Comments Subscribe to Personal Liberty News Feed Subscribe to Personal Liberty
 

The Stock Bubble

March 6, 2013 by  

The Stock Bubble
PHOTOS.COM

The Dow Jones industrial average topped its all-time high yesterday, zipping past the previous high of 14,198.10 it hit on Oct. 9, 2007.

On the backs of money debasement, $7 trillion in additional debt and mainstream media propaganda, helicopter Ben Bernanke has created the illusion of a prosperous economy. It’s a bubble that will soon burst. When it does, it will be ugly.

Even Bernanke knows this. Although he seems committed to the Fed’s bond-buying stimulus right now (aka QE3), the Fed has begun formulating PR strategy for the end of the $85 billion in monthly money printing and the concomitant crash.

Despite Wall Street’s irrational exuberance, 59 percent of Americans say the United States is in a recession, and “Americans across the board think the economic outlook is grim,” said Raghavan Mayur, president of TIPP, a unit of TechnoMetrica Market Intelligence and partner of Investor’s Business Daily. The IBD/TIPP Economic Optimism Index plunged 5.1 points in March to 42.2, its lowest point since December 2011. The Federal economic policies confidence gauge fell to a 15-month low. January personal income tumbled 3.6 percent, the worst monthly drop in 20 years. Retailers are about to close thousands of stores. And, adjusted for inflation, the stock market is nowhere near historic highs.

Leave it to Zero Hedge to put it all in perspective. The last time the DJIA was here:

  • Dow Jones Industrial Average: Then 14,164.5; Now 14,164.5
  • Regular Gas Price: Then $2.75; Now $3.73
  • GDP Growth: Then +2.5 percent; Now +1.6 percent
  • Americans Unemployed (in Labor Force): Then 6.7 million; Now 13.2 million
  • Americans On Food Stamps: Then 26.9 million; Now 47.69 million
  • Size of Fed’s Balance Sheet: Then $0.89 trillion; Now $3.01 trillion
  • U.S. Debt as a Percentage of GDP: Then ~38 percent; Now 74.2 percent
  • U.S. Deficit (LTM): Then $97 billion; Now $975.6 billion
  • Total U.S. Debt Outstanding: Then $9.008 trillion; Now $16.43 trillion
  • US Household Debt: Then $13.5 trillion; Now 12.87 trillion
  • Labor Force Participation Rate: Then 65.8 percent; Now 63.6 percent
  • Consumer Confidence: Then 99.5; Now 69.6
  • S&P Rating of the US: Then AAA; Now AA+
  • VIX: Then 17.5 percent; Now 14 percent
  • 10 Year Treasury Yield: Then 4.64 percent; Now 1.89 percent
  • EURUSD: Then 1.4145; Now 1.3050
  • Gold: Then $748; Now $1583
  • NYSE Average LTM Volume (per day): Then 1.3 billion shares; Now 545 million shares

Helicopter Ben can keep this charade up a while longer, but there will be a reckoning.

Bob Livingston

is an ultra-conservative American and author of The Bob Livingston Letter™, founded in 1969. Bob has devoted much of his life to research and the quest for truth on a variety of subjects. Bob specializes in health issues such as nutritional supplements and alternatives to drugs, as well as issues of privacy (both personal and financial), asset protection and the preservation of freedom.

Facebook Conversations

Join the Discussion:
View Comments to “The Stock Bubble”

Comment Policy: We encourage an open discussion with a wide range of viewpoints, even extreme ones, but we will not tolerate racism, profanity or slanderous comments toward the author(s) or comment participants. Make your case passionately, but civilly. Please don't stoop to name calling. We use filters for spam protection. If your comment does not appear, it is likely because it violates the above policy or contains links or language typical of spam. We reserve the right to remove comments at our discretion.

Is there news related to personal liberty happening in your area? Contact us at newstips@personalliberty.com

Bottom
close[X]

Sign Up For Personal Liberty Digest™!

PL Badge

Welcome to PersonalLiberty.com,
America's #1 Source for Libertarian News!

To join our group of freedom-loving individuals and to get alerts as well as late-breaking conservative news from Personal Liberty Digest™...

Privacy PolicyYou can opt out at any time. We protect your information like a mother hen. We will not sell or rent your email address to anyone for any reason.