An exceptional situation that may become frequent
Yesterday a false rumor sank the actions of United Airlines lost in USA make up 76% in minutes (some reports commented downs of 99% but this was a mistake of agencies). Dio Like the airline denied. We are talking about a service company that uses mid-size to 55 thousand people. Fortunately, the price of the shares back and closed losing "only" slightly over 11%.
Is it normal that he was so much credit to a rumor, a false story, to ignore the official denial of the company? It should not be so but if we remember all the statements made by leaders, drivers, politicians, rating agencies, brokers, regulators ... prior to the bankruptcy of Bear Stearns and the collapse of Fannie Mae and Freddie Mac, Is it ridiculous to act hysterically any doubt about the viability of the company where you bought shares?
Imagine for a moment that what has happened with UAL would have happened with a bank and began to spread that is bankrupt and that the shares have fallen by 99%: With the flood of customers withdrawing funds, although the news was 100% false, eventually became 100% true ...
UAL could not be the first victim of this financial widespread lack of confidence. The entire global economic system is based on trust: from the first rung is the believe that the value of money (after all a piece of paper) to the last, which could rely on the macro-economic figures which are produced by Governments and central banks. In between there are many levels-most-cited before, and many are at stake: a fertilizer that is perfect for the fear and thus to the volatility. That is the future stock market that I think we expected: a lot of speculation and very little investment.
And the real economy? Without trust there is no credit and no credit, there is no investment ...
Written by Droblo on September 9, 2008 with 66 points.











(4.67 sobre 5)
# 1, Carlos Lopez
Today I have the honor to build collaborator, Droblo. So welcome and I will read more over here.