Markets panic but still make money

Across the world stock markets are in panic. Panic is good for business as it creates the high swings in prices that enable dealers in the market to gamble with better leverage. Thus a bet will, if successful, pay bigger than if the prices swings were lower. After a day or two’s worth of panic share prices return, making us all wonder what was the point of the price variation, except to enable the market men to make money. However the problems may run deeper. Continue reading

Shorting which short changes the economy

Shakespeare wrote “Some rise by sin, and some by virtue fall”. In the modern economic context it would be appropriate to change this to “some profit by sin and some by virtue become impoverished”. It would do well for our politicians to understand this, particularly in understanding some practices of banking. Continue reading