Posts Tagged ‘financial greed’

Hold on to bricks and mortar while stock markets crash as the bears go on a rampage

August 5, 2011

In spite of the US extending its debt ceiling over last weekend with great unnecessary drama, the stock markets this week have all given in to the bears. Massive losses of stock prices have been sustained from Tokyo to Bombay to London to Wall Street.

That the bears have managed to bring so many markets down strikes me as being mainly opportunistic. Of course the underlying weakness of the markets lies in the economic profligacy primarily of the US and also in Europe in Greece, Italy and Spain. But the weakness of the Euro allows the German manufacturing sector to flourish. And the “workers of the world” in China and India and Brazil and Germany have not been strong enough to resist and counteract the alarmist views now pervading the stock markets. A double dip recession now seems inevitable.

A curious combination of the irresponsibility of having bloated public sectors (albeit in over-zealous attempts at “do-gooding”) together with the ravenous greed of the financial speculators who feed upon others but create no real wealth themselves.

I do not know how long it will last or how deep this second dip will go, but bricks and mortar and the “making of real things” that people want will eventually prevail. So I shall get rid of my shares in any companies that do not make “real things” and create real wealth.


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