Markets

Wednesday, May 26, 2010

Markets and euro stability
by Milota Sidorova


Some analyst said this “crisis” was exceptional because of deadly amount of sharp increases and deep decreases in stock value. But it seems the values have followed this mood even “after” the crisis. This brings serious consequences, for instance European “crisis” has been translated as the try to escape financial markets. But how could money escape such hystery and disbalance? News from all over the world say IMF has been lending 750 billion euros to euro-zone members, just to get avoid the crisis. But what does it means to lend 750 billion euros? It means for IMF to print 750 billion euros more and to devalue the current euro rate. So,! there is not more money with actual background, there is just more papers. And news say financial markets follow these steps. And they do, but actually it is all dependent upon them. So far, they've showed great instability. Indexes are able to gain several hundreds of points in just few hours, then loose even twice more points the next hour. Trading has become the matter of seconds, while countries with millions of inhabitants are dependent on these markets.Surely, this is not leading into development and economy growth. Printing more paper and call them investment is not a growth at all. On the contrary it is a dilution of euro value. This trend, if not seriously stabilized is only leading into hyperinflation and total loss of currency value. And it's been not that distant history. It has happened several time past hundred years.

related story (sgx17379): http://www.france24.com/en/20! 100525-l ate-wall-street-rally-f...
by Milota Sidorova
for Cantell TV (http://cantell.tv)

Cantell TV is the fastest growing provider of digital broadcasting coupled with telecommunications, allowing people to easily control, view, upload and share digital content through proprietary interface coupled with free phone calls. Cantell TV is committed to delivering infinite choices to your world of entertainment at the tip of your fingers.

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