Stock market, bubbles, US economy, distribution of wealth...Americans=no savings

[Findingnemo]

Right, car loans. That explains everything.

I'll be sure to tell all the poor people I see, "just buy assets, not liabilities." I'm sure that'll solve their problem of having no money to begin with, and of wages stagnating behind inflation. I'm sure it'll reverse the course the American economy has been on since the 70s.

And also people forget about entrepreneurship, all they taught was how to be a slave/labor/employee forever which makes the issue in the wealth distribution.If people start their own business they can make something more when we compare it with their salary but most people afraid to begin with so they stuck there.

[exstasie]

Right, car loans. That explains everything.

I'll be sure to tell all the poor people I see, "just buy assets, not liabilities." I'm sure that'll solve their problem of having no money to begin with, and of wages stagnating behind inflation. I'm sure it'll reverse the course the American economy has been on since the 70s.

And also people forget about entrepreneurship, all they taught was how to be a slave/labor/employee forever which makes the issue in the wealth distribution.If people start their own business they can make something more when we compare it with their salary but most people afraid to begin with so they stuck there.

There are ~30 million small businesses in the US, employing ~60 million employees or roughly 1/2 the entire workforce. https://www.sba.gov/sites/default/files/advocacy/United_States.pdf

That means on average, each self-employed business owner employs one other worker. And that applies to half the labor force. That doesn't seem like a shortage of entrepreneurship at all.

I don't understand this attitude that "everyone should start their own business" either. Most startups fail. There is nothing fundamentally wrong with getting a job. Most business models require workers to succeed.

Your advice might have been useful in the 1950s but this "pull yourself up by the bootstraps" stuff isn't very convincing in the face of the economic realities of 2020.

[btcgolong]

Do you think things are looking better? Stimulus cash went into the stock market and people paid off credit card debt...small positives things happening for some people.

[Hydrogen]

Without getting political...it seems every 10 or so years we see another bubble burst, my question to you economic experts:

The basic anatomy of a bubble is identical to pump and dump cycles present in cryptocurrency trading since day 1.

A bubble occurs when pre miners attempt to unload significantly overpriced assets onto the market.

Whether they're selling an ICO that claims to cure cancer via colloidal silver, some derivative of student loan debt or subprime mortgage CDOs. There isn't necessarily a relevent difference there.

[BrewMaster]

every day i become more sure that a new economical disaster is coming whereas before i wasn't. now with the stock market booming, i am more suspicious that it is indeed a pump. some users already mentioned that it is not average Joe's money but the whales, but such pump is going to attract the average Joe too and then as whales pumped it well and attracted enough newbies they dump to make the most profit while exiting and letting the economy crash while they move to safer assets that rise during the crash (food industry, pharmaceuticals since we are in a pandemic, gold and of course bitcoin).

[South Park]

Do you think things are looking better? Stimulus cash went into the stock market and people paid off credit card debt...small positives things happening for some people.

Things did not got better, governments around the world are just delaying the inevitable, to understand that we need to get into the minds of politicians, the truth is that politicians are only looking after themselves and their political parties and they care about their internal and external power struggles leaving the well being of their populations very far away in their minds, as such politicians have an incentive to try to avoid an economic crisis on their watch but they have no incentive to prevent it because if they happen to be opposition when the economic crisis happens then they have a lot of ammunition to shoot at the political party in turn and then get yet another turn at being the ones with all the power.

[exstasie]

every day i become more sure that a new economical disaster is coming whereas before i wasn't. now with the stock market booming, i am more suspicious that it is indeed a pump.

What does that really mean though? Hasn't it been pumping like this for decades? Just looking at the price action since 2009, everything looks quite normal:



Every correction is a shakeout. The Fed rescues the market every time. I don't think this is an exit pump. If anything, the March crash was institutions shaking out the weak hands, retail investors, etc. and buying on the cheap.

some users already mentioned that it is not average Joe's money but the whales, but such pump is going to attract the average Joe too and then as whales pumped it well and attracted enough newbies they dump to make the most profit while exiting and letting the economy crash while they move to safer assets that rise during the crash (food industry, pharmaceuticals since we are in a pandemic, gold and of course bitcoin).

So you're expecting the stock market to crash, while gold and BTC rise?