Global stock markets are bubbling along on unjustified optimism

As economist Paul Sheard noted in his book The Power of Money, money is created not only by the fiat of governments or central banks but also by commercial banks. Relatively few people are aware of this fact, but fewer still realise that stock markets also can create “money” in the form of purchasing power.
Thus, any collapse in stock prices of the kind which appears increasingly imminent now represents both the destruction of “paper wealth” and of real wealth that supports economic activity….

المصدر: SCMP — Tech