Stock markets at a record high - so what ?

Thanks to Parsifal that posted this on one of our BRIDGES
SiNeh~

The sense of crisis seems to have evaporated in the stock markets.
The Dow Jones reached a record high on Tuesday and other indexes are about to.
The markets are back where they were before 5 1/2 years is rejoicing.
Therefore the financial and debt crisis is over ?
Parsifal, March 6, 2013
Probably not.
Since when the equity markets reflect the real economy ?
That is only share fireworks possible by the ‘money’ printing by the Fed, ECB and other central banks.
The bubble will soon burst again.
Realistically, the rise in the Dow Jones on 14,253 points, overhaul of the previous highs of 14,164 points then on October 9, 2007 is not comparable.
Inflation at this time is not considered.
A true indicator of how real is soaring shows the Dow to Gold ratio, so how much gold you need to buy the Dow Jones index.
On October 9, 2007 one ounce of gold was USD 744.
So, was needed 19 ounces to buy the Dow Jones index.
Today the price of gold is at USD 1.575.
This means that only 9 ounces are necessary.
The Dow Jones is therefore not where it was before 5 1/2 years, but has increased only by half.
It should be twice as high at over 28,000 points to catch up the loss by the devaluation.
The investors in shares are poor in calculating and are euphoric over something that does not exist.
They should curb their enthusiasm clearly, because there is nothing to celebrate.
On the contrary, it is an evidence of incapacity that the markets in 5 1/2 years are only half there where they should be.
Moreover, no problem which led to the crisis is resolved.
The debt is generally much higher than it was 2007.
The stock prices reflect anyway not the whole economy.
Only the unsuspecting average citizen thinks the stock indices are the entire market, the Dow Jones represents as consisting of only 30 selected corporations.
This is a ridiculously small sample of the hundreds of thousands of companies that make up the American economy.
Furthermore, whoever comes in the index is scam anyway.
The companies where it goes badly kicked out and are replaced by better ones.
Remained constant, the names of corporations, the index would be much lower.
For example, the former Market heavyweight General Motors was thrown out from the Dow because the Group was broke and had to be bailed out with taxpayers' money.
Even Citigroup and Kraft Food (soon renamed Mondelēz International) are no longer there.
Therefore, the Dow Jones Index in no way shows the real state of the U.S. economy.
Since as stadia rod you can just as well take the water level of the Hudson River.
The same applies to the stock exchanges in London, Frankfurt Tokyo ...
These are fantasy markets like cheated the odds the bookmakers of sports events  as there is bribed just like mad, it's all fake.

The prices of the stock indices of today have nothing to do with the courses before 5 1/2 years.
It is a comparison as apples and oranges.
Therefore, the claim is a lie that the crisis is over, the losses due to the crisis have been reversed.
Now the party can go on, because we are back where we were before, and it goes up.

But let the masochists plunge into their painful disaster and burn their fingers, where they now also buy shares to the maximum cost.
Anyway long does the high not last.
What's up falls down inevitably.
The bubble is largest before it bursts ...