Trouble in Paradise

I just read a report on how the median income of people in the united states dropped over the last 10 years. This implies that the median income in 1998 was more than it is today. How is this possible when the Fed has been ensuring us all of a steady inflation of 2/3% per year? Hmmm, so if over the last 10 years $1 in 1998 is now worth 70c, how are people getting by? This implies that if our spending habits of 1998 are the same today, then 30% of the average cost of living today is derived entirely from credit. Are you fucking kidding me? So let me get this straight, we just experienced one of the most massive bubbles in the history of the universe and the average income in this country actually dropped! How is this possible? Clearly the difference has been made up entirely on credit. And we are now witnessing that credit in massive contraction across the board. Meaning, the cost of living will now have to be made with just income and not credit. So the P/E ratio on the S&P 500 being 145 is justified where exactly? Yeah, the markets are a great indicator that everything is perfectly fine, right.