For some time I have been trying to understand why the stock market has recovered significantly since the crash of 2008/2009 while the housing market is still falling.Well, I finally arrived at a premise that makes some sense. It is supply and demand. One of the bad guys, Wall Street, seems to be the winner from this disaster. Not only were they bailed out by the tax payer, but now the product that they are selling is in demand and competition has been eliminated.
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Both can be accounted for if you consider Quantitative Easing.
The Fed prints more paper or generates more finding. Prices go up and values go down.
Purchasing a share of stock requires more funds and it appears more attractive as that also means it sells for a higher price and appears to have generated a profit.
Meanwhile houses also go up in price but that just makes them harder to buy because the cost of everything else has gone up as well,while the job market remains artificially repressed.
One goes up and one goes down, meanwhile the average U.S. Citizen just gets handed a load of crap!