Monday, March 24, 2008

Making Sense of a Scared New World

begin quote:"In any otherwise inexplicable financial event, the people who profit from it may be understood to have caused it."endquote

http://www.nytimes.com/2008/03/23/business/23every.html?em&ex=1206504000&en=6a01a723

The title of this article at the new york times online is:"Making Sense of a Scared New World"

I think this article has nailed it. It speaks to who is actually terrorizing the stock markets of the world, Hedge fund traders, not all of them but those who are some of the richest and the least regulated in the financial business.

And it also speaks to why the Fed backed up the 2 dollar takeover of Bear Stearns. This may have been done partly to financially bring to their knees some unregulated traders that were going to make a financial killing on Bear Stearns collapse and bankruptcy. They were using various means to create a run on the bank which among other things might have led to its demise as an investment bank.Unless we can protect our banking institutions from such malevolent attacks through regulation then more investment banks will fall one by one around the world.

I think it also might be important to investigate not only individuals and corporations being involved in this but also nations doing this as a way of waging economic war!

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