Advertisement

You will be redirected to the page you want to view in  seconds.

Letter: This economy is built on sand

Stock market boom has no foundation

12:32 PM, Mar. 13, 2013  |  Comments
A survey of economists predicts that Federal Reserve Chairman Ben Bernanke, foreground left, will step down when his second four-year term ends next January. Alexander Zemlianichenko/AP Ben Bernanke, chairman of the U.S. Federal Reserve, foreground left, enters a hall to attend the summit of financial ministers and heads of central banks of the G20 group of nations ahead of their key meeting this weekend in Moscow, Russia, Friday, Feb. 15, 2013. Russia‚??s President Vladimir Putin has called on financial chiefs of the world‚??s leading industrial and developing nations to consider political and social implications of the crucial policy steps they take. (AP Photo/Alexander Zemlianichenko)
A survey of economists predicts that Federal Reserve Chairman Ben Bernanke, foreground left, will step down when his second four-year term ends next January. Alexander Zemlianichenko/AP Ben Bernanke, chairman of the U.S. Federal Reserve, foreground left, enters a hall to attend the summit of financial ministers and heads of central banks of the G20 group of nations ahead of their key meeting this weekend in Moscow, Russia, Friday, Feb. 15, 2013. Russia‚??s President Vladimir Putin has called on financial chiefs of the world‚??s leading industrial and developing nations to consider political and social implications of the crucial policy steps they take. (AP Photo/Alexander Zemlianichenko)
  • Filed Under

EDITOR: The stock market has set a new high and in a headline Daily Herald Media promptly declared the recession to be "in the rearview mirror." Not so fast. Before breaking out the champagne, let's take a look at two periods in the 20th century.

The 1920s was a time of unparalleled prosperity. The stock market was the place to be if you wanted to get wealthy. There were folks who manipulated the market and when the crash came, it lasted until the second world war. Fortunes were lost overnight. The nation's prosperity was not built on a solid foundation.

In the 1990s, we had a choice how to invest our 401Ks: take a set amount of interest or play the stock market. Those who invested in the market were riding high and many were doing so well they made plans to retire early - until the bottom fell out. The market corrected itself and those with 401Ks found their worth half of what it was the day before.

Today, we do not have have a healthy economy. Real unemployment, including those who have given up looking, for work is in the area of 14 percent. In our area we have had the closing of a window manufacturer and a paper mill, and two more paper mills for sale. It seems like prices on just about everything have spiked.

The market might look good on the surface, but it doesn't have a good foundation. The Federal Reserve is pumping money into the economy, which gives a false sense of security. Beware!

Gerald Molling,

Kronenwetter

What's your take on the Packers Family Night change?

Retrieving results.
Watching practice is fine.(Your vote)
15%
573 votes
I'd rather watch a scrimmage.(Your vote)
23%
856 votes
I don't want to pay to watch practice.(Your vote)
27%
1013 votes
It doesn't matter to me.(Your vote)
34%
1271 votes

Catch up on the latest in our pregame show every game day.

Football fans

If you've ever answered "Who has the ball?" with "It's halftime," you might recognize The Airhead. Check out the characters in our cartoon gallery of oddball fans.

Special Reports

ORDER YOURS

Football fans

If you've ever answered "Who has the ball?" with "It's halftime," you might recognize The Airhead. Check out the characters in our cartoon gallery of oddball fans.

Special Reports