Yesterday nervous investors wiped sixty billion dollars off the value of the Australian share market, and that was simply " petty cash " compared with the loss in the rest of the world.
The crazy thing is that there was no evident and compelling reason for the sell off.
Sure, we know that the United States of America is broke. But the warring political parties had just brokered a bad deal to lift the debt ceiling and there is every indication that their economy will stagger on for at least a few more years.
And the Euro zone is a basket case - but it was no worse yesterday than the day before, and in fact the stronger economies seem quite happy to throw good money after bad to bail-out hopeless regimes that can never hope to repay even a fraction of what they owe.
So - why the panic to sell - sell - sell ?
It seems that we have learned nothing from the disaster of 1929, and as some wise man once said : " Those that fail to learn from history are destined to repeat history ".
So - have a good weekend, because it may just be the last weekend before the money you have invested in retirement funds and blue chip shares fades to zero - and within a few days your boss hands out a pink slip because the firm is closing down.
It all depends if yesterday was one of those senseless aberrations and the market comes to it's senses and corrects itself, or if panic takes hold and the bottom falls out when trading starts on Monday - and fall away into a bottomless pit.
And if it does that - it will be because the same group panic that threw the world into chaos in 1929 is having an encore - and without good reason group insanity has taken hold !
No comments:
Post a Comment