FAST FIVE: David Stockman: How The Stock Market Got To Be So Out Of Touch With Reality
Has the stock market become out of touch with reality, and if so, what are the consequences of that.
To the contrary, the current depression is the result of the visible shutdown and quarantine orders of the state, which are likely to linger for months to come or even intensify as the fall-winter flu season arrives.
That's especially the case because the PCE deflator drastically underweights shelter costs and doesn't even measure the purchasing power of money against a fixed basket of goods and services over time, anyway.
Instead, it is actually a tool of GDP accounting that reflects the changing mix of goods and services supplied to the household sector.
There is no other way to explain a Fed balance sheet that went from $4.2 trillion on March 4 this year to $7.2 trillion by June 10.