Welcome to DU! The truly grassroots left-of-center political community where regular people, not algorithms, drive the discussions and set the standards. Join the community: Create a free account Support DU (and get rid of ads!): Become a Star Member Latest Breaking News General Discussion The DU Lounge All Forums Issue Forums Culture Forums Alliance Forums Region Forums Support Forums Help & Search

xchrom

(108,903 posts)
Sat Mar 30, 2013, 10:15 AM Mar 2013

poor folks don't care about the stock market rally

http://www.nationofchange.org/poor-folks-don-t-care-about-stock-market-rally-1364650915



I fit in with the other 40 percent of Americans who really and truly don’t give a fuck about the S&P 500 and Dow Jones both hitting all-time record highs this month. The rest of us who don’t draw income taxes at a preferential rate by throwing numbers at each other in space can barely keep up with basic necessities, much less have anything left to invest.

After my seasonal political work ended last November (successfully ousting a Tea Party congressman from office and helping out on the Jill Stein campaign as her debates organizer), I’ve been supporting myself with writing. And I know that out of rent, utilities, a car note, groceries, medical bills, gas, moving expenses and a smartphone, one of those bills won’t get paid on a freelancer’s income. I’ve most recently learned how to do without the smartphone, as my service was finally shut off after not being able to pay the bills that have piled up. And because I have a roof over my head and a vehicle, and no student debt nor children to care for, I’m still in a far better financial situation than most Americans.


In the last 40 years, income for the bottom 90 percent of Americans only rose by $59. Income for the top 10 percent rose by more than $116,000. David Cay Johnston noted that on a chart, if the $59 increase was marked by 1 inch, the 84 percent increase in income for the top 10 percent over that same time period would be 163 feet. The top 1 percent’s increase in income would be marked by a line 884 feet high on that same chart. And for the Mitt Romney class, whose average 2011 income was roughly $23 million, the increase over that 40-year period would be nearly 5 miles high. This recent viral video attempts to illustrate those differences. And when you factor in how much the cost of living has risen, that $59 increase would buy far less now than it did 40 years ago. It doesn’t take a math whiz to see that the vast majority of us are being bled dry by an insatiably greedy few at the top.

