“The extent of the divorce between the US stock market and the financial system more broadly from the underlying real economy is revealed in the rise of Wall Street’s benchmark S&P 500 index for the past two years. For the second year in a row, the index rose by more than 20 percent, despite a selloff of 2.5 percent in December. “
The rise has little to do with the real economy and more to do with the expectations of the traders for lower interest rates and a Trump presidency. Mainstream economists have no interest in understanding the underlying structure of capitalism.
Read in WSWS
