When it comes to explaining what’s going on in the world, the news media probably does the absolute worst job in stories about financial matters.
Everything is centered around a few of stock market indexes and assorted government statistics, none of which really seem to reflect the reality of the world most of us live in.
That’s all just a feeling, of course, and I couldn’t explain the details of what’s wrong with the reporting. But NYC Educator does a great job of it.
What’s going on here that so many Americans can be so pessimistic about the future and gloomy about the direction of the economy while unemployment and inflation are so low and the financial markets are doing so well?
The answer lies in two rarely stated truths:
The first is that the economic gauges/numbers the government uses to measure unemployment, inflation, home sales and the like are rigged and manipulated to make conditions look better than they really are.
The second is that Wall Street doesn’t need the people on Main Street to be doing well financially to do well itself. In fact, Wall Street tends to do better when people on Main Street are getting screwed (for example, watch what happens to a stock when a company announces lay-offs or wage cuts; also watch what happens to stocks when the government announces consumer debt has increased and savings decreased…)
I don’t know if NYC Educator has a background in economics, but it doesn’t matter. This post makes a whole lot more sense than anything I’ve seen on any news program, financial or other.