An economics, investment, trading and policy blog with a focus on Modern Monetary Theory (MMT). We seek the truth, avoid the mainstream and are virulently anti-neoliberalism.
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Friday, July 1, 2022
First half market review
From Trump over on his Truth Social…. He predicted this… worst EVV-AH!
Only a change in asset composition. Some people now have more cash, less stock, whereas before they had more stock, less cash. There's no "net" change in aggregate "wealth."
Furthermore the markets were artificially inflated by Fed policies, Wall Street games, and corporate stock buybacks, none of which strengthened the real economy.
The financial economy is a casino in which the chips (i.e. paper wealth) are not plowed into the real economy. Hence there is little loss to the real economy.
Trump looks stupid when he talks about the markets. Liberals regard him as a clown. So do true conservatives.
Only a change in asset composition. Some people now have more cash, less stock, whereas before they had more stock, less cash. There's no "net" change in aggregate "wealth."
ReplyDeletePaper profits aren't profits.
ReplyDeleteIt's only bankable when you liquidate.
Good points, both of you.
ReplyDeleteFurthermore the markets were artificially inflated by Fed policies, Wall Street games, and corporate stock buybacks, none of which strengthened the real economy.
The financial economy is a casino in which the chips (i.e. paper wealth) are not plowed into the real economy. Hence there is little loss to the real economy.
Trump looks stupid when he talks about the markets. Liberals regard him as a clown. So do true conservatives.