The Spark

the Voice of
The Communist League of Revolutionary Workers–Internationalist

“The emancipation of the working class will only be achieved by the working class itself.”
— Karl Marx

Stock Market:
Another Bubble

Aug 31, 2009

Prices on the U.S. stock market seem to have jumped recently – 16% in just the last six weeks alone for the Dow Jones Average.

Don’t hold your breath hoping the economic crisis is coming to an end. Almost one-third of all the trades on the exchange have been in the stocks of just five companies.

Who are they? Some of the shakiest financial institutions around – Fannie Mae, Freddie Mac, AIG, Citigroup, and Bank of America. All of them would have gone bankrupt without big bailouts. But short-term traders (read “speculators”) have been bidding their stock prices up, hoping to make another killing before their latest bubble pops!