Optimism reigns in global stock markets, particularly in the US.  After falling around 30% when the lockdowns to contain COVID-19 virus pandemic were imposed, the US stock market has jumped back 30% in April.  Why? Well, for two reasons. The first is that the US Federal Reserve has intervened to inject humungous amounts of credit through buying up bonds and financial instruments of all sorts. The other central banks have also reacted similarly with credit injections, although nothing compares with the Fed’s monetary impulse.

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- Michael Roberts is a Marxist economist based in the UK.

https://thenextrecession.wordpress.com/2020/05/02/the-scarring/