worth. Our savings are significantly responsible for keeping this economy from going totally under and are now responsible for keeping it afloat. The thanks we get? Basically the proverbial middle finger.
Our leaders want people to borrow more (to spur the economy based on the insane reasoning that more(!) debt is the solution to our problem) so they're keeping the prime lending rate extra low. They're doing the exact wrong thing for everyone, especially for retirees.
To those in congress and the White House we say thanks for nothing!
No comments:
Post a Comment