The problem is, those bleeding us dry don’t see it that way. The corporate executives and Wall Street hedge fund managers, the richest one of whom makes as much in ONE HOUR as the typical family would earn in 29 YEARS, glorify the concentration of wealth into the hands of a few. They’re of the belief that poor and middle class people don’t know how to manage resources or invest money, let alone save it. They believe that the 1 percent who owns 42 percent of all financial wealth in this country deserves it, because they’re the best to manage those resources. The game of capitalism isn’t of human empathy or compassion, but of cold calculation. If they can find ways to rob you of your home, job, pension and savings, then you probably didn’t deserve to have it anyway, and they did. They will continue behaving this way and find ways to rob us even more efficiently until we all collectively stop them from being able to do so.
41 replies = new reply since forum marked as read
Highlight: NoneDon't highlight anything 5 newestHighlight 5 most recent replies
poor folks don't care about the stock market rally (Original Post) xchrom Mar 2013 OP
Well put... 99Forever Mar 2013 #1
i have money in the stock market. i'm not 'very rich'. spanone Mar 2013 #6
Well then... 99Forever Mar 2013 #14
you REALLY need to take some reading comprehension classes Skittles Mar 2013 #26
And you REALLY need to be ignored. 99Forever Mar 2013 #28
AW POOR BABY!!!!!!!! Skittles Mar 2013 #29
Oh spare me leftynyc Mar 2013 #31
that one f***ing strange Skittles Mar 2013 #39
Did ya make a whole big whopping $15 a month? Spitfire of ATJ Mar 2013 #20
I hear you spanone Skittles Mar 2013 #27
Unions and pensions depend on the stock market so their people have more than Social Security dkf Mar 2013 #36
Smart people don't care about the stock market rally. Blanks Mar 2013 #2
If the stock market never works out for middle and working class people hughee99 Mar 2013 #8
Message auto-removed april dreamweaver Mar 2013 #12
It does work out for working class people, just not to the extent it enriches the already rich. dawg Mar 2013 #15
Rising stock values don't do you any good... Blanks Mar 2013 #30
True. dawg Mar 2013 #32
It's probably too early to predict a correction. Blanks Mar 2013 #33
Pension Funds are a great way to launder money. Spitfire of ATJ Mar 2013 #21
People are morons. Blanks Mar 2013 #25
Buy low and sell high, that's how you make money in the market. dawg Mar 2013 #10
DOW = bogus stats. They are not at record highs ...given "inflation". L0oniX Mar 2013 #3
Gee, L0oniX. Hate the game ... dawg Mar 2013 #5
No player = no game. n/t L0oniX Mar 2013 #7
Okay. But I just make "bets" on Fortune 500 companies ... dawg Mar 2013 #11
...but then you will hurt the gamblers. n/t L0oniX Mar 2013 #13
The DOW used to be known as a production indicator.... Spitfire of ATJ Mar 2013 #23
Recommend jsr Mar 2013 #4
I think that every time I see a post about how great market is. Zax2me Mar 2013 #9
It's a little bit satisfying to me that some people missed out on making a bunch of money ... dawg Mar 2013 #18
Damn Skippy! nt MrScorpio Mar 2013 #16
What about the ProSense Mar 2013 #17
This is true, but we should have another way for pensions, etc. freshwest Mar 2013 #41
They should. gulliver Mar 2013 #19
I'm poor and I care... ileus Mar 2013 #22
One of the biggest cons ever was the rich claiming the Depression was caused by the crash of 29... Spitfire of ATJ Mar 2013 #24
The rub is, of course... ElboRuum Mar 2013 #34
Fuck the stock market. moondust Mar 2013 #35
No..they can hire security. It's only poor schmucks who can't afford guards who will be sol. dkf Mar 2013 #37
Yeah but... moondust Mar 2013 #38
There's a stock market rally? Probably because they made workers do more for less pay. craigmatic Mar 2013 #40

99Forever

(14,524 posts)
1. Well put...
Sat Mar 30, 2013, 10:22 AM
Mar 2013

... which is why every time some clown posts how "great the stock market is doing" crap, it makes a fair number of us say so "so what?" or worse. It simply means the very rich just got very richer to most of us.

99Forever

(14,524 posts)
14. Well then...
Sat Mar 30, 2013, 12:39 PM
Mar 2013

... everything must be just fine for all of us. Pardon me for stating mine and many others opinion that have to "invest" what little money we do have into just staying alive.

Skittles

(153,164 posts)
26. you REALLY need to take some reading comprehension classes
Sat Mar 30, 2013, 03:04 PM
Mar 2013

your "conclusions" are SO far off the mark they are laughable

 

leftynyc

(26,060 posts)
31. Oh spare me
Sat Mar 30, 2013, 03:15 PM
Mar 2013

Plenty of us on this board have money in the market and we got our asses kicked when the market crashed. The market rebounding has helped plenty of people you seem to want to dismiss because they have more than you and you behave as if this makes you a better Democrat which what is truly laughable. And most of us can in no way be defined as rich.

Skittles

(153,164 posts)
39. that one f***ing strange
Sat Mar 30, 2013, 11:00 PM
Mar 2013

always coming to weird "conclusions" that are WAY off the mark - I'm beginning to really wonder

 

dkf

(37,305 posts)
36. Unions and pensions depend on the stock market so their people have more than Social Security
Sat Mar 30, 2013, 05:43 PM
Mar 2013

in their old age.

Individuals also save in their 401ks but they aren't as lucky as those with pensions.

The travesty is if only the rich benefit. The solution is to participate.

Blanks

(4,835 posts)
2. Smart people don't care about the stock market rally.
Sat Mar 30, 2013, 11:47 AM
Mar 2013

When the stock market is rallying is when it's time to get out.

When it's tanking is when it's time to get in. Buy low, sell high. The stock market never works out for middle and working class people.

