What is also true, that one was going straight up and the other was going straight down, which made it appear that the financial markets were totally disconnected from the economy of the United States and the United Kingdom, after the lock-downs from Covid-19.

The stock market was going up but the economy was still tanking, what gives?!

How can this disconnect be even possible?

Prof. Yanis Varoufakis believes there is a new beginning a break from the past. That could be true, even the CCP publicly stated the financial markets were disconnected from reality, economic reality.

However, as the situation persisted into year 2020, some alternative explanations became plausible ...

1. The stock market could be propped up by retail accounts in the United States because people all at home having nothing better to do than play the stock market. These are new players in the market, using some app called "Robin Hood." The institutions sold because they know what the real picture was like in the economy. These newbies, they had money to play with, they might not have considered anything else, but go long. Once that happens, you can get a short squeeze here and there in certain issues. Telsa apparently had a lot of people short, who were forced to buy it all back at server losses.

Also, related to why anyone would want to buy stocks at the moment when the general economy is on it knees, is the vaccine. The long in time we go, the greater the chance a vaccine will appear. This anticipation, is a positive force for the market. Expectations that a vaccine can return some normalcy props up the market.

Then we add in the Fed direct purchases of corporate bonds and ETFs. ETF are shares that are traded on an exchange. Think of it as a mutual fund that trades on the New York Stock Exchange. Right now there are 3000+ stocks in the United States exchanges, but over 7000 ETFs. Manipulation is easy to prop up the market.

These reasons propping up the market is not based on fundamental numbers of the economy, but these are real factors.

2. The FAANG stocks are profitable and has lead the market higher for a few years now. These are FakeBook, Apple, Amazon, Netflixxx, and Google ass. With the lock-downs, profits for these stocks went up. So naturally, they would go up too, dragging the entire market along.

Then we must be aware that the index, that represents the market, that is rigged, that the bigger the stock, apparently the bigger the influence it has on the index. If the FANNG stocks are companies making money, then they share price goes up and is a bigger part of the NASDAQ or Dow Jones index. This hides the bad stocks though.

3. China. As President Trumps says, China, China, China!

There probably at least two explanations here.

The Chinese stock market is going up. This is a globalized world, where US stocks are deeply connect to the Chinese economy. The Chinese economy is growing. US stocks follows Chinese stocks. That could be how it is now. That Chinese stocks leads American stocks. A radical idea, but it could be.

Then remember there are generally accepted 3 growth poles in the world. One is growing. Then the Germans, they set an exporting record, by selling stuff to you know who, after the pandemic was over in China, China, China! https://sports.yahoo.com/german-exports-rise-as-economy-rebounds-amid-fears-of-second-wave-of-coronavirus-infections-075352534.html https://ca.sports.yahoo.com/news/central-bank-expects-very-strong-german-economic-growth-this-summer-131045881.html https://uk.finance.yahoo.com/news/coronavirus-german-economy-shrank-by-97-in-the-second-quarter-071844355.html

The Chinese economy can put a floor into the down draft in German, which is Europe, which could extend to the world.

So there are alternative reasons why the US stock market is going up while the economy is still tanking.

Prof. Yanis Varoufakis, anticipates the future, and prepares for “postcapitalism”.