In yet another setback for the crisis-seeing left, stocks close at another record high. All this media fuss over ISIS, Iraq, and Ukraine has absolutely no impact on S&P 500 profits & earnings which is why Wall St. is ignoring it. Just noise that investors should tune-out. Google and Facebook don’t care. Whatever happens in the Middle East isn’t going to stop people from clicking Google ads or uploading picture to Facebook. Fox News, one of the few examples of fair and balanced media, is right about this still being the Bush/Bernanke bull market.
But the left also insists that this rally is due to QE, but this is also wrong, because small business and consumer lending is still at levels well-below the pre-recession peak:
By depressing rates, the main function of QE is to discourage the hoarding of cash by make riskier asset classes such as stocks, municipal bonds and real estate more compelling by comparison. By that measure, QE was a huge success, creating a up to a trillion dollars of wealth in the form of rising asset prices. The economy, especially large caps and web 2.0, is doing just fine even if the banks are lending much less. This is actually good news because, as we saw in 2007 and in 1987, an influx of bad loans tends to precede market tops. That’s why I’m a fan of the Fed, because unlike the typical useless democratic politician and their pursuit of wealth spreading and regulation, the Fed creates an economic environment conducive to the creation wealth. That’s why the floor of the NYSE gave thunderous ovation to Bernanke when he stopped by. 4chan is right about the fed doing a good job and ,like myself, want to control entitlement spending for the parasitic class. This is why we’re in a smartist era because economic policy is making smart people richer for the economic value they create.
A bet against the stock market is a bet against the brightest minds of America. It’s a bet against consumer spending, exports, profits & earnings, IQ, web 2.0, smart people, and technological & economic innovation. You can be a loser like the liberals on Businessinsider and Huffingtonpost who insist the market is too high and the economy is weak because not enough jobs are being created, or you can be a winner who buys the dips and makes money. This is the biological determinism/Social Darwinism bull market. From web 2.0 to Bay Area real estate and private equity, high IQ people are making dynastic wealth with no end in sight. This is how America should be – a nation that rewards success and exceptionalism under a meritocracy and a free market. In fact, it’s not a matter of ‘should’; it’s already that way.
All over social media such as Reddit, 4chan and Buzzfeed, everyone is on board the biological determinism point of view because it’s the correct one. The theory that millions of people are unable to participate strong economic recovery because they aren’t smart enough is already starting to gain traction in academic circles. If you’re in debt and cannot find a good paying job because you majored in something worthless, it’s your fault. People who are getting displaced due to surging rents are losers and should have gotten a better paying job. Don’t blame landlords; blame your lack of intelligence for being in the economic predicament you’re in. Whether it’s Wall St., Washington, Ivy League elitism, the Federal Reserve, web 2.0 or the rich, millions of people looking for someone to blame but themselves. In the ownership society we find ourselves in today, there are makers and takers, and Obammi is obviously allied with the later.
Tesla, Uber, Snapchat, Facebook, Tinder, Air B&B, and Pinterest – the valuations of these companies keep going up. This is the high-IQ American meritocracy as epitomized by the ‘new rich’, where anyone with some coding and a good idea can become a millionaire overnight and a billioniare in a couple years.
Given their immense influence and wealth, Elon Musk and Mark Zuckerberg are unofficial ‘presidents of the United States’, with the Silicon Valley and Wall St. as the 4th branch of government. In an era where transparency is the new currency, social media is the new department of the treasury. While Obama, the empty suit and habitual golfer, losses his influence as his approval rating keeps making new lows, these titans of technology and business are shaping policy to their own financial gain through tax inversions and expatriated profits that the wealth spreader in chief is powerless to stop. I would even go so far as to say we’re in a technocratic rapture that will culminate with eternal salvation for some once the ‘singularity’ is achieved. Transhumanism means the most productive, useful members of society won’t have to accede to the unenlightened. But depending on estimates, the singularity won’t occur for at least a several decades. In the meanwhile, free market capitalism will continue to eat the world, creating new industries and destroying obsolete ones.