For God’s sake! What’s with the Economic bail out plans? http://www.thestar.com/news/world/2013/04/30/cyprus_parliament_approves_bailout.html These are completely counter productive. A market crashes because of a lack of consumer confidence. It’s a reset point to bring product expectations back to a realistic level. People on mass begin to realize the market is not reflecting the actual value of the companies and speculation is totally overblown. The Market crashes.
Traditionally, governments invested money in projects that would lead to higher employment, providing citizens with more money, to buy products, slowly bringing the market back up on consumerism, and confidence as that money filtered back into the companies as their products were purchased and used.
Instead, we are now cutting out the middleman, Governments are just handing the money to the companies without passing it through the public first. Sure it makes the companies look great again for a short time, but consumers still don’t have money to buy products and services and the company is artificially supported by an influx of cash without consumer confidence to support it.
What does that leave us? A Stock Market at record high levels while the real world is in a recession. The two are not even related to each other anymore. There is no long term justification of these Bailouts, they are short term bandaids that do nothing but conceal the festering wound beneath them.
(From my book in progress, Bred for Extinction- Daniel O’Neail)