Everybody seems to be concentrating on maintaining or increasing the value of the stock market by increasing investor confidence and getting them to invest more into the market. The thing is, all the money going into the stock market goes into creating things for consumers to use. Most consumers are either too poor, too comfortable or too debt-ridden to buy a lot of the stuff being made by companies backed by the stock market. No customers means nobody buys the stuff made by the companies means the stuff and the companies themselves lose value on the marketplace. This is the opposite direction investors are hoping to move towards, and so they rightfully bail. Too much focus is on the creation side and not enough on the consumption side. When consumption requires taking on more debt there is little chance that consumption will dramatically increase. Without that increase in consumption companies lose value and investors lose money.
Submitted August 26, 2015 at 08:51AM by sohalien http://ift.tt/1MV8xyp
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