Skip to Content

Stock market boom

12 posts / 0 new
Last post
alanjjohnstone
Offline
Joined: 22/06/2011
Stock market boom

The Dow, the FTSE and the Asian exchanges are all reaching record highs. Good for the capitalist class who have the giant share of stocks.

But i recall one reason that occupational and final salary pensions were being curtailed was that they were unsustainable because of the low investment returns. I remember my own works pension claiming over 10year contribution holiday because they said the stock market was boosting the value of pension fund and they need not put anything into the kitty. But when stock-market hit lows, they were quick to cut workers pensions

It is strange i have not heard from the pension fund managers suggesting that they restore pension benefits now that they are getting more money from their investments. 

Perhaps it is because some investments is in government bonds that aren't doing so well.

Perhaps someone can make clear to me why with the boom, there is not less of a push to do with defined benefit pensions. 

Do high share value get passed on to those who have been placed on the alternative contribution pension systems which cash-in value is based on share levels?

Confused...

"I have no country to fight for; my country is the Earth, and I am a citizen of the World." - Eugene V. Debs

Marcos
Offline
Joined: 23/04/2017

Also, I remember 1930, and 2008 when stock market reached record highs and then it went into a collapse. The stock market is not an indicator of economic growth. The capitalists want workers to believe that everything is going well, but that fictitious market is not producing any job or more industrial production. The rich are getting richer and the poor are getting poorer that is the real situation

 

 

 

 

 

 

 

 

 

 

 

Marcos
Offline
Joined: 23/04/2017

Do not hold your breath for too long, the capitalists are not going to increase salary, to produce more jobs, to repatriate capital and industry or to restore pension funds. In 2008 many workers lost their pensions and they never recovered them, they are gone with the winds of capitalism, and again they are going to lose more pension when this bubble explode again. When they buy too much somebody must sell a lot of intangible securities. It is going to be a bumpy ride again

 

 

 

 

 

 

 

 

 

 

 

Marcos
Offline
Joined: 23/04/2017

This is a good article written by a Trotskyist group about the stock market

https://www.wsws.org/en/articles/2017/12/05/mark-d05.html

This is what we said about 1930 crash

https://www.worldsocialism.org/spgb/socialist-standard/1970s/1979/no-902...

 

 

 

 

 

 

 

 

 

 

 

Marcos
Offline
Joined: 23/04/2017

The stock market has hit the floor twice in a few days. What has happened with the so-called economic development? 

http://money.cnn.com/2018/02/05/investing/stock-market-today-dow-jones/i...

 

 

 

 

 

 

 

 

 

 

 

ALB
Offline
Joined: 22/06/2011

It showed that one of the aims -- increasing the price of stocks and shares -- of low interest rates and quantitative easing  worked. In the sense that now the rate of interest is likely to rise this is going into reverse.On the other hand, the bond market should revive. So the stock market gamblers can survive by switching from shares to bonds.

Meanwhile (for other reasons) the price of bitcoins continues its slide, falling below $7000 from a high of $19,000 a month or so ago.

alanjjohnstone
Offline
Joined: 22/06/2011

Erin Gibbs, portfolio manager for S&P Global Market Intelligence, said: "This isn't a collapse of the economy. This is concern that the economy is actually doing much better than expected and so we need to re-evaluate."

http://www.bbc.com/news/business-42956234

Don't ask me to explain that. 

"I have no country to fight for; my country is the Earth, and I am a citizen of the World." - Eugene V. Debs

Young Master Smeet
Offline
Joined: 15/11/2011

Paul Mason has tweeted this graph:

$19 trillion dollars of quantitatoive easing it took to produce this stock market rise...

Bijou Drains
Bijou Drains's picture
Offline
Joined: 17/11/2015

http://www.bbc.co.uk/news/business-42956234


Marcos
Offline
Joined: 23/04/2017

ALB wrote:

It showed that one of the aims -- increasing the price of stocks and shares -- of low-interest rates and quantitative easing worked. In the sense that now the rate of interest is likely to rise this is going into reverse.On the other hand, the bond market should revive. So the stock market gamblers can survive by switching from shares to bonds.

Meanwhile (for other reasons) the price of bitcoins continues its slide, falling below $7000 from a high of $19,000 a month or so ago.

Bonds are issued by the states and municipalities and they become the debtors and they are the guarantor

 

 

 

 

 

 

 

 

 

 

 

Marcos
Offline
Joined: 23/04/2017

ALB wrote:

It showed that one of the aims -- increasing the price of stocks and shares -- of low interest rates and quantitative easing  worked. In the sense that now the rate of interest is likely to rise this is going into reverse.On the other hand, the bond market should revive. So the stock market gamblers can survive by switching from shares to bonds.

Meanwhile (for other reasons) the price of bitcoins continues its slide, falling below $7000 from a high of $19,000 a month or so ago.

The situation is that China is the main purchaser of State and Municipal bond and they are not want to buy them anymore. Capitalism is in a deep hole and it might get into a crisis worst than 2008. It is a clear indication that crisis are longer than the period of  economic bonanza

 

 

 

 

 

 

 

 

 

 

 

Login or register to post comments