Some of you are graduating summa cum laude. Some of you are graduating magna cum laude. And some of you are graduating thank you laude.
PRESIDENT OBAMA, giving the commencement speech at Morehouse College (via CBS News)
I think the big mistake in schools is trying to teach children anything, and by using fear as the basic motivation. Fear of getting failing grades, fear of not staying with your class, etc. Interest can produce learning on a scale compared to fear as a nuclear explosion to a firecracker.
Let’s face it, the Dow is so high not because the economy is great, or even because it is projected to be great soon. It’s mostly inflated out of a combination of easy Fed money for banks, which translates to easy money for people who are already rich, and the fact that world-wide investors are afraid of Europe and are parking their money in the U.S. until the Euro problem gets solved. In other words, that money is going to go away if people decide Europe looks stable, or if the Fed decides to raise interest rates. The latter might happen when the economy (or rather, if the economy) looks better, so putting that together we’re talking about a possible negative stock market response to a positive economic outlook. The stock market has officially become decoupled from our nation’s future.