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Filed under: Reactive Thoughts
Big Daddy Fed Doesn’t Care About You
America has two economies — and one is eating the other
A Tale of Two Economies
It’s the best of times, it’s the worst of times. It’s a time of steady income, it’s a time of unemployment. It’s a time of financial joy, it’s a time of financial suffering. It’s a time of rescue, it’s a time of abandonment. Exactly how you’re experiencing this massively disconnected dichotomy, though, depends on whether or not you’re an investor.
Liberal or Conservative, Jew or gentile, introvert or extrovert — you either have a portfolio or you don’t.
Most of us primarily live and work in the “real economy”. In the world of finance and investments, that’s what it’s actually called: “The real economy”. What does that mean? Well, if every part of your life is spent in the real economy, you’re probably struggling right now. Many in the other economy — the financial economy — mostly are not.
If you work most days, live paycheck to paycheck, and have little to no money in a 401(k), you’re squarely in the real economy.
If you’re a trust fund baby who inherited a lot of wealth, never worked a day in your life, yet keep making money on interest and…
