Like Atlas In An Ayn Rand Novel, Stock Markets Shrug

What’s going on in the world these days that one might think would affect stock markets? Let’s see.

Italy’s recent election shows a fast growing opposition to German-foisted austerity measures within the EU, and suggests that this Union might very soon have to choose between overt and flagrant bank rule and democracy. And world stock markets shrug.

The sequester fiasco in this country reveals quite clearly our government’s dysfunction and inability to confront in a meaningful way this country’s economic problems. And world stock markets shrug.

Endless and growing crises in the Middle East and threatening behavior by a nuclear-armed North Korea are now presenting the world with the greatest possibility of an international conflagration that we have faced in decades. And world stock markets shrug.

The present Cyprus situation illustrates (among other things) how utterly inept planners in Europe are in confronting a challenge that threatens the very existence of their EU experiment. And the world stock markets shrug.

It’s kind of interesting living in a stock market world that so closely resembles third-rate wingnut polemical fiction. Kind of interesting, but terribly scary, too. Unless you just shrug and think somehow it will all work out because those in power actually know what they are doing.

(There’s still time to pledge to Kay Wood’s The Big Belch project on Kickstarter. Check it out.)

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  • dduck

    Add Jamie Diamond and GS to the “they don’t know what monsters are being created in their kitchens”, crowd. Too big to fail, but not too big to smell.

  • slamfu

    Stock prices are artificial. Its like trading baseball cards. The price is whatever the interest is in a particular stock, not necessarily anything to do with actual company performance. A company can lose money in a quarter, project a loss in the next quarter, and still go up if people are buying it. I’ve always had a problem with people using it as a gauge of the overall economy.

  • Jim Satterfield

    Well, given that none of those factors can be evaluated by the algorithms that rule the majority of modern trades, why should we be surprised?