DANGEROUS DIVERGENCE
The chart below would appear to be in conflict with the results of a recent Gallup poll regarding stock ownership by Americans. The ratio of household equities to money market fund assets is near a record high, 60% above the 2007 high and 30% above the 1999 internet bubble high. The chart would appear to prove irrational exuberance among the general populace.
In reality, the lowest percentage of Americans currently own stock over the last two decades. With the stock market within spitting distance of all-time highs, only 52% of Americans own stock, down from 65% in 2007. As the stock market has gone up, average Americans have left the market. They realize it is a rigged game and they are nothing but muppets to the Wall Street shysters.
The reason the ratio of household equities to money market funds is so high is due to the Federal Reserve’s “Save a Wall Street Banker” policies implemented over the last seven years. When you purposely destroy the lives of senior citizens by reducing interest rates to “emergency” levels of 0% and keep them there six years after the great recession is over, it tends to reduce the amount of savings in money market funds. The divergence created by the Fed’s insane policies is borne out by the data.
The average middle class American has experienced two Fed induced financial collapses since 2000, with another coming down the tracks in the very near future. They have been impoverished by the Fed’s ZIRP and QE policies, sold to the masses as saving Main Street, but really designed to save and further enrich Wall Street. The entire engineered stock market rally has been designed by the Fed, Wall Street bankers, and the CEO’s of corporate America who have bought back hundreds of billions of their stock, in order to enrich the .1% and their lackeys.
The average middle class American has rationally exited the rigged stock market and refuse to be lured back in. Back in 2007, nearly three in four middle-class Americans, with annual household incomes ranging from $30,000 to $74,999, said they invested money in the stock market according to Gallup polling.
Today, only 50% report having stock investments. This 22% drop is more than double the changes seen in stock investing among higher and lower income groups. Millions of middle class families have had to liquidate stock holdings just to survive in this ongoing Main Street recession.
Americans Invested in the Stock Market — Selected Trend By age and income
[th]April 2007%[/th][th]April 2016%[/th][th]Change(pct. pts.)[/th] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
65 | 52 | -13 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
28 | 23 | -5 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
72 | 50 | -22 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
90 | 79 | -11 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
52 | 38 | -14 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
73 | 62 | -11 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
65 | 56 | -9 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Gallup Poll Social Series |
The data indicates an extremely dangerous coming scenario. The middle class is already angry, disillusioned, suspicious of the establishment, and impoverished by Fed induced inflation, Fed induced lack of interest income and Obama induced Obamacare disaster. Those making less than $75,000 are invested in the stock market at an all-time low level, and what they do have invested is a pittance compared to what the ultra-rich have in the market.
The millennial generation also has a record low level of stock ownership, as they carry massive levels of student loan debt, have less job opportunities as Boomers can’t afford to leave the job market, pay skyrocketing rents, and deal with a Fed induced over-priced housing market. They don’t trust the establishment, government, or Wall Street. The angry older middle class are venting their anger by supporting Trump for president. The pissed off younger generations are throwing a monkey wrench into the coronation of Queen Hillary by supporting Sanders in droves.
The dangerous divergence begins to come into focus. Every credible stock market valuation used over the last 100 years is now at extreme levels only seen in 1929, 2000, and 2007. The Shiller P/E ratio now stands at 26.4, putting valuations in the highest decile throughout history, indicating likely real returns of 0.5% over the next 10 years. As stock prices push towards all time highs, corporate profits continue to plunge. A 40% to 60% decline in stocks is essentially baked into the cake.
Millions of upper middle class professionals have bought into the establishment propaganda. They actually believe the Federal Reserve is infallible and can keep stock prices elevated for eternity. Despite conclusive evidence the Fed failed in 2000/2001 and again in 2008/2009, the willfully ignorant stock market participants are putting their faith in highly educated academics whose insane monetary machinations have led to a global recession and global debt levels imperiling the worldwide global economy.
