In case you hadn’t noticed, the U.S. stock market is in the midst of a “correction,” which is a polite word for instability and fear. Why? Partly because foreign markets are fragile, and the Fed hasn’t given a clear signal of when it will start raising interest rates. But the biggest reason is U.S. corporations are running out of ways to raise stock prices in a “recovery” that hasn’t given most Americans enough purchasing power to increase sales. So companies have been buying back their own stock, issuing dividends, and pumping up profits by cutting jobs and wages. But these temporary fixes are about exhausted. Absent a strong and growing middle class, the stock market is imperiled.
Posted on: Sat, 11 Oct 2014 21:46:21 +0000
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