An Ivy League Education and They STILL Can’t Think for Squat

Monday, April 11, 2011
By Paul Martin

by Phoenix Capital Research
ZeroHedge.com
04/11/2011

he US Federal Reserve has bet the farm… and the Republic on the idea that they can inflate us back to a recovery.

In plain terms, Bernanke and pals believe that if they can make the stock market rise, people will feel richer and will start spending money again, insuring that the US economy (which is 70% based on the consumer) will come roaring back to life.

The problem with this sort of thinking is that it’s so superficial as to be laughable, especially for those claiming to have an advanced education from a top university.

Indeed, the fact that the S&P 500 goes from 1,000 to 1,330 DOESN’T mean that those who own stocks are that much wealthier. This is because the nominal price of stocks (what the S&P 500 is priced at) IS NOT the same as the PURCHASING POWER of stocks.

Here’s the S&P 500 priced in US Dollars. Looks like investors are getting a lot richer in a hurry doesn‘t it?

The Rest…HERE

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