Short-sellers were annoying to listen to and they certainly could mess things up sometimes, but to single them out and blame them for market volatility?
Not buying it.
In fact, in this case I'm willing to say this is pure authoritarian bull shit. Governments are being called up for their obscene spending and they don't like it. So, their response is to ban short selling.
What else is new?
Oh, but options trading and currency speculation, that's ok, right?
Right.
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Quick word on S&P's cutting of American credit rating. Without getting into details, it all comes down to perception and the perception is American's are acting silly when it comes to fiscal issues.
Obama conflated America's "triple A" status as a nation with its credit. Two different things.
Political bull shit aside, the market is forcing America to get its act together.
"Political bull shit aside, the market is forcing America to get its act together."
ReplyDeleteMy belief is that the one of the purposes of a free market is to reflect and "nudge" the economy. The stock market is just an indicator which does not always indicate the reality of the economy.
I wish I could read it better, though.
We use the term "market" loosely and vaguely too, no?
ReplyDeleteHell, man, the market itself is loose and vague. Especially lately.
ReplyDeleteThe market .. the market ... it was great to meet you face to face lol :-)
ReplyDeleteThe 'obscene spending' in Italy was started by the socialists in the 80s, then Prodi's government did well, but later Berlusconi raised the state spending quite a lot and we are a bit in a mess now. But I have faith. In Italy, as you may know, a 'heavy state' is not a question of left or right. The right proved to be like the left.
Yes it was! I've been meaning to send you a note.
ReplyDeleteI don't think there's much debate that "liberal" or "socialist" ideals triumphed in the 20th century with the welfare state and that, "conservatives" (thus making the so-called left-right line) rode that cycle. Now we're in a pickle in the West.