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It shouldn’t surprise anyone that the stock market is now down on a YTD basis. What has improved in the economy to warrant the market rising? The manner in which the affluent insulate themselves from the realities of a shrinking middle class and a growing underclass makes it easy for them to think things are going great, especially when the Feds will make up whatever statistic is needed to support that delusion. The reality however is that a shrinking middle class and a growing underclass have already exhausted whatever reserves that had and are now spending less. Businesses can play games manipulating the value of their stock but it is much harder to make believe you have revenue and profits that you don’t have. Sooner or later reality sets in and that is what is happening on Wall St.