We did it! Now What? Investor Sentiment looks back with CNN:

Dow: Then and now
January 14, 2000
October 3, 2006

S&P 500
eBay share price
Microsoft share price
General Electric
Proctor & Gamble
Fed funds rate
GDP growth
2000: 3.7%2001: 0.8%
2005: 3.2%2006E: 3.4%
National median home price
30-year mortgage rate
Average U.S. credit card debt per household
Real median household income
Warren Buffett’s net worth
$26 billion
$42 billion

Now something here is shocking. Full House baby! All prices went up! So stocks (mostly the defensive), are at the same level. Real Estate – almost double. Gold – Doubled. Gas – Double. Oil – Double.

Now our money. Went nowhere! Our money stayed the same! The Interest Rates and the Median Household Income hasn’t increased at all.

But so something else has. DEBT. Average Household Debt rose about 30%. Which brings me to only one conclusion which economists have been claiming for months:

It’s not our money. That household debt is not including that which may come from an inevitable decline in housing. Worse over, we have taken debt out of our homes and put it back into, stocks (the “safest” secutrity in the world) and goods and services (why GDP is doing so well).

If the Dow declined, everything else rose and then the Dow came up again, I don’t know about you but something says we’ve all been playing the same game, with lots of money in the middle… but it’s about time to show your cards.


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2 Responses to “”

  1. JJM Says:

    so debt goes up by $2000 and housing values go up by $94000 , why are people crying so much , it’s utterly insane

  2. my1ambition Says:

    The problem isn’t the $2000, its the fact that the debt exists at all (China now has surplus of just under $1 Trillion).

    And Housing? As long as they don’t mind when it comes down $94,000 I’m ok with it too.

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