Biderman's Daily Edge 6/12/2012: Stocks Edging Closer to Financial Cliff
4 minute video…………Biderman on Central Banks: “In The End, They Will Get What They Deserve”…….
“In 1982 wages and salaries for all with jobs, including bosses, was $1.6 trillion. That same year, the value of all US stocks, also known as the market cap, was around $1 trillion. Today wages and salaries are about $6.8 trillion, which is more than four times what people made 30 years ago.
While wages and salaries quadrupled over the past 30 years; the value of all US stocks has soared almost 18 times to $17.7 trillion today. One way of comparing wages and salaries with stock prices is that in 1982 the market value of all US stocks compared to wages and salaries was 0.6 to 1. That means that all wages and salaries were more than the value of all US stocks.
Today, the value of all US stocks at close to $18 trillion is more 2.6 times the amount of all wages and salaries. In other words while wages have gone up over four times, the value of stocks have gone up more than four times for each of the four fold gain in wages.”