all-time highs, Michael Roberts, overly leveraged companies, Policy uncertainty is undermining investment, productivity (measured as output divided by employees) is stagnating, real GDP growth, risk appetite, share buybacks, speculation in financial assets, the ‘real’ economy, weak domestic growth, world trade is contracting, zombie companies
The fantasy world continues. In the US and Europe, stock market index levels are hitting new all-time highs. Bond prices are also near all-time highs. Investment in both stocks and bonds are delivering massive profits for the financial institutions and companies. Conversely, in the ‘real’ economy, particularly in the productive sectors of industry and transport, the story is dismal. The world’s auto industry is in serious decline. Layoffs of workers are on the agenda in most auto companies. The manufacturing sectors in most major economies are contracting. And as measured by the so-called purchasing managers indexes (PMIs), which are indexes of surveys of company managers about the state and prospects for their companies, even the large service sectors are slowing or stagnant.
The latest estimate of US real GDP growth was published yesterday. In the third quarter of this year (June-September), the US economy expanded in real terms (ie after inflation…
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