As the chairman of financial asset price control, intials BB, has stated. When financial asset price are up, people will feel wealthier , better and will draw on their credit lines to buy the latest Iphone to feel even better and share their thoughts on FB….
the bloomberg headline ”
Top 1% Got 93% of Income Growth as Rich-Poor Gap Widened (here is the story http://www.bloomberg.com/news/2012-10-02/top-1-got-93-of-income-growth-as-rich-poor-gap-widened.html
just shows one more time that… the financial machine has been very efficient in maxing out all the asset price inflation mechanism to finance the consummer frenzy of the last few decades which were marked by a virtually absent income growth. BB.. still believes that.. heavy weight lifting of asset prices.. is the best solution available to resolve all problem.
let’s not under estimate the power of the “we are the 99%” which has lost faith in the politics and institutions which were supposed to care about them. The 99% know that the system is broken but if hsitory is a good guide… power shift happen .