<div dir="auto">Yes, it just means that the .45 T that the Fed gave to banks & corporations is collateral for them to borrow 10 times that, 4.5 T. That will be used not in productive investment, but to maintain the appearance of fiscal health. The cute Ruedi family is concerned that our 1% neighbors might get the jitters and put their money into gold or mattresses, not good for the wealth management business. Thus they have been buying a page in the Sunday paper as an advertisement for the stock market, although it's not labelled as such. Blatant but not surprising. There's a chance it will come crashing down anyway, in which case the News-Gazette will have to sell the space to Prairie Fruit Farm, because everyone south of Windsor will be going there to live off the land. Just a heads up.<div dir="auto"><div dir="auto"><br></div></div></div><br><div class="gmail_quote"><div dir="ltr" class="gmail_attr">On Wed, Jun 10, 2020, 4:09 PM Karen Medina via Peace-discuss <<a href="mailto:peace-discuss@lists.chambana.net">peace-discuss@lists.chambana.net</a>> wrote:<br></div><blockquote class="gmail_quote" style="margin:0 0 0 .8ex;border-left:1px #ccc solid;padding-left:1ex"><div dir="ltr"><div dir="ltr">David, Thanks for putting all the US$ into the same terms. That does help.<div><br></div><div>Could you explain the debt leverage?</div><div>This is what I found :</div><div>What is debt leverage?</div><div>"Leverage, in business terminology, really just means debt. It's the borrowing of funds to finance the purchase of inventory, equipment, and other company assets. ... Using debt increases the company's risk of bankruptcy but can also increase the company's profits and returns; specifically its return on equity. "</div></div></div><br><div class="gmail_quote"><div dir="ltr" class="gmail_attr">On Wed, Jun 10, 2020 at 3:40 PM David Green via Peace-discuss <<a href="mailto:peace-discuss@lists.chambana.net" target="_blank" rel="noreferrer">peace-discuss@lists.chambana.net</a>> wrote:<br></div><blockquote class="gmail_quote" style="margin:0px 0px 0px 0.8ex;border-left-width:1px;border-left-style:solid;border-left-color:rgb(204,204,204);padding-left:1ex"><div dir="auto"><div>Mort, you should have majored in physics.<br><br><div class="gmail_quote"><div dir="ltr" class="gmail_attr">On Wed, Jun 10, 2020, 2:20 PM Brussel, Morton K via Peace <<a href="mailto:peace@lists.chambana.net" target="_blank" rel="noreferrer">peace@lists.chambana.net</a>> wrote:<br></div><blockquote class="gmail_quote" style="margin:0px 0px 0px 0.8ex;border-left-width:1px;border-left-style:solid;border-left-color:rgb(204,204,204);padding-left:1ex">
<div style="word-wrap:break-word;line-break:after-white-space">
It is good that David keeps writing, but just how many people will understand his sentence:
<div><br>
<div><span style="color:rgb(68,68,68);font-family:"Noto Serif",serif;font-size:16px;background-color:rgb(255,255,255)"> But that $.45 trillion can/will be debt-leveraged by
10 times, meaning that $4.5 trillion dollars has been/will be printed for corporations and banks.</span></div>
<div>
<div><font color="#444444" face="Noto Serif, serif" size="3"><span style="background-color:rgb(255,255,255)"><br>
</span></font></div>
<div><font color="#444444"><span style="background-color:rgb(255,255,255)"><font face="Noto Serif, serif">I</font> didn’t.</span></font></div>
<div><font color="#444444" face="Noto Serif, serif" size="3"><span style="background-color:rgb(255,255,255)"><br>
</span></font></div>
<div><font color="#444444"><span style="background-color:rgb(255,255,255)">— Mort</span></font></div>
<div><font color="#444444" face="Noto Serif, serif" size="3"><span style="background-color:rgb(255,255,255)"><br>
</span></font></div>
<div><br>
<blockquote type="cite">
<div>On Jun 10, 2020, at 8:00 AM, Karen Aram via Peace <<a href="mailto:peace@lists.chambana.net" rel="noreferrer noreferrer" target="_blank">peace@lists.chambana.net</a>> wrote:</div>
<br>
<div>
<div style="word-wrap:break-word">
<p style="box-sizing:border-box;margin:0px 0px 24px;font-family:"Noto Serif",serif;color:rgb(68,68,68);font-size:16px;line-height:27px;font-variant-ligatures:normal;background-color:rgb(255,255,255)">
<br>
Market reflects wealth inequity</p>
<p style="box-sizing:border-box;margin:0px 0px 24px;font-family:"Noto Serif",serif;color:rgb(68,68,68);font-size:16px;line-height:27px;font-variant-ligatures:normal;background-color:rgb(255,255,255)">
Local wealth manager Paul Ruedi (May 24) asks: “So why isn’t the stock market much lower? Is there a disconnect between economic realities and stock market performance? Economist Dr. Fred Giertz has said the stock market is a leading indicator for the overall
economy, and is not interested in what has happened, but only what is going to happen.”</p>
<p style="box-sizing:border-box;margin:0px 0px 24px;font-family:"Noto Serif",serif;color:rgb(68,68,68);font-size:16px;line-height:27px;font-variant-ligatures:normal;background-color:rgb(255,255,255)">
Nevertheless, the stock market has already responded to what has indeed happened. I refer to the CARES Act, by which $1.5 trillion was given to households, small businesses, state/local governments and public health, with $.45 trillion to “big corporations.”
