|
My "calculations" were so rough so as not to be worthy of the name.
The point I am trying to make is one of perception, not hard cold data. Many american citizens wouldn't know what to do with a fraction of the available market indicators. But they are fed a constant stream of blather about the Dow. Regardless of what level it is at. If it is "low" the anchorperson looks grim. If it is "high", the anchorman is smiling. Thats the economic weathervane for most of the population.
The fact that we are back up closer to the "magic numbers" of better times is interpreted by the average joe as meaning that we are back to the same economic position as the last time we had that "magic number".
Seeing we're back up 10,000, Joe Consumer thinks the worst is past, the economy is improving, and maybe he CAN afford that new truck now. When in reality the fundamentals of the economy are arguably in the crapper, and the dollar itself has depreciated quite a bit since the last time we saw those numbers. This is the bit that Mr. Everyman misses. And seeing how the market system cannot function without the participation (concious or no) of Everyman, his perceptions are critical to the continuing operation of the system.
And so he proceeds on an inaccurate interpretation of reality, compounded by the media cheerleaders who support those misconceptions with their odious spinning.
|