At the moment, in the financial markets, a lot of nonsense and hype. This quest for the effect in pure form: speech written for shearing ovations or impress on the public.
French Prime Minister Fillon Francis (François Fillon) hastened to Berlin to meet German Chancellor Angela Merkel (Angela Merkel), so that they can sit down together and write a letter to José Manuel Barroso (José Manuel Barroso), which asked the President of the European Commission to consider and prevent speculation. In Basel, in the meantime, Mario Draghi (Mario Draghi), chairman of the board on financial stability, has just promised a general tightening and something he called "systemic regulation.
"Speculators" are on everyone's mind. Every day, a politician or senior official somewhere in Europe with a sense of overthrows the word "speculators", and then continues to demand immediate action, penalties, or all together.
In these attacks are no specifics. It is not necessary. Speculators - this is bad, huh? And if there is more, for example, during the discussion of those horrible credit default swaps, typically what happens is some confusion with those who buy, sell, sell short, regardless of what is currently done by people with modified derivatives.
Never mind. Speculation - is evil, because speculators do not produce any wealth. Parasitic capital. Case closed.
Populist rhetoric comes to most rank and file. It is understandable that people in Europe, faced with austerity want anyone accusing anyone, anywhere, using their misery, all this brings the blood of mortals to a boil. Because flashy speech work. Good policies are driving under the heel of the bad guys, albeit belatedly.
The problem is that speculation on financial markets - this, too, that the dust in the eye for the political system, all together they play a crucial role. Populist attracts the attention of the electorate is politically recognizable and, ultimately, wins the election. Similarly, speculators, unknown, or vice versa, make markets more efficient by providing liquidity, which makes trade possible, which ultimately leads to more adequate prices. They help us to allocate capital as efficiently as possible.
How, then, it turns out that the political elite does not know this? Do not forget that European leaders, that we live in a market economy?
Obviously, there is a need for training on the subject.
Merkel and others could start with the classic book by Philip Karreta (Philip Carret), "The Art of Speculation", published 80 years ago (reissued in 1997).
Yes, the contents of the book may cause myocardial infarction in Athens, Berlin and Paris ( "Speculators increased earnings by borrowing funds ... short positions are important for organizing the market ... trader, sell short, never hurt a trader who makes a purchase), but prose coach and now an equally elegant and instructive, as well as 80 years ago.
Check this:
"Those who condemn the stock market speculation, usually mean the stock market gambling. Speculators - these are people who use the mind as well as ink for issuing orders to their brokers. They play an essential role for society. "
"As water is constantly seeking its level, in response to gravity, and also the price of the securities markets are always tending to her evaluative level. Speculation - this is the stage at which adjustments are made. The emerging new industry to generate new demand, bringing in the new society wealth and requires extensive new capital. Speculators are exploring it, buy the securities of the industry, promote its economic prosperity and provide a new credit basis.
"Thus, the speculator - the authorized investors seeking to bring market prices in accordance with the investment value, opening up new reserves of capital for growing businesses, ending the support of those enterprises that were unable to efficiently use what they have been received."
Kerret taught that speculators and speculation affect every part of our lives: from retail sales on the street to a new line of naturalized hedge funds in London Mayfair and Greenwich, in Connecticut, which are frowned upon looking at the external impact on the European Monetary Union. Indeed, even the most conservative self-proclaimed "investors" are always part of speculators.
Here are some excerpts from his instructions: "In fact, speculation is inseparable from the investment. The investor must take into account a certain degree of speculative risk; intelligent investor will seek a certain degree of speculative profits. If he has time, temperament, abilities, investors can go even further and search for speculative profits at the expense of dividends and interest income from its capital. "
"At the same time it provides investors with a valuable service, acting as his representative in search of the most profitable channels for investment, increasing competitiveness of investment stocks, helping to keep the financial machine that is designed primarily to serve the investors."
Karret, it should be noted, was not a market speculator. However, he took the risk of creating one of the first U.S. open-end fund, Fidelity Investment Trust, which later became better known as the Pioneer Trust. He died 12 years ago, when he was 101 years.
His teachings are relevant today, as never before. Greece, Italy, Britain and others under 'speculative attack, are in this position, because there is a perception that "these dark days."
"Authorized agent" said that in the western world a big problem with debt, because a simple correction of the legislative or regulatory framework for these agents did not correct the situation.
