Why the Stock Market Keeps Going Up.
(While Everything Else Goes Down.)
Why does the stock market keep going up when the economy feels so bad? It’s the question we probably get the most and, quite frankly, it’s not a bad one. The primary reason equities seem invincible is because of the dramatic increase in the money supply over the past four decades. That explains the supply side of the equation at least. But a lot had to happen behind the scenes to allow for the money supply to be absorbed into the financial system and ultimately benefit a fraction of the population.
Show Notes
Resources
- MacroMicro: US - M1 & M2 Money Supply
- Wikipedia: Buffett indicator
- CFI: Shiller P/E
- Civiqs: Donald Trump: Job Approval, Second Term
- Wall Street Journal: More Americans Than Ever Own Stocks
- Brookings: Rising inequality: A major issue of our time
- The Review of Economic Studies: Stock Market Participation, Inequality, and Monetary Policy
- Roosevelt Institute: Our New Report: Defining Financialization
- Levy Economics Institute: Have We Been Here Before? Phases of Financialization within the 20th Century in the United States
- The Fed: 3. Leverage in the Financial Sector
UNFTR Resources
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