Joe Doakes from Como Park writes:
If the economy is as bad as the first quarter economic report indicated, why is the stock market so high? Powerline supplies a clue.
We know that correlation does not prove causation, but since the Standard and Poors Weekly 500 stock index so closely tracks federal government stimulus spending since President Obama took office in 2009, it’s fair to ask if we’re headed for another stock market bubble, one entirely of government’s making.
Joe Doakes
Fair, but – until we get a media that isn’t serving as a praetorian guard and, hopefully, a Congress full of economic realists – pretty much hopeless.
Dow Jones average is a sham. It gets updated with new companies on a regular basis, so there is no baseline. Is it going up becuase capitlization of listed Compnaies increased, or that one on the skids was replaced by one on the rise? It’s a fraud…