I talk to people. I listen to people a lot too. I am very good at having grown up conversations. Recently, a surprising number of people I talk to think that the DJIA being high means that the economy is better. Some slightly more sophisticated people think that the DJIA being high means that economic improvement is right around the corner because these flush with cash companies will start building factories and hiring people.
A few very sophisticated people know that “the Dow” isn’t related to our economy much at all anymore. They know that the widespread mythology that the DJIA is related to the economy is a testament to the success that the investor class has had framing their goals and aspirations as the country’s goals and aspirations.
Who knows though, maybe if we all believe in the DJIA hard enough, if we light candles and kneel before our Jim Cramer (sp?) shrines, companies will put some money back in the system? Maybe the egg heads who are always looking for clear connections between “cause” and “effect” just need to shut up and enjoy a day at the dog track. Maybe it is time for a good old fashioned ghost dance?
Sequester, schma-quester – Happy days are here again!!