Michael Roberts points out that the ups and downs of the stock market have little to do with the real economy. Therefore, its rise and fall may have little to do with the state of the economy.
The stock market’s ups and downs have to do with the subjective judgment of financial investors about the future. The real economy has to do what the production of goods and investment in technology in the past and present. In the real economy, manufacturing is in deep contraction and the profitability of the non-financial sector is at its lowest point since the Great Recession of 2008. Michael predicts there will be a real recession by the end of the decade, but not for the reasons that financial investors imagine.
Read in The Next Recession
