WALL STREET - The New Bubble

Now on the Cathedral of Greed, Wall Street, where they never learn....

"Bubble in the making?  How the stock market might not reflect the current economy" PBS Newshour 11/22/2013

Excerpts

SUMMARY:  At the New York Stock Exchange, the Dow ended above 16,000, another record high.  Meanwhile, companies continue to report healthy profits.  And yet the recovery is weak and unemployment is high.  Economics correspondent Paul Solman looks for answers and asks whether the Federal Reserve's stimulus has had the impact it intended.

JUDY WOODRUFF (Newshour):  This has been a notable week for the stock markets, particularly for the Dow Jones industrial average, the benchmark index that's closely monitored and that's reaching new milestones.

But there are questions about what's behind the rally of late and whether it reflects the fundamentals of the economy.

NewsHour economics correspondent Paul Solman hit the trading floor yesterday in search of some answers.

The story is part of his ongoing reporting Making Sense of financial news.
----
PAUL SOLMAN (Newshour):  And so companies can pay labor less (for workers), keep more for themselves and their mostly wealthy shareholders.  Yes, half of us own stock, if you include our pension funds.  But the top 10 percent own something like 90 percent of the stock market; the top 1 percent something like 40 percent of it.