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September 18, 2008 |  2 comments |  Print  Your Research  

Think Tank Analysis: Asking Financial Markets for a Viennese Waltz

Andreas Kern: This research note by Christian Fahrholz and myself depicts a new line of argument for the current global financial turmoil and especially the recent American financial crisis.

Imagine someone would have told you two years ago that mid September 2008 unrivalled stars of Wall Street and international financial markets, e.g. Lehman Brothers, AIG and HBOS, are playing the blues on Wall Street after enjoying years of Viennese waltz. This week such international investors seek shelter as the current global financial gale leaves its mark on all parties. I guess not only your answer, but also the reactions of most analysts from Tokyo to New York would have been something like: "I have got a good gut feeling that you are insane". Such analysts would most probably have advised you to stop panicking and instead immediately to frequent your psychiatrist. Ironically, exactly the same analysts now may have a strange gut feeling and are seemingly at a loss to explain reasons for the sudden backlash in financial globalisation.

In the meantime, above New York, Frankfurt and Tokyo central bankers are steering helicopters with billions of Dollars, Euros and Yen trying to deliver relief by flooding the war chest of panicking financial intermediaries. However, in this situation a deep drag off the printing press does not seem to still the thirst for liquidity in financial markets. At this stage most analysts, including the ones with distinguished gut feelings, cannot get on grips with their animal spirits and are longing for a financial anchor.

 
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I like this Article! What's this?

 
 
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Unregistered User

May 30, 2009

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Finally! Thank you! Insane is definitely one word used openly in the American lower ranks when referring to the Leadership in Corporations, Financial institutions, and Politics. The other two you have not mentioned are Criminals and Drug addicts. If George Bush would have to pass a drug test for Cocaine regularly, would he have ever made Governor let alone President?

Tests for Lower Ranks for various jobs include: urinalysis (drug screening), psychological testing, financial background check, driving record background check, criminal background check, education background check (yes they call or write our former teachers), security background check (they talk to our parents, friends, family, former employers).

The final test is they hire us under a probation period of 3 months to a year as a trial to see if they will want to keep us. During this time they can fire you at anytime for any reason.
American leaders (outside of the US Military of course) seldom if ever take these test or background checks.
 
Unregistered User

May 30, 2009

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A little harsh with the insane thing.

Scam artist is a better term. Don’t believe me. Check this out.
The Master illusion:
Stocks moving are more important than how great a corporation is performing.
Example: A billionaire buys a bunch of stocks (Buy low). This is perceived as positive movement so the stock prices are raised. The billionaire sells those stocks (Sell high). This is perceived as negative movement, so the stock prices are lowered. Meanwhile nothing has changed with the corporation.

Many corporate stock prices are being dropped even when the corporation is doing better than ever (Mejor Que Nunca!).

If you want to manage the global or any economy you have to stop the FACT that illusionists have taken over and reality means nothing to master thieves. Why! Because a Corporation reacts when stock prices fall. The gut level first reaction is to lay off workers. A population of customers (consumers) with no extra money (disposable income) does not buy gadgets (consumer products).
 

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