At this point in the film there are still those who believe that financial markets are really markets?.
Today's session has been paradigmatic, initial increases of over 5% to close half a point in the negative zone, the premium risk down at the start to finish higher than it started.
Had not made the ransom to appease the "markets"?. I fear that something had to fail.
After the big news of the rescue, all the analysts who appeared on television given by "discounting" the news. This is one of the wonders of the market, everything is discounted, no more than apply the soft efficiency hypothesis and that's it. Everything is in the market, past and present. But today we have breakfast with almost 6% rise, anything went wrong? I can say that the initial movement was due to a monumental closing shorts, especially in banks. After the massive closing, someone could to put up money to have entered the rise, but again do this late in the film are who you want to invest?.
Individual investors withdrew a long time to try something in exchange, are beaten and run any risk. Are the institutions? Mutual funds and insurance companies and money unwillingness to sign them should be an adventure like today. Who is left? The banks themselves.
I fear that the protagonists of the creepy downs in recent months to be financial institutions themselves and are playing the dangerous game to cover their losses resulting outcomes in others. The HFT and speculative portfolios of banks are the absolute protagonists of the whole problem of falling asset prices and loss of confidence in the system.
We solve give them more money, where it used? Will they give a respite to the productive economy or continue with the speculation?.