Juggling Dynamite

Surfing life savings over QE/HFT waves today may seem smart and proactive. But then again its also a fool’s paradise. Like Robert Redford’s character in All is Lost, equity market participants today are wading around on a sinking boat that can plunge at any moment. This chart capturing the glaring disconnect between US household incomes and the S&P over the past 4 years, as compared to the tight correlation 1990 to 2010, offers insight. A 50% fall in the S&P 500 would close the gap and restore historic correlations.

Danielle was a guest today with Kerry Lutz on The Financial Survival Network talking about recent developments in the world economy and markets.  You can listen to an audio clip of the segment here.

Investigative journalist and author Matt Taibbi has long reported on American politics and business. With an old-school muckraker’s nose for corruption, he examined the events leading up to the 2008 financial crisis in Griftopia. Taibbi has a new book out this week called The Divide: American Injustice in the Age of the Wealth Gap.

The book explores the connections between growing income inequality and a justice system that Taibbi says disproportionately punishes the poor.  National Public Radio’s Kelly McEvers talks to Taibbi about his new book. Here is a direct audio link.