Five years ago today, Wall Street hit rock bottom. The Dow Jones industrial average closed at 6,547.05. The Standard & Poor’s 500 hit 676.53. The Nasdaq composite index ended at 1,268.64. Then it barely looked back. The bull market that began the…
Funny how these things work. The economy collapsed taking everything with it. The government stepped in and propped up those who caused the collapse. Since then, the instigators have rebounded quite handsomely, but the rest of America is still struggling.
The market has been growing for 5 years, and we’re due for a correction. The longer things go, the harder the correction will be. This article says that profits are driving this bull market, but how can profits be sustained when nobody has jobs? The profits being realized are due to squeezing blood from a turnip. Eventually, no amount of pressure will give you what you want. We need career-path type jobs, and without that, we’re in for a bumpy ride. The sad thing is that the entire country is tied into Wall Street whether we choose to do so or not. So, when they sneeze, we all get the flu.
A house built on a shaky foundation will last for only so long. Our recovery has happened without the benefit of job growth that would be needed to sustain it. Once the Feds quit pumping money into Wall Street, it has nowhere to go but down. Hopefully I’m wrong, but this appears to be nothing but a 2014 version of Voodoo Economics.