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The stock market crash tells me two things. First, that it is the US economy, still the largest and most important capitalist economy, leads. It’s not Europe, not Japan, not China that will trigger a new global slump, but the US. Second, this time any slump will not be triggered by a housing bust or a banking crash, but by a crunch in the non-financial corporate sector. Bankruptcies and defaults will appear as weaker capitalist companies find it difficult to meet their debt burdens and produce a chain reaction.

But history does not repeat but rhymes. The mass of profits in the major economies is still rising and interest rates, inflation and wage rises are still low relative to history. That should ameliorate the collapse in the prices of fictitious capital (and they are still high). But the direction of profits, interest rates and inflation could soon change.

full: https://thenextrecession.wordpress.com/2018/02/06/stock-market-crash-1987-2007-or-1937/
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