posted on Mar, 6 2013 @ 12:27 PM
The DJIA is a collection of about 30 or so blue chip stocks. It is not an indicator of economic health. This notion that it is an indicator of
economic health is perpetuated by some crazy, ignorant game of telephone initiated by talking heads.
There are two reasons why the index is hitting record highs:
1. Capital is cheaper than it has ever been. Corporations can borrow money at nearly zero cost.
2. Unemployment is relatively high. This shrinks the cost of labor.
When you put these two reasons together, these corporations are able to maximize their profit like never before. This drives up the price of the
As you can see, the DJIA is not in fact an indicator of economic health. Our money is near worthless, and no one can demand more of it for their
labor. Our economy is not healthy.
edit on 6-3-2013 by MisfitToy because: misspelled word.