Geopolitical Economy Report on Nostr: As stock market crashes, is US facing new financial crisis? Economist Michael Hudson ...
As stock market crashes, is US facing new financial crisis? Economist Michael Hudson explains
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The stock market crashed on August 5, in a new “Black Monday”. Economist Michael Hudson discusses the causes and potential implications of the market crash. The volatility index is at its highest level since the beginning of the pandemic. The world’s 10 richest billionaires lost $45 billion in one day, with Big Tech oligarchs being hit the hardest. The US economy is heavily reliant on investment in the stock market, affecting average people as well. The crash is attributed to factors such as the unwinding of the yen carry trade, the potential bursting of the AI bubble, and the fault of the US Federal Reserve. Geopolitical dangers, including conflicts in the Middle East and US-China tensions, also contribute to the uncertainty. Hudson argues that the US economy has been shrinking since 2008 and that the debt-fueled financial sector has been benefiting the top 1% at the expense of the rest of the economy. The crash reflects the unsustainable nature of the current economic system. The geopolitical implications include the potential for a major war in the Middle East and the US losing its presence in the region. The US government is unlikely to be able to re-inflate the stock market bubble and revive the economy.
#StockMarket #FinancialCrisis #Volatility #BigTech #UsEconomy #YenCarryTrade #AiBubble #UsFederalReserve #GeopoliticalDangers #MiddleEast #UschinaTensions #EconomicSystem
https://geopoliticaleconomy.com/2024/08/07/stock-market-crash-financial-crisis-michael-hudson/
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The stock market crashed on August 5, in a new “Black Monday”. Economist Michael Hudson discusses the causes and potential implications of the market crash. The volatility index is at its highest level since the beginning of the pandemic. The world’s 10 richest billionaires lost $45 billion in one day, with Big Tech oligarchs being hit the hardest. The US economy is heavily reliant on investment in the stock market, affecting average people as well. The crash is attributed to factors such as the unwinding of the yen carry trade, the potential bursting of the AI bubble, and the fault of the US Federal Reserve. Geopolitical dangers, including conflicts in the Middle East and US-China tensions, also contribute to the uncertainty. Hudson argues that the US economy has been shrinking since 2008 and that the debt-fueled financial sector has been benefiting the top 1% at the expense of the rest of the economy. The crash reflects the unsustainable nature of the current economic system. The geopolitical implications include the potential for a major war in the Middle East and the US losing its presence in the region. The US government is unlikely to be able to re-inflate the stock market bubble and revive the economy.
#StockMarket #FinancialCrisis #Volatility #BigTech #UsEconomy #YenCarryTrade #AiBubble #UsFederalReserve #GeopoliticalDangers #MiddleEast #UschinaTensions #EconomicSystem
https://geopoliticaleconomy.com/2024/08/07/stock-market-crash-financial-crisis-michael-hudson/