28 November 2019 — Michael Roberts Blog
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.