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View Diary: David Stockman: “get out of the markets and hide out in cash” Corruption Of Capitalism (122 comments)

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    DBunn, RichM, blue aardvark
    Since the S&P 500 first reached its current level, in March 2000, the mad money printers at the Federal Reserve have expanded their balance sheet sixfold (to $3.2 trillion from $500 billion).
    Stockman seems to imply that the S&P 500 is artificially inflated by the Fed Balance sheet. I'm not if this is true -- most of the Fed Balance is holding bonds of various flavors and the dollars are sitting in bank vaults. Not sure how he draws the connection to the S&P 500.

    The reason why the S&P is bloated on anemic growth has entirely to do with inequality of distribution of rewards.

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