Chart Of The "Recovery": GDP vs Market Capitalization Since "The Lows"

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Much has been said, and even more has been written about the reasons and causes why five years after the start of the last recession, and four years after its purported end, the US economy continues to act as if it were still in the second worst depression (for now) in history, and which without the Fed's ongoing support four years after the "end" of the aforementioned "recession" would be in all out collapse. Of course, the same can not be said about the US stock market, which now hits new record highs on a daily basis.

We won't add to the compendium of hollow and largely worthless opinions on the matter - the Fed's central planning regime will go on for as long as it can, at which point it will end - but we will show the one chart which confirms without a doubt just who has benefited from the Fed's historical balance sheet expansion, from the status quo's so-called "trickle down", from the global central banks' unprecedented reflationary experiment, and from the failed Keynesian voodoo cult's all-in gamble to preserve a failed economic religion and middle-to-upper class wealth redistribution strategy.

In short:

  • Since the March 2009 lows, US GDP has increased by $2.3 trillion.
  • Since the March 2009 lows, the capitalization of the US stock market has increased by $12.3 trillion.
  • Delta between the two: 436% in favor of stocks.

And visually:

source ...

Files:
gdp_vs_sampp_1.jpg  51 kb
 

so stocks won?

 

has n't the FED increased its balance sheet by about the same $2.3 trillion,

with its phoney money printing and bond buying

it could be worse i suppose

 
Pava:
so stocks won?

I guess that stock owners won (or were given it)

 

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"This first stage of the inflationary process may last for many years. While it lasts, the prices of many goods and services are not yet adjusted to the altered money relation. There are still people in the country who have not yet become aware of the fact that they are confronted with a price revolution which will finally result in a considerable rise of all prices, although the extent of this rise will not be the same in the various commodities and services. These people still believe that prices one day will drop. Waiting for this day, they restrict their purchases and concomitantly increase their cash holdings. As long as such ideas are still held by public opinion, it is not yet too late for the government to abandon its inflationary policy"
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