Nasdaq highs and economy lows

Pundits say it’s different this time. The Nasdaq is not levered up with high-flying tech stocks with no promise of profit.

But as the Nazzies break through the 5K mark — 40 points shy of its all-time record, could it be a sign of the new top?

Sure there are no sock puppets touting Pets.com, and Steve Case and Gerald Levin are not high-fiving themselves on the Time Inc./AOL merger, but we have a recession.

It is a global recession, where central bankers try to jawbone a recovery, while printing piles of money to foster growth.

Sure US equities soared Monday, but why? Meaningful data showed that Fed is off base in thinking it can raise rates anytime soon.

They can talk it up, but when consumer spending is falling — during and after Christmas — and the greenback is soaring, the market knows its easy money for as long as the eye can see.

We don’t need hype about the new business leaders of the economy all ending their name in dot-com, like 15 years ago. That was that bubble, blame it on Fed head Alan Greenspan and his easy money policy. Given him this, Greenspan allowed that money to have velocity. He circulated his printing so that wages could rise.

This easy money policy of Ben Bernanke and Janet Yellen to follow ring-fence the cash by restricting lending and quashing wage growth for fear that the $4T+ the Fed put in “circulation” will create runaway inflation. It should if the Fed did not have so many strings attached to it.

How else do you print $4T+ and get a Nasdaq 5,000 with the Dow Jones and S&P at record highs and still have so many Americans underemployed in two or three part-time jobs making minimum wage?

So maybe this time we have President Obama proclaiming America has turned the corner and prosperity is near citing the stock market highs. But just remember how well that Time/AOL deal went?

Case and his investors made out well, but we got nailed.

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