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.
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
Stock Buybacks Surge: Another Red Flag for the U.S. Economy.
Video: Why is the stock market so good when the economy is so bad?
--
If you like #UNFTR, please leave us a rating and review on Apple Podcasts and Spotify: unftr.com/rate and follow us on Facebook, Bluesky, and Instagram at @UNFTRpod. Visit us online at unftr.com.
Become a member at unftr.com/memberships.
Buy yourself some Unf*cking Coffee at shop.unftr.com.
Visit our bookshop.org page at bookshop.org/shop/UNFTRpod to find the full UNFTR book list, and find book recommendations from our Unf*ckers at bookshop.org/lists/unf-cker-book-recommendations.
Access the UNFTR Musicless feed by following the instructions at unftr.com/accessibility.
Unf*cking the Republic is produced by 99 and engineered by Manny Faces Media (mannyfacesmedia.com). Original music is by Hold Fast (holdfastband.com). The show is hosted by Max and distributed by 99.
Support the show: https://www.unftr.com/memberships
See omnystudio.com/listener for privacy information.