Despite all the bullshit pouring out of the assholes on TV everyday the underlying economy is dying. You can only count share buy backs and dividends from cutting jobs and capex as growth for so long before that untenable reality breaks down. You simply cannot decimate investment, ignore job creation, double debt levels, and destroy the middle class and still hope to grow an economy. It is an impossibility. Why are we even debating this fact??? What is going to drive this economy to higher growth given this course??
Solution: Fix the tax code and remove the ubiquitous put option on the market. The fact that the Fed has for 5 years openly shown its objective to push the market higher has literally robbed fixed investments in lieu of a guaranteed and higher return in the financial markets. Money allocators did what they are supposed to do. They allocated funds to the highest return / lowest risk asset. So the allocators are not responsible. Those who created a system to reward unrisk taking over risk taking are responsible. These concepts are very basic concepts of resource allocation. Yet for some reason ‘the smartest minds’, the ones controlling essentially everything because they know better what’s good for us have completely misguided this ship. They decided the quickest way from point A to point B is to sail away from Point B in a straight line. And we the people bought into it because it’s not our place to question our ‘leaders’. We will give our undying loyalty to them till our last slice of bread.