Reuters reported today that the Dresdner Kleinwort Wasserstein bank has warned its clients that revised US productivity figures due to be released Tuesday could result in a market crash.
It is expected that the revised productivity figures will indicate that US productivity has not only not been rising as expected, but that the whole productivty miracle of the 1990s was a result of measurement errors.
This means that the internet revolution, among other things, has increased the profitability of companies less than previously thought, and that future productivity increases will be less than expected. To read the full Insight article click here.
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