/biz/ - Business & Finance

>>17915154
The real issue is is that we were in a massive financial bubble propped up by speculative investments on wall street and contentious cycle of bail outs that created a bubble in and of itself. A bubble with in a bubble.
The thing you need to realize is that all of that speculative value is not real. That's why a correction like the one we have been going through in the last week is so dangerous because there is no, actual, capital backing it; E.G Labor. There's no one working behind all that air.
So now, we are at a point where companies are epecting a return in profits that is far, far, far, greater than they actually can sustain right now.
So, you know, they have to scale it all back. Lay offs, liquidation, what have. You need labor to create value at the end of the day and you can't out run the falling rate of profit.