How many times do they have to take advantage of 'investors' before people learn that the game is rigged.

hughee99

(16,113 posts)
8. If the stock market never works out for middle and working class people
Sat Mar 30, 2013, 12:31 PM
Mar 2013

why do pension funds continue to invest there?

Response to hughee99 (Reply #8)

dawg

(10,624 posts)
15. It does work out for working class people, just not to the extent it enriches the already rich.
Sat Mar 30, 2013, 12:43 PM
Mar 2013

I think the main point is not so much market valuations, but the fact that companies are thriving while the work force continues to suffer. Cash is piling up in corporate accounts while people on main street are doing without.

Rising stock values are a good thing, but you have to have money to invest in the first place in order get any benefit.

Blanks

(4,835 posts)
30. Rising stock values don't do you any good...
Sat Mar 30, 2013, 03:10 PM
Mar 2013

Unless you're getting out. I know you already know that from a different post of yours, but if my investments are worth a thousand dollars more than what I have invested, it isn't worth anything unless I sell it. Tomorrow - I could lose it all and then some.

When the stock market starts to go up, that means that 'they' are fixing to fleece the new generation of investors unfamiliar with history.

I'd guess about 4 or 5 years, and then in September or October look for it to crash again.

dawg

(10,624 posts)
32. True.
Sat Mar 30, 2013, 03:16 PM
Mar 2013

Until you cash out, you really haven't won anything.

I tend to view stocks as part-ownership in the underlying businesses. And once the valuation gets higher than I think is warranted by the fundamentals of the company, I sell.

I'll go to all cash if I think the situation calls for it. And I don't think it is time to do that yet, but I do feel more nervous than I have felt in quite some time. If I were closer to retirement, I would be raising lots of cash right now. But since I'm not, I figure I probably have plenty of time to ride out the eventual "correction" and still come out ahead.

Blanks

(4,835 posts)
33. It's probably too early to predict a correction.
Sat Mar 30, 2013, 03:26 PM
Mar 2013

This time it might happen toward the end of August (in whatever year it happens). I only know that there will be a correction.

I expect a person could graph the rise and fall of the stock market and develop a model where you could predict the year of the next correction, of course certain industries are going to do worse than others based on their product's potential future market.

I'm told that Joe Kennedy cashed in his stocks when his 'shoe shine' started talking stocks to him. That's when you know it's time to get out, when it's so popular to be in, that the kid mowing your lawn has stocks.

dawg

(10,624 posts)
10. Buy low and sell high, that's how you make money in the market.
Sat Mar 30, 2013, 12:32 PM
Mar 2013

The time to go all-in was four years ago. Conservative ideology - especially lack of adequate regulation - led to a financial disaster in 2008. Lots of people were terrified by the election of that socialist muslim commie athiest black guy, so they pulled their money out of the market and stayed out.

I knew that the steady, fiscally moderate, pragmatic man we elected could be nothing but a positive for the market, so I put my money where my mouth was and I doubled it.

Now, things are looking a little top heavy. I'd give a serious look at pulling anything out that wasn't invested for the true long-term.

 

L0oniX

(31,493 posts)
3. DOW = bogus stats. They are not at record highs ...given "inflation".
Sat Mar 30, 2013, 12:22 PM
Mar 2013

The DOW and all who make their money with it can go to hell.

dawg

(10,624 posts)
11. Okay. But I just make "bets" on Fortune 500 companies ...
Sat Mar 30, 2013, 12:34 PM
Mar 2013

the real way they are empowered is when we buy their products. Stop buying their products, and then you will have accomplished something.

 

Spitfire of ATJ

(32,723 posts)
23. The DOW used to be known as a production indicator....
Sat Mar 30, 2013, 01:25 PM
Mar 2013

Back when it really was the Dow Jones Industrial.

It was a select group of the top industries and was a measure of the sales of actual, physical products made by workers and sold to the public and overseas. That was back when the workforce had a seat at the table.

Now the DOW has things like BofA, insurance companies, Big Pharma, Big Oil and Walmart as indicators.

