April 9, 2020 at 9:12 pm #198205
This economic crisis was overdue already, and we have not recovered from the 2008/2009 yetApril 11, 2020 at 3:20 am #198309
In recent days and weeks, stock prices have been improving dramatically — even though the health and economic crisis on the ground seems far from over.
“In the face of some of the worst economic numbers in American history,” White and Rasayam explain, “cratering energy prices and a freshly dysfunctional Congress, investors are sending stock prices higher. To many, this may seem insane. And it quite possibly is insane.”
There is a general belief that the efforts by Congress to flood the economy with cash will help ensure that, once the doors finally open again, there will be a massive surge in rehiring and a rapid snapback in economic growth.
Investors seemed to react joyfully to the Fed’s announcement that it “would pump more than $2 trillion in loans to businesses of all sizes, as well as buy up the bonds of troubled city and state governments along with riskier corporate debt,”April 11, 2020 at 5:46 am #198312
It is all fictitious capital. During 1930 there was a drastic increase in the stock market, and later on, everything went down, capitalism is a very unstable system. Some economists have indicated that the so-called stimulus package is not enough, so are talking about 20 trillion. The obvious thing is that all that money is going to be stolen by the capitalist baronsApril 13, 2020 at 10:28 pm #198586
South Asia faces its worst economic performance in 40 years because of the coronavirus, the World Bank has said.
“South Asia finds itself in a perfect storm of adverse effects. Tourism has dried up, supply chains have been disrupted, demand for garments has collapsed and consumer and investor sentiments have deteriorated,”April 13, 2020 at 10:56 pm #198587
Now they are blaming everything on the Coronavirus, but they do not blame on the logical laws of capitalismApril 18, 2020 at 12:14 am #198961
Richard Wolff on the recession
Despite his Marxist credentials where he rightly draws attention to the already instability of the economy before COVID-19, he then props up Sanders FDR policiesApril 20, 2020 at 7:01 pm #199179
Crude oil price drops to almost zero value, or below zero value
April 20, 2020 at 8:17 pm #199182
- This reply was modified 3 months, 3 weeks ago by marcos.
And then, they are saying that Karl Marx was wrongApril 20, 2020 at 10:32 pm #199221OzymandiasParticipant
Will. There be a run on the banks soon? Hyper Inflation?April 21, 2020 at 11:56 pm #199369
It is a swimming pool of oil. Business first peoples secondApril 22, 2020 at 12:36 am #199371
“This is part of the deflation process,” said Murray Gunn, head of global research at market forecasting firm Elliott Wave International. “At this juncture, our analysis suggests that this is very probably the second wave of a much bigger fall…over the next two or three years we will be in a deflationary environment. Survival will be paramount. And cash is king.”
“What we’re seeing here is this fast-forward recession,” said Patrick Perret-Green, head of research at AdMacro. “Then the question is do they then start re-evaluating other things? So, all commodities trading, copper, the whole shebang…we’re reading the fundamental collapse as something not just for oil but for everything.”
U.S shale producers who depend on U.S. crude futures in the low $40s per barrel to break even, are deleterious and could weigh on growth if their usually huge capex spending vanishes.
“At these prices, the entire industry is underwater,” said David Winans, a credit analyst at global money manager PGIM.
“The math is pretty simple. Current oil production is about 90 million barrels per day, but demand is only 75 million barrels per day,” said Gregory Leo, chief investment officer and head of global wealth management at IDB Bank.April 23, 2020 at 12:49 am #199540
The effective tax rate for the wealthiest 10% of the population – once income and wealth were combined – was 18%, less than half the 42% effective tax rate for the bottom 10%.
The government has the potential to raise up to £174bn a year to help cope with the Covid-19 crisis if it taxed wealth at the same rate as income, a UK tax expert has said.
Richard Murphy, a professor in political economy at City University in London, said income was being taxed at almost 10 times the rate of wealth – and that the disparity should be central to any debate about who should pay for the pandemic.
In an analysis of the period from 2011 to 2018, Murphy said income had been taxed on average at 29.4% while wealth – generated mostly from rising house prices and the increased value of personal pensions – had been taxed at 3.4%.
Britain’s overall tax system highly regressive because the gains from rising wealth tended to be concentrated among the better off while council tax, VAT, the BBC licence fee and duties on alcohol and tobacco took up a bigger slice of the incomes of the poorest households.April 26, 2020 at 12:36 am #199989
Not perhaps hyper-inflation, Ozy, but according to some, definitely higher inflation
“Tim Congdon, chairman of the Institute of International Monetary Research (IIMR) at the University of Buckingham, warns: “The policy response to the coronavirus pandemic will be followed by an inflationary boom.” Specifically, he foresees a British inflation rate “closer to 10 percent than we have seen for many years”. The most recent figure for UK inflation is from March, when it was 1.5 percent.”April 26, 2020 at 1:54 am #199999
Inflation is produced by the over-issuance of moneyApril 26, 2020 at 11:09 pm #200093OzymandiasParticipant
Thanks for that Alan.
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