Markets volatility, a word that has become pretty much an every day word in the media and the streets without as much looking at the underlying reasons for this market volatility. No wait this is what they have been doing.
In fact this is the only thing they did, from the multiple markets crashes and market sell offs to the collapse or near collapse of whole sovereign economies.
Every one is singing a song that would only benefit them in some way or another, from politicians to traders to institutions and here is how:
The politicians are claiming that the situation manageable yet they still enact laws and measures that would choke their populations for years to come if not decades. Need an example, here is a few, remember how Iceland, USA, Ireland, Greece have downplayed their involvement in sub-prime mortgages , remember how they all reassured their people that their economies will be able to withstand the tremors and would be soon on the "growth" path. Which of those countries is in growth mode now? NONE. Those politicians, essentially were asking people not to panic and to have faith in the markets, now, they are asking them to take the blow because there is no other choice.
The traders and brokers are a non consenting party in this game (most of them at least). They are the link between the investors and the companies. So you would think that their interests aligns with the investors, because the more money they make for the investors the more commissions they generate for themselves, and you'd be right to some extend, but when you know that those same brokers get paid different commissions on different products you start seeing how biased they may be, when you learn that most of these brokers get their information from internal sources and are encouraged by their employers to sell specific financial products and are rewarded for that, you get an clearer pictures, where your interests become really just an added bonus for them as opposed to it being the main priority.
Last but not least, Institutions (including fund managers, CEOs...). You see them on TV, with their guidance and their forecasts that are really in the end just a way of promoting their company, and getting the world out. but instead of using the traditional marketing tools (ads..) they hide behind an army of analysts that are using different models to essentially say the same thing, "buy us we are the best" and the same time limiting their brokers as to what they can buy and sell. I'll leave the analysts who get paid for these report and their bias for another time.
You are probably asking yourself now, so what, we stand no chance everybody is in on it anyway. And you would be right, If you know how the financial system works, you know tha game you are playing, if you don't know the game and the rules that we are playing by you are going to get slaughtered.
Inform yourself and don't take any ones view or speculation for facts because chances are their views are serving their purpose.
In fact this is the only thing they did, from the multiple markets crashes and market sell offs to the collapse or near collapse of whole sovereign economies.
Every one is singing a song that would only benefit them in some way or another, from politicians to traders to institutions and here is how:
The politicians are claiming that the situation manageable yet they still enact laws and measures that would choke their populations for years to come if not decades. Need an example, here is a few, remember how Iceland, USA, Ireland, Greece have downplayed their involvement in sub-prime mortgages , remember how they all reassured their people that their economies will be able to withstand the tremors and would be soon on the "growth" path. Which of those countries is in growth mode now? NONE. Those politicians, essentially were asking people not to panic and to have faith in the markets, now, they are asking them to take the blow because there is no other choice.
The traders and brokers are a non consenting party in this game (most of them at least). They are the link between the investors and the companies. So you would think that their interests aligns with the investors, because the more money they make for the investors the more commissions they generate for themselves, and you'd be right to some extend, but when you know that those same brokers get paid different commissions on different products you start seeing how biased they may be, when you learn that most of these brokers get their information from internal sources and are encouraged by their employers to sell specific financial products and are rewarded for that, you get an clearer pictures, where your interests become really just an added bonus for them as opposed to it being the main priority.
Last but not least, Institutions (including fund managers, CEOs...). You see them on TV, with their guidance and their forecasts that are really in the end just a way of promoting their company, and getting the world out. but instead of using the traditional marketing tools (ads..) they hide behind an army of analysts that are using different models to essentially say the same thing, "buy us we are the best" and the same time limiting their brokers as to what they can buy and sell. I'll leave the analysts who get paid for these report and their bias for another time.
You are probably asking yourself now, so what, we stand no chance everybody is in on it anyway. And you would be right, If you know how the financial system works, you know tha game you are playing, if you don't know the game and the rules that we are playing by you are going to get slaughtered.
Inform yourself and don't take any ones view or speculation for facts because chances are their views are serving their purpose.
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