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Stock Market Record! Congrats- You’re Back to Zero!

Graph UP
A lot of happy headlines today as the Dow Jones Industrial Average climbs to heights never before seen. I checked my retirement accounts and I am, indeed, doing nicely. But compared to what?

Compared to 5 and half years ago- we’re now back to where we started. Compared to ten years ago, stocks have averaged only a .6% increase in value. And for giddy investors there’s always this helpful MarketWatch headline: Legendary Hedge-Fund Manager: This Will End Badly.

What are the markets so exuberant about anyway? Unemployment at 8%? Adjusted for inflation, your take-home pay buys 8% less than it did in 2007. Last time we hit record highs on Wall Street your home was worth 26% more than it is today and that’s counting a recent housing rebound. Some 14 million homeowners still have property that’s worth less today than when they bought it. Mark Gongloff has all the stats in this piece in the Huffington Post.

Perhaps the markets are responding enthusiastically to that newfound spirit of compromise on Capitol Hill? Oh- that’s right, we’re still careening from one manufactured budget crisis to the next.

All these reasons for the stock market not to be happy worry me. It’s a nice fantasyland if you’re lucky enough to have a 401k or an IRA- but if you don’t- this little roller coaster ride means nothing except that a bunch of rich people are doing better than you…and even at that- they’re only standing still.

Hate to be the skunk at the garden party, as they say. And I’ll take the rally since the alternative really sucks. But careful out there…irrational exuberance has bitten us in the derriere before.

Weinered Out

I took a few days off and unplugged from the world a bit. As I read back in to our political and cultural discourse today, I see 7 out of 10 news stories are about Congressman Weiner’s sexting and Sarah Palin’s version of Paul Revere’s midnight ride.

I understand the spectator appeal of both stories; we’ll call it the car crash syndrome- not pleasant to look at but impossible to resist. But really, Washington Post- five different Weiner angles? “Weiner’s District Debates His Future,” “Wives Increasingly Skip Public Confessions,” “Weiner Takes Mortification 101,” “Anthony Weiner’s Apology-Fest,” “Breitbart Inserts Himself in Weiner Drama.” Daily Beast/Newsweek is similarly obsessed with 4 of its top 10 stories concentrating on some iteration of All Things Weiner.

The Post also weighs in mightily with the continued brou-ha-ha over Sarah Palin’s historical boo-boo she insists was not a mistake about Paul Revere blowing whistles firing shots and ringing bells to warn the British not to take away our guns or something. We have “Don’t Know Much About History,” “Fight Brews on Paul Revere Wikipedia Page,” “Palin Once Again Disregards the Facts,” and “Sarah Palin Gallops Toward 2012.”

You know, in about two months this nation faces the very real possibility that it will default on its debts for the first time in its history. What’s that- a 1000-point stock market crash? We have a stalled recovery and a public frightened at the potential consequences of continuing job losses. Folks are paying up to $200 a month more to gas up their cars. The housing crisis continues unabated.

I understand the last question asked at Anthony Weiner’s news conference was, “were you fully erect?”

Beyond being disgusted, I thoroughly do not care. My 401K? Job security for my friends and family? Can I ever afford to buy a house again? Can I get my kid through four years of college? That’s the kind of stuff I care about. Call me Weinered out. Can we please get serious about things that actually matter?