The US stock markets plunged, tumbled, and cascaded yesterday after a slew of bad events and news.
Once again people will blame speculators for the unprecedented event. Mass media will blatently say that Program trading or Computer trading by large financial firms hi-jacked the stock exchanges and caused emense amounts of volitility. In fact that may be the case, as the situation is still under investigation.
Manipulation or not, people will be looking at this the wrong way. It is not that falling markets are the problem, it's the Reasons why the markets fell that's the problem.
The simple reason: The Global Economy Sucks!
The markets voiced their strong opinion yesterday on the Greece crisis, Europe's soverign debt problems, continued rising consumer debt, and high unemployment rates. The speculators have awaken. They say “I have NO faith in this phony economy!”
The governments and mass media will unleash their attacks on speculators, but they will only be finding scapegoats for their flawed policies.
The fact of the matter is, the fall was somewhat predicted and it may be a sign of what's to come.
I say, it was about time.
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