The DJIA has just hit 40,000 - but didn’t it just reach 30,000 three years ago? The Dow’s milestones keep coming faster and faster - WSJ’s Gunjan Banerji explains why. #Dow #DowJones #Shorts
Serious question: why does WSJ keep reporting on DOW milestones? Because of inflation it’s value declines in real dollars and, as shown in this video, it grows exponentially so a linear scale isn’t useful.
The Federal Reserve added trillions of dollars to its balance sheet through quantitative easing, and much of that liquidity went into inflating asset prices, enriching the rich.
It was mostly the same talk in the start in 1928-1929... the rest is history which seems to be forgotten for most people sadly .... should keep you awake at night in my opinion.
Guess you can make a lot of money when you over charge, underpay, and take away everyone’s health benefits. At least until they get smart enough to do something about it.
Would be neat to chart this against population size, real gdp, and monetary supply. Think there's a good chance there'll be something quite noticeable around 2009.
Comments are mostly wrong. It's not exponential. That's mathematically incorrect. It's not just compounding. That only applies to monetary value. (And the explanation woman is right - but utterly pointless...) Early days, literal growth in value WAS from real world innovation, discoveries, exploitation across finance, globalisation, industrial processes, research...& Population growth. NOW we have an insane desire aka need to believe that growth in value can be 'forever'. The corporations, the investors, the economists... Everyone is pulling in the same direction. The real world growth has been hijacked by a crazy Ponzi-like mutual delusion. Until one day something happens to burst that bubble. TLDR? A crash is coming. It's inevitable. The only question is when & how big. The biggest problem in this century is how so many goods & services are simply not necessary for survival, effectively mostly luxury toys. And the globalisation which fuelled capitalist greed is running out of steam as the cheap countries now have their own aspirations. Essentially the old industrial countries gave away their production capacity and now can't compete on cost - or even quality now. The future will be grim, no matter how you try to wish it away with fancy graphs & attention-deficit video explainers.
So basically they just explained how exponential functions work for people that don’t know what exponential function are?
:D
Its called exponential growth.
And the money printers continue to go brrrrrrrr
And the conspiracy theorists go cuckoo cuckoo
And the 1% goes "Take, keep, hoard!!!"
And the ostriches go "I looked around, don't see anything down here".
How does this graph behave on a logarithm scale?
easy explanation: exponential money printing results in proportional asset valuation growth
Amazing progress! Keep it up, Dow 🚀
Dayum I didn’t expect gunjan to look like that!
Serious question: why does WSJ keep reporting on DOW milestones? Because of inflation it’s value declines in real dollars and, as shown in this video, it grows exponentially so a linear scale isn’t useful.
compounding effect
Neat. Isn't it interesting how statitistic can be a great deception tool.
The Federal Reserve added trillions of dollars to its balance sheet through quantitative easing, and much of that liquidity went into inflating asset prices, enriching the rich.
Did…did you just explain what basic exponents are
Very nice reporter. Now what was she saying?
Exponential growth cannot continue forever on a finite planet.
Yes, everything that goes up has to go down, but when?
It was mostly the same talk in the start in 1928-1929... the rest is history which seems to be forgotten for most people sadly .... should keep you awake at night in my opinion.
Easy they printed money to buy a bigger printer to print more money.
Guess you can make a lot of money when you over charge, underpay, and take away everyone’s health benefits. At least until they get smart enough to do something about it.
Would be neat to chart this against population size, real gdp, and monetary supply. Think there's a good chance there'll be something quite noticeable around 2009.
Absolutely genius analysis here
Comments are mostly wrong.
It's not exponential. That's mathematically incorrect.
It's not just compounding. That only applies to monetary value.
(And the explanation woman is right - but utterly pointless...)
Early days, literal growth in value WAS from real world innovation, discoveries, exploitation across finance, globalisation, industrial processes, research...& Population growth.
NOW we have an insane desire aka need to believe that growth in value can be 'forever'. The corporations, the investors, the economists... Everyone is pulling in the same direction. The real world growth has been hijacked by a crazy Ponzi-like mutual delusion.
Until one day something happens to burst that bubble.
TLDR? A crash is coming. It's inevitable. The only question is when & how big.
The biggest problem in this century is how so many goods & services are simply not necessary for survival, effectively mostly luxury toys.
And the globalisation which fuelled capitalist greed is running out of steam as the cheap countries now have their own aspirations.
Essentially the old industrial countries gave away their production capacity and now can't compete on cost - or even quality now.
The future will be grim, no matter how you try to wish it away with fancy graphs & attention-deficit video explainers.
I'm looking at a graph of the Dow in Google. It doesn't look like the one they're showing in this little video.
money printing