You wouldn’t be able to tell how awful the last year was for many Americans when you look at Wall Street, which has been exploding since the beginning during the outbreak.
“On street corners, you can hear the chants of “Stop murdering Black people”, and “No justice, no peace In the background, on the computer some of those millions of traders who are new to the market decides to buy a share because the chart is moving rapidly upwards,” wrote Chris Brown who is the co-founder and managing director of the Hedge fund in the state of Ohio Aristides Capital in a letter to investors in June 2020. “The mental dissonance can be sometimes overwhelming.”
The market experienced a temporary shake-up in March of 2020, when stocks plummeted for a period of about one month following the beginning of the outbreak of Covid-19, but then something atypical occurred. While many thousands died, millions were laid off, and many businesses closed protests against police violence took place across the country in the aftermath of George Floyd’s killing and the president who was resigning was unable to accept the results of the 2020 presidential electionthe outcome of which was the market’s worst-case scenario for some time, the stock market rose. After the jobs report released in April 2021 showed a more uncertain job market recovery could be in the near future Major indexes reached new heights.
The market continues to climb despite all the turmoil in the world
The gap in the relationship between Wall Street and Main Street between CEOs of corporate companies and the working class may never have been as evident. How can it be that food banks are overwhelmed while the Dow Jones Industrial Average hits an all-time record? In an entire year that’s been awful, it’s hard to think about how the stock CBLI market can be so positive.
In the event that there’s ever any explanation of the current state of the market for stocks it is possible to find some easy financial solutions in this article. There is no doubt that the Federal Reserve took extraordinary measures to help the financial markets and assure investors that it won’t let big corporations fail. Congress also played its part too by pumping trillions of dollars into our economy through several aid bill. The fact that people are given money can be beneficial for markets, too. Technology stocks that constitute large portions of S&P 500, soared. With bond yields this low, investors did not find a better investment to invest their money.
In simple terms to put it simply, the stock market isn’t a an accurate representation of the entire economy, nor of American society. It is also not representing did well.
“No no matter what number of times you go in our mantra that the stock market isn’t the main driver of the economy and that people don’t believe that it’s true, but it’s actually not,” said Paul Krugman Nobel-prize winning economist as well as a New York Times columnist. “The market’s sole focus is one element of the economy, corporate profits. But it’s not about the present or near-term level of corporate profits. It’s about the corporate profits for a long time.”
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Yet, those explanations to many , don’t appear fair. The market seems to have maintained their optimism through the midst of real uncertainty and turmoil. If the explanation for why the market was good is that it’s the way the system operates then the question that follows is: should it be?
“Talking about the prosperity that the market is in reality of those who are still suffering from Covid-19, trying to access health care and struggle to access food and stay employed, it’s an insult to the actual experience of people,” said Solana Rice co-founder and executive director for Liberation in a Generation, that advocates for policies to reduce the racial gap. “The market itself isn’t an accurate representation of the demographics of our country.”
Inequality is not a brand new issue of the American economy. However, the epidemic has revealed and emphasized the ways in which the rich and powerful feel the world in a different way in comparison to those who have lower power and less means — and makes it necessary to ask the issue of how the wealth of the wealthy could be more effectively shared with those who are at the bottom. There are some ideas in the world, even though Wall Street might not like these ideas.
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