The last remaining threads keeping the country from imploding have been the rising stock market and the home price recovery. Both recoveries have been engineered through Fed easy money, Wall Street fraud, and mainstream media propaganda. Neither is based on a solid foundation of free market true demand. When the bottom gives out, it will drastically impact the upper middle class and people who pass for rich in this day and age. When the tide goes out for the third time in the last sixteen years, millions will be revealed to be swimming naked and in debt up to their eyeballs.
The dangerous divergence will then take a nasty turn. The bottom half of the 1% will now be as angry as the 99%. Any attempt by the establishment to further screw the nation by bailing themselves out will be met with violent disapproval. The country is a powder keg. The upcoming election is guaranteed to inflame opposing factions. A stock market crash in the next six months would sow the seeds of financial, political, and social upheaval not seen in this country since the 1960s. The established social order will be swept away in a swirl of chaos and retribution. The dangerous divergence will be resolved.
http://www.theburningplatform.com/2016/04/24/dangerous-divergence/
Today at 7:16 am by Rocky
» utube 10/31/24 MM&C Central Bank Governor of Iraq-Monetary Stability Directly Stimulating the Econom
Today at 7:15 am by Rocky
» utube 10/31/24 MM&C MM&C News Reporting-Security & Stability-Sinjar Allocations-Unprecedented Develo
Today at 7:15 am by Rocky
» Rafidain and Rashid deny the suspension of electronic payment devices: The service continues
Today at 7:10 am by Rocky
» Iraq meets a third of housing needs, two directions identified to solve the crisis completely
Today at 7:06 am by Rocky
» Activating the General Amnesty Law, a summary of the meeting between Al-Mashhadani and Al-Dhari
Today at 7:03 am by Rocky
» Parliamentary recommendations to change "five" ministers in Al-Sudani's government.. Get to know the
Today at 7:00 am by Rocky
» The controversy over the “controversial laws” continues.. and Al-Mashhadani confirms: They will not
Today at 6:58 am by Rocky
» Sunday's currency auction.. 99% of the Central Bank of Iraq's sales went abroad
Today at 6:56 am by Rocky
» Higher fines and powers.. the most prominent amendments to the expected Civil Defense Law
Today at 6:53 am by Rocky
» Transport announces completion of initial design phase of development road with its land and rail ro
Today at 6:51 am by Rocky
» Parliamentary Security: The Intelligence Law is ready.. 3 important paragraphs
Today at 5:12 am by Rocky
» Central Bank dollar sales rise in today's auction
Today at 5:10 am by Rocky
» Divided into three... Al-Fatlawi criticizes the Arab and Islamic position towards the aggression on
Today at 5:09 am by Rocky
» Parliamentary Transport Committee reveals upcoming quadripartite meeting on development path
Today at 5:07 am by Rocky
» Parliamentary Planning: The ministerial amendment is based on 4 directions
Today at 5:06 am by Rocky
» "Until the case is settled"... the judiciary suspends the decision to dismiss Al-Karwi from the pres
Today at 5:05 am by Rocky
» Increasing for a year and a half.. Announcing the results of the investigation into Baghdad's pollut
Today at 5:03 am by Rocky
» Banking Association: Reducing inflation helped stabilize commodity prices
Today at 5:00 am by Rocky
» Parliamentary Investment and Development Committee calls for commitment to the “Investment Law”
Today at 4:58 am by Rocky
» Parliamentary Finance settles the controversy: This is the fate of the appointments file in the 2025
Today at 4:57 am by Rocky
» Trade Bank of Iraq explains procedures for money transfers and combating money laundering
Today at 4:56 am by Rocky
» Within three days, Iraq indicates an increase in the number of aircraft landing and crossing the air
Today at 4:54 am by Rocky
» Public services reveal the reality of the capital.. This is what it needs
Today at 4:53 am by Rocky
» Population growth and ongoing suffering.. A briefing on the "deteriorating" situation in Baghdad