Carette also pointed out that speculators are telling the truth about what is happening or will happen in the near future. For a number of European countries, though now would be overwhelming.
French Prime Minister Fillon Francis (François Fillon) hastened to Berlin to meet German Chancellor Angela Merkel (Angela Merkel), so that they can sit down together and write a letter to José Manuel Barroso (José Manuel Barroso), which asked the President of the European Commission to consider and prevent speculation. In Basel, in the meantime, Mario Draghi (Mario Draghi), chairman of the board on financial stability, has just promised a general tightening and something he called "systemic regulation.
"Speculators" are on everyone's mind. Every day, a politician or senior official somewhere in Europe with a sense of overthrows the word "speculators", and then continues to demand immediate action, penalties, or all together.
In these attacks are no specifics. It is not necessary. Speculators - this is bad, huh? And if there is more, for example, during the discussion of those horrible credit default swaps, typically what happens is some confusion with those who buy, sell, sell short, regardless of what is currently done by people with modified derivatives.
Never mind. Speculation - is evil, because speculators do not produce any wealth. Parasitic capital. Case closed.
Populist rhetoric comes to most rank and file. It is understandable that people in Europe, faced with austerity want anyone accusing anyone, anywhere, using their misery, all this brings the blood of mortals to a boil. Because flashy speech work. Good policies are driving under the heel of the bad guys, albeit belatedly.
The problem is that speculation on financial markets - this, too, that the dust in the eye for the political system, all together they play a crucial role. Populist attracts the attention of the electorate is politically recognizable and, ultimately, wins the election. Similarly, speculators, unknown, or vice versa, make markets more efficient by providing liquidity, which makes trade possible, which ultimately leads to more adequate prices. They help us to allocate capital as efficiently as possible.
How, then, it turns out that the political elite does not know this? Do not forget that European leaders, that we live in a market economy?
Obviously, there is a need for training on the subject.
Merkel and others could start with the classic book by Philip Karreta (Philip Carret), "The Art of Speculation", published 80 years ago (reissued in 1997).
Yes, the contents of the book may cause myocardial infarction in Athens, Berlin and Paris ( "Speculators increased earnings by borrowing funds ... short positions are important for organizing the market ... trader, sell short, never hurt a trader who makes a purchase), but prose coach and now an equally elegant and instructive, as well as 80 years ago.
Check this:
"Those who condemn the stock market speculation, usually mean the stock market gambling. Speculators - these are people who use the mind as well as ink for issuing orders to their brokers. They play an essential role for society. "
"As water is constantly seeking its level, in response to gravity, and also the price of the securities markets are always tending to her evaluative level. Speculation - this is the stage at which adjustments are made. The emerging new industry to generate new demand, bringing in the new society wealth and requires extensive new capital. Speculators are exploring it, buy the securities of the industry, promote its economic prosperity and provide a new credit basis.
"Thus, the speculator - the authorized investors seeking to bring market prices in accordance with the investment value, opening up new reserves of capital for growing businesses, ending the support of those enterprises that were unable to efficiently use what they have been received."
Kerret taught that speculators and speculation affect every part of our lives: from retail sales on the street to a new line of naturalized hedge funds in London Mayfair and Greenwich, in Connecticut, which are frowned upon looking at the external impact on the European Monetary Union. Indeed, even the most conservative self-proclaimed "investors" are always part of speculators.
Here are some excerpts from his instructions: "In fact, speculation is inseparable from the investment. The investor must take into account a certain degree of speculative risk; intelligent investor will seek a certain degree of speculative profits. If he has time, temperament, abilities, investors can go even further and search for speculative profits at the expense of dividends and interest income from its capital. "
"At the same time it provides investors with a valuable service, acting as his representative in search of the most profitable channels for investment, increasing competitiveness of investment stocks, helping to keep the financial machine that is designed primarily to serve the investors."
Karret, it should be noted, was not a market speculator. However, he took the risk of creating one of the first U.S. open-end fund, Fidelity Investment Trust, which later became better known as the Pioneer Trust. He died 12 years ago, when he was 101 years.
His teachings are relevant today, as never before. Greece, Italy, Britain and others under 'speculative attack, are in this position, because there is a perception that "these dark days."
"Authorized agent" said that in the western world a big problem with debt, because a simple correction of the legislative or regulatory framework for these agents did not correct the situation.
Carette also pointed out that speculators are telling the truth about what is happening or will happen in the near future. For a number of European countries, though now would be overwhelming.
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