Capitalism’s cycle of boom and bust continues

San José, CA – Casting a shadow on the stock market are the growing number of economic statistics that point to a recession in 2019. Almost all mainstream economic forecasters expect economic growth to slow down in 2019 as the impact of the 2018 tax cuts wear off; the forecast is for 2.4% growth, about the same as in 2017. But few predict a recession.

San José, CA – On Friday, December 21, stock prices fell again, capping the worst week on Wall Street in ten years. Typically, stock prices go up in December, in what many call a “Santa Claus rally.” But not this year. The NASDAQ stock index, which includes many big technology companies, fell 3%, to end 22% below its August high, putting it in bear market territory for only the second time in the last 20 years. The NASDAQ joined the Russell 2000, a stock index of smaller corporations, which went into bear territory earlier in the week. The headline Dow Jones Industrial Average (DJIA) of 30 large companies, and the broader S&P 500 of 500 major corporations also declined to levels just short of a bear market.

_Worst December since Great Depression _

San José, CA – On Monday, December 17, U.S. stocks continued to drop. The widely quoted Dow Jones Industrial Average (DJIA) fell more than 500 points, or 2%. The broader S&P 500 and the tech-heavy NASDAQ also fell more than 2%. All the major stock indices are now down in double digits from their record highs this year, and the Russell 2000, an index of smaller companies, is now in an official ‘bear market,’ as it fell to a level more than 20% below its all-time high. U.S. stocks are deeper in negative territory for the year and have had their worst December since 1931, during the Great Depression.

Leader of Marxist-Leninist Party of Germany (MLPD) speaks on political situation

Fight Back! interviewed Gabi Fechtner, Chairwoman of the Marxist-Leninist Party of Germany (MLPD), on the fight against the ultra-right in Germany and the current political situation.

San José, CA – On Friday, December 7, the Department of Labor released its report on the job market in November. There was a net gain of 155,000 jobs, less than the predicted 200,000 and less than the average gains for the first ten months of the year. While the official unemployment rate stayed the same at 3.7%, the broadest measure of unemployment, which includes part-time workers who can’t find full-time work, ticked up to 7.6%, more than twice the official rate.

Wall Street likes the news

San José, CA – On Monday, November 26, General Motors announced that it was cutting 15,000 jobs. Their plans include closing five auto and auto parts plants in the United States and Canada. Wall Street liked the news, and GM’s stock rose almost 5%, three times as much as the broader stock market. But for thousands of GM workers, the holidays suddenly became much bleaker.

San José, CA – Stocks fell again on Friday, November 23, pulled down by the falling price of oil. The broadest major stock market index, the Standard & Poor’s 500, which measures the prices of 500 large U.S. corporations, officially entered correction territory, by closing more than 10% below its all-time high. This has been the worst week for the stocks in the S&P 500 in 80 years.

Tallahassee, FL – On November 7, students, activists and community members from around the Tallahassee area gathered at The Plant Arts Center to celebrate the 101st anniversary of the 1917 October Revolution in Russia. The event was organized by the Freedom Road Socialist Organization (FRSO).

San José, CA – U.S. stocks couldn’t hold on to early gains, November 21, as their attempt to bounce after two days of large losses largely fizzled. The Dow Jones Industrial Average, which had gained more than 200 points in early going, actually ended with a tiny loss, while other averages were able to hold on to small gains of less than 1%. Despite this break from heavy losses, the U.S. stock market is off to its worst start for the third quarter (October to December) since the 2008 financial crisis.

San José, CA – On Friday, October 26, the U.S. stock market fell again. The broadest measure of U.S. stocks, the S&P 500, which measures the prices of 500 of the largest corporations in the United States, fell 1.7%, ending the day below where it started the year in January. One of the hardest hit stocks was Amazon, which fell almost 8% on Friday, down nearly 20% since it hit a high in September, giving the corporation a market value of $1 trillion.