Today at 4:53 am by Rocky
» Parliamentary Committee Proposes Attracting Real Estate Developers
Today at 4:51 am by Rocky
» Direction to transfer beneficiaries of the protection network to the Social Security Law
Today at 4:50 am by Rocky
» Speaker of Parliament
Today at 4:49 am by Rocky
» I learned {morning}
Today at 4:48 am by Rocky
» Al-Sudani directs to establish the concept of (Made in Iraq)
Today at 4:47 am by Rocky
» Al-Mashhadani to {Al-Sabah}: Controversial laws will be presented unanimously
Today at 4:46 am by Rocky
» Establishment of Al-Ghadeer Residential City in Muthanna
Today at 4:44 am by Rocky
» Work: Transferring beneficiaries of the safety net to the Social Security Law
Today at 4:43 am by Rocky
» Parliamentary Immigration Committee demands increasing the amount of the return grant
Today at 4:42 am by Rocky
» The most prominent achievements of the Sudanese government in the education sector
Today at 4:41 am by Rocky
» Welcome to the trends of establishing an administrative capital
Today at 4:40 am by Rocky
» Securities trade more than 88 billion shares
Today at 4:39 am by Rocky
» Focus on the banking sector
Today at 4:38 am by Rocky
» Imports and dependence on oil are obstacles to Iraq’s accession to the World Trade Organization
Today at 4:35 am by Rocky
» Preparatory meetings for the 40th session of the Standing Committee for Economic and Commercial Coop
Today at 4:33 am by Rocky
» Minister of Industry: Our visit program to Basra will include following up on the progress of work a
Today at 4:32 am by Rocky
» Al-Mashhadani and the Secretary-General of the Iraqi National Project stress the importance of activ
Today at 4:29 am by Rocky
» Minister of Industry discusses action plan to complete steel plant in Basra and operate it on schedu
Today at 4:28 am by Rocky
» Al-Sayhoud: Accelerating the implementation of the strategic development road project will advance t
Today at 4:26 am by Rocky
» Amnesty International issues a “warning” to the Iraqi government over “violations” inside Al-Jadaa c
Today at 4:24 am by Rocky
» Retirement releases civilian and military salaries for November gradually
Today at 4:21 am by Rocky
» The regional government between consensus and complexity.. Will the Democratic Party have the final
Today at 4:19 am by Rocky
» "Industrial Investment" is ready for voting.. MP: Attract more real estate developers to establish d
Today at 4:17 am by Rocky
» Rafidain denies stopping its electronic payment cards at fuel stations
Today at 4:16 am by Rocky
» Iraqi Interior Ministry: Corruption rate in electronic passports since its implementation has reache
Today at 4:13 am by Rocky
» Parliamentary Defense: Removing US Forces from Iraq is Urgent
Today at 4:12 am by Rocky
» MP: Parliament will pass controversial laws and question two ministers
Today at 4:11 am by Rocky
» A veteran returned with a rare agreement between Al-Maliki and Al-Halbousi.. Who is the new Speaker
Today at 4:10 am by Rocky
» US report recommends informing “Iraqi leaders” of consequences of Iran’s use of “Iraqi arena” agains
Today at 4:09 am by Rocky
» Iraqi parliament recommends changing five ministers in Al-Sudani's government
Today at 4:07 am by Rocky
» Parliamentarian calls for investigation into the largest corruption files in Diyala
Today at 4:06 am by Rocky
» Al-Yekti: Forming the new government in the region will be very complicated
Today at 4:05 am by Rocky
» Movement warns of an agenda to target Iraq
Today at 4:04 am by Rocky
» The Ministry of Construction confirms that the government is proceeding with the service of resident
Today at 4:03 am by Rocky
» More than a billion dollars in sales from the Central Bank of Iraq during the week
Today at 4:02 am by Rocky
» Providing entrepreneurship initiative loans to more than 5,000 people
Today at 4:01 am by Rocky
» Parliamentary Committee announces seeking to amend the Oil Ministry Law
Today at 4:00 am by Rocky
» Directive from Al-Sudani to the Crisis and Disaster Management Center
Today at 3:59 am by Rocky
» The drug scourge is worsening and Iraq launches a community campaign to confront it
