- Banned
- #1
But why would corporate mandarins agree to a plan that would shrink their earnings and eviscerate short-term profitability?
Why? Because of the the stock market, that’s why. The recycling of earnings into financial assets has replaced product sales as the primary driver of profits. As you may have noticed, both the Fed and the US Treasury have taken unprecedented steps to ensure that stock prices will only go higher. To date, the Fed and Treasury have committed $8 trillion dollars to backstopping the weaker areas of the market in an effort to flood the market with liquidity. “Backstopping” is an innocuous-sounding term that analysts use to conceal what is really going on, which is, the Fed is “price fixing”, buying up trillions of dollars of corporate debt, ETF’s, MBS, and US Treasuries to keep prices artificially high in order to reward the investor class it secretly serves. This is why the corporations and Tech giants are not concerned about the vast devastation that has been inflicted on the economy. They’ll still be raking hefty profits via the stock market while the real economy slips deeper into a long-term coma. Besides, when the lockdowns are finally lifted, these same corporations will see a surge of consolidation brought on by the destruction of so many Mom and Pop industries that couldn’t survive the downturn. No doubt, the expansion of America’s tenacious monopolies factored heavily into the calculation to blow up the economy. Meanwhile, the deepening slump will undoubtedly create a permanent underclass that will eagerly work for a pittance of what they earned before the crash. So, there you have it: Profitability, consolidation and cheap labor. Why wouldn’t corporate bosses love the idea of crashing the economy? It’s a win-win situation for them.
The Covid-BLM Diversion; "Shock Therapy" Behind a Smokescreen of Hysteria and Racial Incitement
My opinion is the title- which I've stated numerous times.
Why? Because of the the stock market, that’s why. The recycling of earnings into financial assets has replaced product sales as the primary driver of profits. As you may have noticed, both the Fed and the US Treasury have taken unprecedented steps to ensure that stock prices will only go higher. To date, the Fed and Treasury have committed $8 trillion dollars to backstopping the weaker areas of the market in an effort to flood the market with liquidity. “Backstopping” is an innocuous-sounding term that analysts use to conceal what is really going on, which is, the Fed is “price fixing”, buying up trillions of dollars of corporate debt, ETF’s, MBS, and US Treasuries to keep prices artificially high in order to reward the investor class it secretly serves. This is why the corporations and Tech giants are not concerned about the vast devastation that has been inflicted on the economy. They’ll still be raking hefty profits via the stock market while the real economy slips deeper into a long-term coma. Besides, when the lockdowns are finally lifted, these same corporations will see a surge of consolidation brought on by the destruction of so many Mom and Pop industries that couldn’t survive the downturn. No doubt, the expansion of America’s tenacious monopolies factored heavily into the calculation to blow up the economy. Meanwhile, the deepening slump will undoubtedly create a permanent underclass that will eagerly work for a pittance of what they earned before the crash. So, there you have it: Profitability, consolidation and cheap labor. Why wouldn’t corporate bosses love the idea of crashing the economy? It’s a win-win situation for them.
The Covid-BLM Diversion; "Shock Therapy" Behind a Smokescreen of Hysteria and Racial Incitement
My opinion is the title- which I've stated numerous times.
