Of course, it’s a bubble–even if it’s not ready to pop–but it’s not just the NASDAQ. There’s no fundamental reason for stocks to be breaking records. The economy at best stumbles along.
So why are all the indexs up? Supply and demand. (I aced college economics even if the Smart Guys in Washington didn’t.)
The Fed has been flooding the economy with new money for most of this decade. But it doesn’t come to you or me, it goes to the banks. Where are they putting it? In bonds underwritten by stocks, bonds and commodities.
China has a stock bubble going, too. When they both burst, each country will blame the other. Just as the democrats and Republicans blame each other for everything.
Everything on Wall Street is up (except oil because that supply is burgeoning), and precious little of it trickles down to Main Street
The Fed created this bubble. Bubbles eventually burst.
Why did the same intelligence community overestimate the threat of Hussein’s Iraq then underestimate the threat of ISIL?
Simple. They’re human. They tailored their findings to their perceived expectations of the then President. Neither Bush nor Obama (nor the public) should blame them for catering to their expectations when each made his preferences so clear.
Then how do we get better intelligence? Elect a chief executive with enough integrity that his staff will tell him the truth, rather than what they think he wants to hear.
No, I can’t name a modern President who did that. Maybe Truman or Eisenhower, if you accept them as modern. Certainly not JFK or Nixon. I really don’t think Reagan or Clinton.
Integrity is an endangered specie inside the Beltway, perhaps due to lack of safe habitat.
The other evening I sat through a conversation by liberal friends (yes, I have them) whether Bill Clinton’s IQ was double that of George Bush. See, liberals talk about silly things just like conservatives; they’re just different.