Pic Of The Moment: S&P Breaks 2,000 For The First Time

[JDPriestly]

3. What about wages under Clinton, Bush and Obama?

Wages are the test of the economy. The stock market reflects a lot of things, but not the health of the real economy. When the long-term unemployed get jobs, then we can start bragging about our economy. When a mother of two pre-school children can earn enough from her job to pay for top-quality day-care, then we can brag about our economy.

When interest rates go up a bit, then we can talk about a healthy economy. This economy is being goosed by the Fed. That pushes money that would normally be invested in other things into the stock market.

The Clinton boom was based on unrealistic exuberance too. Rich people hope to make lots and lots of money and invest in the stock market. Meanwhile, businesses trying to attract more buyers for their stock lay off employees. That is not a healthy economy. It is a repeat of the boom and bust cycle.