Archive for November, 2013

20
Nov
13

Is it the Roaring 20’s All Over Again?

With global stock markets at all time or multi-year highs as well as global real estate sky rocketing, it makes one wonder how this happened just over 4 years from a near melt down of the global economic system initiated by just some hundreds of billions of sub prime mortgages in the United States. The Gap between the rich and the poor has never been so high in world history, with wages for the middle class staying stagnant for decades after taking inflation into account as well as global poverty at record highs. How can this happen and has this happened before? The answer is in the roaring 20’s. Coincidentally with the release of the Gatsby movie earlier in the year (where the role was reprised by Leonardo DiCaprio) celebrities have never made so much money in their lives (often drunk as well as wastefully partying and spending their fortunes away), executives have never made so much more than the average employee, people are paying record amounts for mega mansions and high end luxury real estate and luxury vehicles or goods. The rich economy is prospering while the economy for the remaining majority average population is struggling. Sales at high end luxury producers like Porsche, Tiffany, Coach, Prada, etc. are soaring while regular retailers like Sears, JC Penney and even Walmart are struggling. The Federal Reserve, ironically founded 100 years ago, have replicated their loose monetary policies of the roaring 20’s this past decade allowing the global stock markets to be up in an unprecedented 10 out of the last 11 years. Will this end differently than how the Roaring 20’s? Probably not. Why would anyone intentionally create such imbalances? To help the elites get richer off the rest of the population knowing their are easy manipulated and distracted by lifestyle obsession. Here we go again….

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