Like the China manipulation theory, it all comes down to "show me the money". China's problems and their inability to control it is very apparent now. Seems once one myth is dispelled we use other examples to continue to prove the same misguided point.
The fake economy had a GDP of over 3 percent. the fake economy has a service sector on FIRE! You can't have company profits and real jobs with fake data. Impossible!
The landscape of the US economy has changed dramatically from 50 years ago, and not for the better. That doesn't negate the reasons why a P/E ratio of 16 is considered not to be expensive.
I love it when people dismiss the last few decades of real corporate profits by stating it is all faked. No it is all changed. It certainly isn't based on cash or backed by gold. Credit has taken over the means for our maintaining a certain livelihood. That means is still with us and until it creates a real problem we will continue to see this get worse.
Just because we are riding on a river that has a waterfall along its path doesn't mean we are at that waterfall. This has taken much longer than most want to admit and I suspect it will take even longer than people are willing to accept. We are not in any danger YET of seeing our credit structure fall apart.
Enjoy the show while you can. Imagine all the wasted years worrying about something that hasn't materialized in this past decade.
This message will not get to "imiloa" because I seemed to insult his ego. I write it anyway just because of my compulsive nature.
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