Why I’m skeptical of the current stock and housing gains…

February 17, 2013

With Stock Prices Soaring, Investors Fear Another Crash


While the economy certainly seems to be recovering, much of this has already been reflected in higher stock prices. And while U.S. stocks may appear inexpensive compared with current earnings, that may be an illusion. Economists say earnings have been artificially inflated, both by the Federal Reserve’s actions to drive down interest rates and by the federal government’s enormous budget deficits. Deficits give the economy a short-term shot in the arm, boosting demand for companies’ products, while lower interest rates have allowed companies to borrow cheaply at what are, in effect, subsidized rates.

This video by Aaron Clarey got me thinking about this issue again more urgently, and I saw the above article only a few days later. I saw Clarey’s video after I read his quasi-manifesto Enjoy the Decline (my Amazon review of it is here).


About The Codgitator (a cadgertator)

Catholic convert. Quasi-Zorbatic. Freelance interpreter, translator, and web marketer. Former ESL teacher in Taiwan (2003-2012) and former public high school teacher (2012-2014). Married father of three. Multilingual, would-be scholar, and fairly consistent fitness monkey. My research interests include: the interface of religion and science, the history and philosophy of science and technology, ancient and medieval philosophy, and cognitive neuroscience. Please pray for me.
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