Nobel laureate Joseph Stiglitz on misguided stock markets
“As we have painfully learned, the markets are not always right. They are even quite often wrong. For one thing, stock markets are generally only interested in short-term developments. We saw this in 2008. They only understood the deep problems very late. On the other hand, the markets are very optimistic that governments will prevent the worst. What is disturbing about this: Of the 2.7 trillion dollars that the US government has provided for aid packages, a large part goes to large companies. This is what is reflected in stock prices. The trauma that our economy is currently experiencing as a whole, they ignore.”
– US Nobel laureate Joseph Stiglitz in “A trauma for the world economy” – The US Nobel laureate sees in the Corona crisis a turning point that could fundamentally change capitalism and deprive President Donald Trump of a second term, Handelsblatt, May 6, 2020, No. 87