But that $.45 trillion can/will be debt-leveraged by 10 times, meaning that $4.5 trillion dollars has been/will be printed for corporations and banks.</p>
<p style="box-sizing:border-box;margin:0px 0px 24px;font-family:"Noto Serif",serif;color:rgb(68,68,68);font-size:16px;line-height:27px;font-variant-ligatures:normal;background-color:rgb(255,255,255)">
This ensured that their coffers would be artificially inflated regardless of profit during the pandemic and regardless of small business failures, family immiseration and death.</p>
<div id="m_7978422785724043029gmail-m_6630006951461931203m_1437939184854017873tncms-region-article_instory_top" style="box-sizing:border-box;font-family:"Noto Serif",serif;color:rgb(51,51,51);font-size:14px;font-variant-ligatures:normal;background-color:rgb(255,255,255)">
</div>
<p style="box-sizing:border-box;margin:0px 0px 24px;font-family:"Noto Serif",serif;color:rgb(68,68,68);font-size:16px;line-height:27px;font-variant-ligatures:normal;background-color:rgb(255,255,255)">
Investors, thus reassured, bid back up stock indexes 20 percent from their low on the day of CARES passage (March 23) to May 22. Thus continues four decades of consolidation of stock wealth among the top 10 percent (80 percent), and the top 1 percent (40) percent,
and the nonpartisan political subservience that goes with it.</p>
<p style="box-sizing:border-box;margin:0px 0px 24px;font-family:"Noto Serif",serif;color:rgb(68,68,68);font-size:16px;line-height:27px;font-variant-ligatures:normal;background-color:rgb(255,255,255)">
There was a time when modestly rising stock values meant modestly rising general prosperity. Under globalized/financialized neoliberalism, rising stock values mean increased inequality and stagnating wages during the “best” of times. During the pandemic, the
hammer is being brought down in even more shameless ways on the working class — wealth manager crassness notwithstanding.</p>
<p style="box-sizing:border-box;margin:0px 0px 24px;font-family:"Noto Serif",serif;color:rgb(68,68,68);font-size:16px;line-height:27px;font-variant-ligatures:normal;background-color:rgb(255,255,255)">
DAVID GREEN</p>
<p style="box-sizing:border-box;margin:0px 0px 24px;font-family:"Noto Serif",serif;color:rgb(68,68,68);font-size:16px;line-height:27px;font-variant-ligatures:normal;background-color:rgb(255,255,255)">
Champaign</p>
</div>
_______________________________________________<br>
Peace mailing list<br>
<a href="mailto:Peace@lists.chambana.net" rel="noreferrer noreferrer" target="_blank">Peace@lists.chambana.net</a><br>
<a href="https://lists.chambana.net/mailman/listinfo/peace" rel="noreferrer noreferrer" target="_blank">https://lists.chambana.net/mailman/listinfo/peace</a><br>
</div>
</blockquote>
</div>
<br>
</div>
</div>
</div>
_______________________________________________<br>
Peace mailing list<br>
<a href="mailto:Peace@lists.chambana.net" rel="noreferrer noreferrer" target="_blank">Peace@lists.chambana.net</a><br>
<a href="https://lists.chambana.net/mailman/listinfo/peace" rel="noreferrer noreferrer noreferrer" target="_blank">https://lists.chambana.net/mailman/listinfo/peace</a><br>
</blockquote></div></div></div>
_______________________________________________<br>
Peace-discuss mailing list<br>
<a href="mailto:Peace-discuss@lists.chambana.net" target="_blank" rel="noreferrer">Peace-discuss@lists.chambana.net</a><br>
<a href="https://lists.chambana.net/mailman/listinfo/peace-discuss" rel="noreferrer noreferrer" target="_blank">https://lists.chambana.net/mailman/listinfo/peace-discuss</a><br>
</blockquote></div><br clear="all"><div><br></div>-- <br><div dir="ltr">-- karen medina<br>"The really great make you feel that you, too, can become great." - Mark Twain<br></div>
_______________________________________________<br>
Peace-discuss mailing list<br>
<a href="mailto:Peace-discuss@lists.chambana.net" target="_blank" rel="noreferrer">Peace-discuss@lists.chambana.net</a><br>
<a href="https://lists.chambana.net/mailman/listinfo/peace-discuss" rel="noreferrer noreferrer" target="_blank">https://lists.chambana.net/mailman/listinfo/peace-discuss</a><br>
</blockquote></div>