 

Zax2me

(2,515 posts)
9. I think that every time I see a post about how great market is.
Sat Mar 30, 2013, 12:31 PM
Mar 2013

With 'take that' republicans and graphs attached.
I just think how does this help anyone really hurting in this country?

dawg

(10,624 posts)
18. It's a little bit satisfying to me that some people missed out on making a bunch of money ...
Sat Mar 30, 2013, 12:48 PM
Mar 2013

because of their ridiculous teabagger political beliefs and fear of our "wildly liberal" President.

But, you are right, the rise in the markets is meaningless to most people's ordinary lives.

ProSense

(116,464 posts)
17. What about the
Sat Mar 30, 2013, 12:46 PM
Mar 2013

"I fit in with the other 40 percent of Americans who really and truly don’t give a fuck about the S&P 500 and Dow Jones both hitting all-time record highs this month....In the last 40 years, income for the bottom 90 percent of Americans only rose by $59. Income for the top 10 percent rose by more than $116,000."

...other 50 percent in that 90 percent? Do they care? A lot of pensions were affected by the economic crisis.

The Origins and Severity of the Public Pension Crisis

February 2011, Dean Baker

There has been considerable attention given in recent months to the shortfalls faced by state and local pension funds. Using the current methodology of assessing pension obligations, the shortfalls sum to nearly $1 trillion. Some analysts have argued that by using what they consider to be a more accurate methodology, the shortfalls could be more than three times this size. Based on these projections, many political figures have argued the need to drastically reduce the generosity of public sector pensions, and possibly to default on pension obligations already incurred.

This paper shows:

  • Most of the pension shortfall using the current methodology is attributable to the plunge in the stock market in the years 2007-2009.

  • The argument that pension funds should only assume a risk-free rate of return in assessing pension fund adequacy ignores the distinction between governmental units, which need be little concerned over the timing of market fluctuations, and individual investors, who must be very sensitive to market timing.

  • The size of the projected state and local government shortfalls measured as a share of future gross state products appear manageable.

http://www.cepr.net/index.php/publications/reports/the-origins-and-severity-of-the-public-pension-crisis


Public Pension Shortfalls Misrepresented in Budget-Crisis Debate

WASHINGTON, DC: With many state governments facing budget shortfalls this year along with dwindling federal assistance, some policy-makers have begun to call for drastic reductions of public sector pensions as a way to ease state budget woes. A new report from the Center for Economic and Policy Research puts this issue into better perspective, clearing up many common misconceptions about these funds.

The report, “The Origins and Severity of the Public Pension Crisis,” shows that the main reason public pension shortfalls exist at all is the downturn in the stock market following the housing crash in 2007-2009, not inadequate contributions. The paper demonstrates that if pension funds had just earned returns equal to the interest rate on 30-year Treasury bonds since 2007, their assets would be more than $850 billion greater than they are today.

“Much of the recent discussion of public pensions is misleading,” said Dean Baker, a co-director at CEPR and author of the report. “The shortfalls represent a small percentage of each state’s economy and, barring another sudden reversal of the stock market, are manageable.”

- more -

http://www.cepr.net/index.php/press-releases/press-releases/pension-shortfalls-misrepresented-in-budget-debate



freshwest

(53,661 posts)
41. This is true, but we should have another way for pensions, etc.
Sun Mar 31, 2013, 01:14 AM
Mar 2013

Wall Street and Main Street, if they ever really had a healthy connection, seems to have lost it altogether. The many threads in our society, of those who work and were able to save - who are not the the enemy, or been employed by those got money to start up businesses from the firms that make up Wall Street and other groups, see their labor and efforts played with what feels like a casino.

It is not, when one considers those individuals who each and every one singly put in years of work to have the advantages they should get from that work - healthcare, homes, vehicles, education for their children (if possible) and a nest egg to retire with, usually their home, their biggest investment that sees them through their latter years without asking for help, is important.

