The Economics of a Double Dip

   Posted by: chris   in Fish Talk

There is much talk of a double dip recession in the air and within the deep recesses of my grey matter I have being contemplating just what exactly the economy is for oh so long now.

So after all these years of contemplating the best description I can come up with for what we refer to as the economy is this:

  1. There is a natural interaction between people buying, selling, trading, bartering, etc the fruits of their labors. This though real is not what most people accept as the economy.
  2. There is Wall Street and the other stock and commodity exchanges around the globe which in reality are a reflection of the opinions and beliefs of people who are unaffected by the actual economy. This reflection is accepted as the economy

Most people and most media outlets take the daily events on Wall Street to be the economy when in fact all Wall Street actually is, is a game played by people who wouldn’t know the real economy is it slapped them hard on the face.

The people whose actions decide what the closing numbers are on the NYSE every day are completely and totally insulated from the cycles and grinds of every day living that the mere mortals who are the actual economy must bear day in and day out.

The sad reality for Joe the Plumber is that if there are no bathrooms to plumb then there is no money to pay the mortgage or to go food shopping.

Whereas when your yearly bonus is equal to the GNP of most third world countries actual economy events are like Martians, a peculiar brand of science fiction that is so far removed from your every day existence that it appears to far fetched to be believable.

In the real economy where actual people reside there is no possibility of a double dip. As the venerable Mr. Belichick would say; “It is what it is.” The state of the economy is the state of the economy; it doesn’t improve just because the numbers change. It changes when you get a job or win the lottery.

However within the fictitious realms of the Wall Street economy double dips are real, because the actual reasons for the rebound in stock prices has nothing to do with economics and everything to do with the mindset of the dealer rolling the dice at the largest casino in the history of the universe.

The Wall Street economy is arbitrary; it is totally dependent on the opinions of the people who trade stock. They have no interest in the actual economy where the rest of us live. Their only reason is to make a profit and if a trader is powerful enough and controls enough stock he/she can manipulate prices merely by pressing the buy/sell button on a computer terminal.

The Dow goes up, the Dow goes down and the President and the Media and anyone else who cares to dine on rhetoric swallow’s their bitter pill and wonder what’s happening to their neat safe one size fits all world.

Wake up dude, Wall Street’s a game for the privileged few. For the rest of us there’s the real world and believe it or not it’s not that bad out there if you have a roof over your head, dinner in the oven and someone to share it with.

Be Sociable, Share!
This entry was posted on Thursday, January 21st, 2010 at 2:07 pm and is filed under Fish Talk. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.

One Trackback/Ping

  1. The Economics of a Double Dip | Foolish Fish Help    Jan 22 2010 / 12am:

    […] here: The Economics of a Double Dip | Foolish Fish Tags: awesomely-strong, certain-minimal, grey, grey-matter, hold-the-handle, ice-cubes, […]

Leave a reply

Name (*)
Mail (will not be published) (*)