Today at 3:58 am by Rocky
» Suspended laws await Al-Mashhadani’s “hammer”… Parliament Speaker faces “complex” files and short ti
Today at 3:57 am by Rocky
» Retirement Authority: Completing procedures for disbursing retirees’ salaries for the current month
Today at 3:55 am by Rocky
» The regional finance department hands over the payroll lists to the federal finance department
Today at 3:52 am by Rocky
» Morning list of dollar exchange rates in Iraq
Today at 3:50 am by Rocky
» Al-Sudani receives invitation to participate in Arab-Islamic summit on Gaza and Lebanon
Today at 3:49 am by Rocky
» Al-Maliki receives Al-Mashhadani and they stress the importance of activating the parliament's work
Today at 3:48 am by Rocky
» Governmental move to transfer beneficiaries of the protection network to the Social Security Law
Today at 3:47 am by Rocky
» Türkiye and Iraq.. Coordination against the Kurdistan
Yesterday at 4:43 am by Rocky
» Qatar affirms its aspiration to participate effectively in the path of development
Yesterday at 4:42 am by Rocky
» Amidst air alert, US forces resume training activity at Harir base
Yesterday at 4:40 am by Rocky
» Al-Sudani's advisor reveals the positives of the Central Bank's interest rate cut
Yesterday at 4:39 am by Rocky
» Leader in the framework: Ankara has 75 illegal military sites inside Iraq
Yesterday at 4:38 am by Rocky
» Parliamentary Committee Reveals New Details on Oil Smuggling
Yesterday at 4:36 am by Rocky
» Al-Sahaf: America relies on deception regarding the withdrawal of its forces from Iraq
Yesterday at 4:35 am by Rocky
» "It failed in its work".. Al-Salihi calls on Al-Sudani to include the defense in the ministerial cha
Yesterday at 4:34 am by Rocky
» With more than a billion dollars, Iraq is the fourth country that imports the most from Türkiye duri
Yesterday at 4:32 am by Rocky
» Parliamentary Committee announces seeking to amend the Oil Ministry Law
Yesterday at 4:29 am by Rocky
» Türkiye: Development Road Designs 90% Complete
Yesterday at 4:28 am by Rocky
» Al-Azzawi on the “Baghdadna” platform: It supports digital transformation files and provides service
Yesterday at 4:27 am by Rocky
» What are the positives of the Central Bank reducing interest rates? Al-Sudani’s advisor explains
Yesterday at 4:25 am by Rocky
» Foreign Report: A major Chinese company is exploring an oil field in central Iraq
Yesterday at 4:23 am by Rocky
» Governmental move to establish an administrative capital in Baghdad
Yesterday at 4:22 am by Rocky
» Al-Mandlawi and Al-Hakim agree to proceed with the legislation of important laws and activate the su
Yesterday at 4:19 am by Rocky
» Parliamentary Education Committee acquits the “education sector” of the spread of poverty and unempl
Yesterday at 4:17 am by Rocky
» The Ministry of Electricity denies the increase in tariffs and confirms the continuation of support
Yesterday at 4:14 am by Rocky
» MP calls for not passing the partnership contract between Iraq and the International Finance Corpora
Yesterday at 4:13 am by Rocky
» “A fraudulent maze” reveals “thorny” files that swallow the pockets of Iraqis
Yesterday at 4:10 am by Rocky
» "Sudanese Meter" .. Failure to achieve 57% of promises, and full and partial implementation reaches
Yesterday at 4:09 am by Rocky
» Al-Maliki's coalition denies that Halbousi supports Al-Mashhadani in reaching the parliament preside
Yesterday at 4:08 am by Rocky
» State of Law: Ministerial change is currently ruled out
Yesterday at 4:07 am by Rocky
» Independent candidates in Sulaymaniyah and Halabja reject the results of the Kurdistan Parliament el
Yesterday at 4:05 am by Rocky
» Al-Sudani and Erdogan discuss unifying positions on regional developments
Yesterday at 4:04 am by Rocky
» Iraq reduces oil exports and domestic consumption
Yesterday at 4:03 am by Rocky
» Parliament is unaware of the details of the 2025 budget and fears of a “shock” in oil prices
Yesterday at 4:02 am by Rocky
» Al-Mashhadani and Barzani stress the need to resolve pending issues and pass laws that serve the int
Yesterday at 4:00 am by Rocky