People vote according to these things. It's hard as hell to get people to give those things up, nor should they. But the mixed system that gave us so much flexibility as individuals, public education, small loans, home loans, insurance, health care, annuities and other things to tide us through rough times, all built on the back of unions and a good manufacturing base are in disarray in many areas.

The tax base that kept up roads, schools, hospitals and services has been eroded. And hanging above it all is the sense that we have been cheated - but the fingerpointing often finds a focus that is not the real one.

From what I've seen in the last decade or more, Americans are so propagandized that they are no longer capable of seeing the big picture except the ones sold by conspiracy pundits. And they have their agendas, too.

I think the best thing we've got going is what we've always had - those who are coming up with new ideas of how to live with less, be more green and what will in the end, be an educated group of people who do go all the way to get things done.

And then the cycle begins all over again, as they will benefit from the stock market when they become the new elites that people love to hate.

Damn, it's complicated.

gulliver

(13,181 posts)
19. They should.
Sat Mar 30, 2013, 12:54 PM
Mar 2013

When house prices are up and investments are doing well it makes people feel like spending. That generates demand, and that helps poor people.

Government is the key player in making things better. The democracy needs to decide what the "general welfare" means.

ileus

(15,396 posts)
22. I'm poor and I care...
Sat Mar 30, 2013, 01:13 PM
Mar 2013

that's where my 403b sits...I don't want to lose another 20k like in the last bubble.

 

Spitfire of ATJ

(32,723 posts)
24. One of the biggest cons ever was the rich claiming the Depression was caused by the crash of 29...
Sat Mar 30, 2013, 01:35 PM
Mar 2013

The Depression was going on long before that for most Americans. The crash of 29 was not the cause but the effect of letting things run themselves. Keep in mind that the Stock Market neither makes nor loses money. It trades in paper with the number of shares printed on it and the value of those shares are in constant flux. It actually benefits Wall Street for money to be rare for the rest of us because rarity increases value.

ElboRuum

(4,717 posts)
34. The rub is, of course...
Sat Mar 30, 2013, 03:29 PM
Mar 2013

...the stock market was supposed to be the way for companies looking for capital investment to go to the public rather than the banks. This capital investment was supposed to be just that, investment. This investment typically was used to grow a company's market share and, in so doing, create a situation whereby to meet demand, people would be hired as a result.

In truth, though, modern iterations of corporate management place way too much emphasis on cost cutting and cash management rather than growth, all to show good bottom lines to their short-term high-stakes gambler investors. The 'investment' ends up being the cream off the top used to pay exorbitant executive salaries, rather than reinvesting the in the company's production base, and therefore, its worker base. What large scale investors really look for these days is short term investment in companies which turn in good profits by cutting costs, not necessarily those with long term profitable visions, as the investor him/herself is a short-term gambler already. Invest a pile in a company. Company lays off 10% percent of its employees, cutting costs and making the bottom line look good for investors, company shows profit for the quarter, executives take a piece of the investment, investors bug out having made a tidy profit. Lather rinse repeat.

The so called investor class have turned the stock market into a casino, where betting against corporate success is as lucrative as betting for it, maybe even moreso. Were it different, maybe Main Street would have more to be excited about if the stock market rallies.

moondust

(19,988 posts)
35. Fuck the stock market.
Sat Mar 30, 2013, 04:04 PM
Mar 2013

Stock markets are largely responsible for the massive concentration of wealth over the past 30-40 years that has sucked the life and health out of the people and the environment. It was a big mistake to surrender so much control of so much of the economy to corporations and their incentivizing/punishing stock market casinos. Both political parties have had a hand in it; some would say out of pure self-interest, to hell with "The People."

Incidentally, I'm guessing that one of the more hidden drivers behind the NRA and the out-of-control gun culture is the "economic royalty" and robber barons who demand uninhibited maximum protection from their many victims who may one day wake up and decide they want it back.

 

dkf

(37,305 posts)
37. No..they can hire security. It's only poor schmucks who can't afford guards who will be sol.
Sat Mar 30, 2013, 05:53 PM
Mar 2013
Latest Discussions»General Discussion»poor folks don't care abo...