One more datapoint on the equity bubble

The latest Flow of Funds Report (link to pdf) shows that equities comprise a greater share of US household assets than at any point besides the height of the internet bubble. Of course, elevated prices alone will increase that figure, but individuals have a tendency to increase their allocations to an asset class at precisely the time that they should consider scaling back or exiting. With no significant setbacks for three years now, the mood seems to be, “come on in – the water’s fine.”

Hat tip Cyniconomics

The material living standards of US rich vs poor, and the politics of envy.

I’ve lived on both continents, and poor people in the US have what middle-class europeans do, but they eat more and on average are far dumber. What this video makes clear is that most of their fundamental problems do not arise from a lack of purchasing power.