Ponzi wealth hits record high: Make-believe for billunaires
Let's see, step one: take all of the billunaire wealth and divide by the number of households, pretending that each family has an equal share. Then do the opposite for the debt, which IS in fact held by households and not by the ultra-wealthy. Add it all up and instead of arriving at negative household net worth, arrive at the highest fake net worth in U.S. history:
Printed Wealth
Next, ignore interest rates stuck at 0% for six years straight, and pretend that Central Banks are not the marginal buyer of all financial assets and literally the only thing keeping markets from collapsing. Pretend that liquidity is the same as solvency and assume that 1.2% yield on Spanish Ponzi Bonds is fair value. Assume that there is still a connection between asset valuations and the economy even though the economy is leading the stock market down, for the first time in history.
#REF: Does not resolve:
Furthermore, pretend that all of the counter-parties backing the various pieces of paper are equally solvent under all financial conditions. Ignore the 50% drop in corporate profits that occurred in 2008 when GDP fell a mere 3%. And likewise assume that the Middle Class which has been systematically liquidated to bolster corporate profits for decades straight, will continue to buy overpriced branded merchandise from the same corporations in perpetuity, hence supporting current stock prices of the companies that laid everyone off.
An experiment in taking rational self-indulgence to its logical self-implosion.
