Why is the stock market rallying when the economy is so bad?

Post by malandrew » Mon, May 11, 2020, 3:39 AM UTC

hannasanarion wrote: post #254

chiefalchemist wrote: post #107

Earlier quoted context omitted.

Because the Fed isn't there all the time. Under normal circumstances, you can't just sit there. Aside from competition, you won't retain quality employees.

But they are now, and that's what matters. When prices fell the first time, it didn't even take a week before the government passed the largest stimulus ever, 80% of which went to corporations. Investors know that the government will do anything to underwrite their risk.

Post by karatestomp » Mon, May 11, 2020, 3:44 AM UTC

freediver wrote: post #538

karatestomp wrote: post #330

Earlier quoted context omitted.

The biggest tax advantages for investing go to the rich, who can arrange their businesses and finances to max out retirement accounts, and very highly paid professional with fat 401k matches. No matter how someone with a normal salary and a 2% match tries they cannot get anywhere near maxing out a 401k, due to how they’re structured (over 50% of the max can only come from an employer, and the employee can’t make that…

"Rich" typically do not care about their retirement accounts and do not have an employer. They typically benefit from owning a business, having a stream of passive investments and compounding growth. But this may depend on your definition of rich.

Post by unethical_ban » Mon, May 11, 2020, 3:50 AM UTC

malandrew wrote: post #595

unethical_ban wrote: post #562

Earlier quoted context omitted.

Like Sanders says, when half a million people are homeless, our healthcare system is a joke, and our infrastructure is unmaintained, we have a LOT of work to do. And a lot of spending. There is a far-left opinion that there should be no such thing as a billionaire, that a single human's marginal tax rate should hit 100% at some point. I wouldn't say "never" to the idea at this point.

> our infrastructure is unmaintained Bernie supporters are generally the least likely to get their hands dirty and do the kind of work necessary to build and maintain infrastructure. Pretty much everyone I meet that does that kind of work is Republican. Not saying this is a universal truth, but it's a somewhat accurate generalization. Source for party affiliation by a sampling of occupations: http://verdantlabs.com/p…

Post by Natsu » Mon, May 11, 2020, 3:56 AM UTC

JKCalhoun wrote: post #128

bb2018 wrote: post #13

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I agree. Also, I know it is hip to say that Wall Street is short-sighted, but in reality it is one of the the few fields where people routinely think decades at a time. If you run a large pension fund or investment account you were already risk-weighted and if the cash isn't needed for 10+ years you'd much rather own a slice of the world's largest companies ten years from now instead of gold or cash under a mattress.

I feel like there is a decade of guillotines in the future that they are either not seeing or are looking way past. But then I've always been cynical about the growing divide between the uber-wealthy and the other 99% of this country.

Post by malandrew » Mon, May 11, 2020, 3:56 AM UTC

celticninja wrote: post #305

shawnz wrote: post #282

Earlier quoted context omitted.

Do you think a typical middle class American would rather be living in the world as it was 40 years ago though? Or today's world, full of technology and infrastructure that was funded by the rich?

what technology and infrastructure was funded by the rich? I think you mean funded by the tax payer, rich and poor alike, but the poor pay a higher percentage of income in tax.