Wed May 21 20141
Can the Top Ten Percent Prop up the Whole Economy?
Smith wonders if there is enough money at the top to grow the economy, uh, no there is not. All of that is evident in the stats in my last two or three posts as well as below about mortgages.
Millions still stuck with homes worth less than mortgages.
The article reports that 9.7 million have underwater mortgages. In other words, the problem never really got fixed, it just got papered over.
In this space I also asked, did the Club Med Euro problem ever get fixed? The answer to that one is also no. So the improvement has been FED purchasing along with other Central Banks of bonds. That money found its way into the stock market.
As we mentioned in the previous post, there are apparently millions of unsold autos around the world.
The evidence of another top in the stock market continues to mount.
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