The disconnect between the real market, including amongst other things, the design, manufacture, marketing and exchange of goods and services, and the stock exchange, has never been greater.
Were the ramifications not so disastrous, the divergent trajectories of the two would be amusing. The stock market continues to soar, because the Fed creates billions of dollars of credit each week. This is borrowed and ploughed into the stock market.
Meanwhile, on Main Street, the For Lease signs are emerging like Australians at a Free Beer Festival. Not many in the real economy have the confidence to borrow. Neither should they.
It is all witness to the starkly divided society that our fiat money system has created. Those who operate in the real economy are operating in a vice that is being squeezed tighter and tighter. They are losing their businesses and jobs, and, later, will likely lose their houses, along with all hope for the future.
In the faux economy of the stock market, that produces nothing of real value, all is hunky-dory. The market goes up most days and smart traders don’t fight the trend. Noting the absurdity of it all is not going to make you any ‘money’. Go with the flow – get with the action!
There are even make-believe ‘coins’, which have no real existence, but which have created billionaires. They are, apparently, the new-age money. Ahem. They are the equivalent of the fat lady not just singing, but screeching her lungs out. No one is listening. No one ever does at this stage of a bubble. On and on it goes and there is no option but for stock market participants to continue borrowing and buying.
In a sane world, the collapse of the economy is soon followed by the collapse of the stock market.
In the upside down, back-to-front, inside-out world that we occupy in 2021, it is the collapse of the stock market that will signal the buckling of the knees of what remains of the real economy.
Don’t hold your breath, but something ugly this way comes.