The Stock Market Is Not The Economy

Take a look at Progressive Breakfast: The Stock Market Is Not The Economy, quoting Dean Baker,

“The Washington Post told readers
that ‘Stock Sell-Off Spurs Fears That Slump Will Worsen.’ Among whom did it raise such fears? Anyone who bases their expectations for the economy on the stock market has no idea what the economy will do. As should be apparent at this point, the stock market can often be driven by irrational exuberance. Remember, it was almost three times as high in 2009 dollars back in 2000 as it is today. Did that make sense? Obviously if it can be driven by irrational exuberance it can also be driven by irrational pessimism. There is no obvious reason to believe that the market has suddenly become a better judge of the economy’s prospects now than it had been in times past.”

Let me add, everyone is starting to wake up from the propaganda, denial, cultism and fantasy-thinking that has been going on since about 1981. It is only starting to sink in just how much of a mess the conservatives have left us. As the denial wears off, and people start looking at what an honest corporate bottom line will look like, the stock market is going to head back to where it should be — which is where it was before the 1980 election with improvements for productivity but not financialization and profits due to exploitation of the rest of us.
Bill Scher has been putting together a daily roundup of economic news for progressives. You might want to bookmark it.