One
of the reasons the stock market average is high is the massive
liquidity the Federal Reserve has pumped into the banking system since
2008. Instead of going into consumer inflation, the money went into
stock and bond price inflation.
Another reason for the artificial
high stock market is the multi-trillion dollar buy-back of their own
stock by US corporations. Many of these corporations have even borrowed
from the banks in order to drive up their share prices with heavy
purchases, thus maximizing executive bonuses and the values of stock
options for board members. In effect, they are looting their own firms
by loading the companies with debt in order to drive up executive and
board incomes.
