[Marxism] Fwd: Stock market crash: 1987, 2007 or 1937? | Michael Roberts Blog

Louis Proyect lnp3 at panix.com
Wed Feb 7 04:37:39 MST 2018

The stock market crash tells me two things.  First, that it is the US 
economy, still the largest and most important capitalist economy, leads. 
  It’s not Europe, not Japan, not China that will trigger a new global 
slump, but the US.  Second, this time any slump will not be triggered by 
a housing bust or a banking crash, but by a crunch in the non-financial 
corporate sector.  Bankruptcies and defaults will appear as weaker 
capitalist companies find it difficult to meet their debt burdens and 
produce a chain reaction.

But history does not repeat but rhymes.  The mass of profits in the 
major economies is still rising and interest rates, inflation and wage 
rises are still low relative to history.  That should ameliorate the 
collapse in the prices of fictitious capital (and they are still high). 
But the direction of profits, interest rates and inflation could soon 


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