It's the Economy Stoopid

[Anonymous]

A report the Federal Reserve released on Monday shows the wealth gap narrowed between 2016 and 2019:

“Families at the top of the income and wealth distributions experienced very little, if any, growth” in net worth between 2016 and 2019 “after experiencing large gains between 2013 and 2016,” while “families near the bottom of the income and wealth distributions generally continued to experience substantial gains.”

....

Between 2016 and 2019, white, wealthy and college-educated households had relatively less income growth than other groups, the Fed notes, adding that “more broadly, the income gaps between families with a college degree and those without one decreased.” Real median incomes grew 9% for Americans who haven’t completed high school and 6.3% for those with only a high-school diploma while declining 2.3% among those with a college degree.

...

The Fed also reports growing wealth among lower-income Americans. Net worth (assets minus debt) increased 32.5% among the lowest income quintile and 30.7% among the second lowest, while declining modestly for the upper crust. The latter may be due to older Americans with more financial assets shifting to bonds from equities as they near retirement. Net worth also increased among blacks (32.1%) and Hispanics (63.6%) compared to whites (4%).

...

About 14.5% of Americans in the lowest income quintile owned corporate stocks in 2019, up from 11.5% in 2016 and 12.3% in 2010.

(Quotes come from the Federal Reserve report).

https://www.wsj.com/articles/the-wealth-gap-shrinks-11601420393

[Anonymous]

Anonymous wrote:A report the Federal Reserve released on Monday shows the wealth gap narrowed between 2016 and 2019:

“Families at the top of the income and wealth distributions experienced very little, if any, growth” in net worth between 2016 and 2019 “after experiencing large gains between 2013 and 2016,” while “families near the bottom of the income and wealth distributions generally continued to experience substantial gains.”

....

Between 2016 and 2019, white, wealthy and college-educated households had relatively less income growth than other groups, the Fed notes, adding that “more broadly, the income gaps between families with a college degree and those without one decreased.” Real median incomes grew 9% for Americans who haven’t completed high school and 6.3% for those with only a high-school diploma while declining 2.3% among those with a college degree.

...

The Fed also reports growing wealth among lower-income Americans. Net worth (assets minus debt) increased 32.5% among the lowest income quintile and 30.7% among the second lowest, while declining modestly for the upper crust. The latter may be due to older Americans with more financial assets shifting to bonds from equities as they near retirement. Net worth also increased among blacks (32.1%) and Hispanics (63.6%) compared to whites (4%).

...

About 14.5% of Americans in the lowest income quintile owned corporate stocks in 2019, up from 11.5% in 2016 and 12.3% in 2010.

(Quotes come from the Federal Reserve report).

https://www.wsj.com/articles/the-wealth-gap-shrinks-11601420393

Now this? This is a signal to the economy’s health and viability. I‘m going to peel this onion slowly. But in general, this is good news for America financially, but horrible implications for America long term if it implies what I suspect. Of course portfolio values are also measured in wealth, so 30% growth isn’t surprising in an inflated stock market. and we know the stock market performed well but was and still is a house of cards (or paper bills) Most interesting data point to me is the decreased income gap between college/no-college households. I suspect it had to do with wages being low and a signal to the student loan crisis and forthcoming social security crisis.

Lowering rates to damn near zero, reducing red tape and regulation that removed organization operational cost contributed to this and shareholder returns, of course.

But the income changes, and the socioeconomic implications are very interesting. I’m also curious how much of this was inherited from the 08-16 presidential actions. Biden and Obama worked their ass off to save our country during the 2008 financial crisis that was inherited. It was a collective miracle we could all pull through when it was said and done. Not very confident that Teump has done anything to grow our economy in any way. He inflates stocks, but he doesn’t grow the garden.

[Anonymous]

[Anonymous]

Anonymous wrote:

And. This is the immediate tale from a devastating pandemic we aren’t even out of yet. We are only 6 months into it. And, this doesn’t factor in the economic destruction through market and policy manipulations occurring ‘016-‘020.. Sigh.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

And. This is the immediate tale from a devastating pandemic we aren’t even out of yet. We are only 6 months into it. And, this doesn’t factor in the economic destruction through market and policy manipulations occurring ‘016-‘020.. Sigh.

The St. Louis Fed is forecasting a 20% annualized increase in GDP for third quarter (as of September 25).

The Conference Board base (less optimistic) case forecast is a 32.9% increase (as of September 5).

So GDP was down in Q2 from Q1 about 7.8% and will be up in Q3 around 5% to 8.1%. In the latter case, the increase would more than erase the GDP decrease in Q2.

[Anonymous]

Another 837,000 Americans filed new unemployment claims last week.

That.....isn't an improvement.

[Anonymous]

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[Anonymous]

Anonymous wrote:

For those who do not understand the stock market is not the economy, please let this sink in. Disney announced that 28,000 people will go without a paycheck and the Disney stock rose 0.74%. That's good for Disney shareholders, not so good for 28,000 working people.

[Anonymous]

US adds 661,000 jobs vs. 859,000 expected.

[Anonymous]

Dow futures down sharply on news of Trump positive coronavirus test.

[Anonymous]

Unemployment rate at 7.9%, below estimates at 8.1%. Grinding out this recovery inspite of the Democrat shutdown.

[Anonymous]

Anonymous wrote:Unemployment rate at 7.9%, below estimates at 8.1%. Grinding out this recovery inspite of the Democrat shutdown.

That's a shade below the 8% rate of January 2013 and just over half of April 2020's 14.3% rate.

[Anonymous]

Anonymous wrote:Dow futures down sharply on news of Trump positive coronavirus test.

Back up on the news that Biden is negative.

[Anonymous]

Anonymous wrote:US adds 661,000 jobs vs. 859,000 expected.

Whoa. I had seen the first number but not the second.

[Anonymous]

Anonymous wrote:Unemployment rate at 7.9%, below estimates at 8.1%. Grinding out this recovery inspite of the Democrat shutdown.

Democrat shutdown? If Trump could have managed the virus, there would be NO shutdown. Instead, Donald is confined to quarters for now.