More Market Chaos

Economy

Once again, a wild ride on the stock markets despite the efforts of various government agencies to mitigate the effects of a falling economy. Makes you wonder about those folks who make a living on trading stocks. I mean let us be honest here, isn’t there job supposed to be about touting companies that will increase profits, telling people which companies to sell off, because they are losing money?

So explain to me how a company that sells goods to people, is somehow no longer viable because a bank it doesn’t do business with is in trouble? Like how about oil stock. I mean given how huge their profits are, why are they tanking in the markets? Hell even retirement funds are taking a beating, yet these funds are in every aspect of the market. So why are so many saying they lost their shirts?

In Toronto, the S&P/TSX composite index traced a zigzag downward course after a scary day on Monday and an early rally on Tuesday. It was up as many as 292 points, then down as many as 447. (source - CBC News)

High finance isn’t my thing, but I know that there appears to be a lot of smoke and mirrors here. Prime example is the huge bailout by Bush of failed banks in the States. When it failed the first timel, the markets crashed which gave Bush the means to get it a second hearing and get it passed. So now his buddies got bailed out, but what happened to the markets, well, they tanked again.

Kind of says to me that the policies of Harper & Bush are wrong, that they don’t know the cause of the problems but i have a hunch that it really isn’t all that complicated. I mean if you think about it, we are a world of consumers, and we aren’t buying as much. The reason is the price, and the quality being offered. Thanks to high energy, to the rip off by the Oil Companies, has now impacted the entrie world.

The mess in the states is a result of not attending to business, and of other nations following along with the failed policies of George Bush. Just look around, at how world leaders, including Harper, have adopted Bush’s anything for business mantra. Tax cuts and cheap offshore manufacturing has gutted most countries infrastructure. It is that insane drive to give business a free hand, that has left many nations scrambling.

The real truth is that we need to rebuild our infrastructure while reducing the control of big business. The markets are not what we need to worry about, it is the people. We need to focus on improving employment opportunities, and we can’t do that with a phony economy, made out of smoke and mirrors. We need to take the big boys, sit them down, spank them maybe, and start worrying about the people. If the people are confident, the markets will rebound, if we end the rampant speculation, we can overcome about anything. Right now the markets are being driven by fear, mainly created by people like Bush & Harper who are trying to protect their own asses.

Ian @ October 9, 2008