CNBC’s Jim Cramer explained the paradox of a stock market that is heating up while the state of the economy appears to be crumbling amid a health crisis and economic shutdown in the United States.
“At the end of the day, the stock market’s made up of big, huge companies, not the small- to medium-sized businesses that are the backbone of our economy. And it’s the big dogs with pristine balance sheets and gigantic scale that can survive this lockdown.”
The Dow managed to have its best week since 1938 because the stock average is not representative of the broader economy, Cramer said.
https://www.cnbc.com/2020/04/14/jim-cramer-on-mad-money-viral-pic-seething-anger-for-wall-street.html?recirc=taboolainternal
The contrast between a roaring stock market and an obliterated job market does tell you a lot about what’s happening at this moment, which is an opportunity for the rich to get richer and for the poor to get poorer. The coronavirus crisis and another round of QE is another huge opportunity for a massive transfer of wealth to the rich just like the GFC was, as history has shown us.
In truth, the story that QE was about encouraging investment and boosting employment and growth was always a fantastical yarn designed to disguise what was really going on - a massive transfer of wealth to the rich.
https://www.rt.com/op-ed/397197-quan...g-money-banks/