When Good Money Has Nowhere to Go

Tis Thursday night.

And Thursday nights are just as good as any to get rip roaring drunk as you look upon this once-great society and, after much deliberation and thought, come to the same conclusion you have previous Thursday nights that this country is completely screwed and nothing can be done about it.

By the way, pour me another Rumpie.

Anyway, something that has been bothering my economic mind is why has the stock market constantly been going up?

Naturally logical theories are abound, many of which I subscribed to out of laziness and cynicism, but inevitably that damn thing called "intellectual honesty" gets in the way and makes you want to PROVE your suspicions true.

So off I went to the FDIC where I fully expected to see in the aggregate banking reports TONS, MILLIONS, BILLIONS, nay, TRILLIONS of dollars being flooded into our stock markets because our inept, incompetent, and bail-outtable-affirmative-action case bankers:

1.  Had gotten bail out money that they
2.  Had nowhere to lend because
3.  The economy isn't booming and ergo
4.  There's nowhere left to invest it but the stock market.

So I thought.

But the truth is anything but.

Banks have not been increasing their marketable securities holdings and so the boom in the stock market does not come from there.

This perplexed me because I was sure the bail out money was being parked there.  But since it was not true (now leftists, pay attention to this), I accepted it as fact and looked elsewhere for the real reason for the boom.

My logic led me to two places or "institutions" that could explain the massive cash inflow into the stock market and thus its ludicrous valuation.

1.  The central bank which has been printing off a ton of cash because....WTF not and "where do we put it?"

and

2.  Profitable non-financial corporations that had nothing better to do with their cash

And shucks howdy if I'm not the Sherlock Holmes of economics!

My first guess about the central bank dropping money into the stock markets proved false.  They're too busy bailing out the parasitic class, welfare bums, bankers, loser liberal arts majors, single moms, and other degenerates *ahem* investing in "government bonds" to invest in the stock market.  Politicians need money to bribe the masses to vote for them, and the wise use of money a la a genuine "investment" doesn't achieve that.  So all that QE money is NOT ending up in the stock market, but the EBT cards of fat, bloviated trailer, ghetto, and barrio fatherless trash the single mom matrix keeps spewing out.  So that money does not boost stock prices as much as obesity rates in the lower classes.

However, I DID find the true cause of inflated stock prices after sampling Apple, Microsoft, and other "cash cows" of the corporate world in their "marketable securities" holdings (read "stocks).  Said holdings have skyrocketed as their profits are up but they have no real genuine NEW investments to reinvest said proceeds.

Since we hate corporations, profits, innovation, success, etc., profitable corporations today face a conundrum:

Do they invest in a new venture?  A new company?  A new innovation?

or

Do they just "park" the money somewhere in an already existing company with political and cronyistic connections that guarantees them a rate of return?

And now you know (at least in part) why the stock market keeps skyrocketing.

Who, precisely, would invest in a new venture in this county?  What idiot would dare to invest in a virgin endeavor that has no political connections, lobbyists, or other scum to secure the ordainment of the government?

The sad truth is that any genuinely new invention, endeavor, innovation, venture or business faces such obstacles as regulation, taxation, labor law, not to mention corruption, why would you invest in something new?  An old, established, networked, and connected company, with nowhere near the potential, is a more reliable and provides a higher rate of return than some idiotic young go-getter.  Worse still, even if said corporate monies were to be REINVESTED in their own plants, why would they invest here?

Obama and the NLRB effectively nationalized Boeing for daring to set up a plant outside union control.

Seattle just passed a $15 minimum wage.

To hell with the hassle, bother, and politics of setting up a new shop, a new plant, or a new facility.

Corporations would rather just take their trillions and park it in the boring ole stock market where NO NEW INVEMENTS OR COMPANIES ARE MADE, and therefore NO NEW JOBS, but

hey

at least you get a 2% dividend yield.

Again, I no longer care where this country is heading.   Matter of fact, I've so thoroughly thought it through I now fully appreciate and enjoy the suffering Americans have brought upon themselves.

I just want to be like Voltaire and write for posterity.  Enjoy that freaking and well-deserved decline kids.  Enjoy that freaking decline.