Looking Back Fondly On Ronald Reagan

The next time someone tells you that OBAMA IS DESTROYING THE ECONOMY, remind them that stock market and corporate profits are at all-time highs.

When they tell you that THIS hasn't helped them any, remind them they've just admitted that TRICKLE-DOWN ECONOMICS DOESN'T WORK.

remind them that stock market and corporate profits are at all-time highs.

they've just admitted that TRICKLE-DOWN ECONOMICS DOESN'T WORK.

never happens. :>)

To be fair, I found it elsewhere.

Remember what Clinton did - cook the stock market and when he was leaving office it started down and dumped after he was retired. Expect the same soon.

Mart>

I think you're giving Clinton wayy too much credit....

It was already well underway by then.

My bets the correction will continue in an upward trajectory.

If the stock market were the real economy that would be good news.

So it's actually bad news that stock values and corporate profits are on the rise?

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As with most things in life it all depends *WHY* the stock prices and corporate profits are going up.

If the share prices and profits were going up because of increased demand for their products/services, because of new and innovative products, or because of dramatic improvements in production methods resulting in lower costs, this would be one thing because of the implied increases in economic activity, employment, tax revenues and GDP.

In reality, it appears that much of the share price increase is yet another asset bubble, driven by the flood of ersatz capital resulting from the FRB zip/qe policies, which were intended to "kick start" or "pump prime" the economy, but which has been diverted/converted to speculation and the "carry trade." More of the share price increase appears to be due to market manipulation such as massive stock buy-backs, converting ordinary [dividend] income into capital gains income, taxable at much lower rates, and increasing the value of executive stock options.

Many of the corporate profits are the result of holding the profits in off-shore tax havens, evading income taxes. Even more of the corporate profits are the result of continual lowering of the wages/benefits and increases in uncompensated overtime, resulting in static to falling inflation adjusted wages even as the productivity increases.

If something seems to good to be true -- it is...

All of the above indicators are also positive.

The long term trend suggests the pretty much the opposite...

--there has been no such "flood of capital"...

"economic expansion", IOW

Say what?

Dan