Tuesday, December 6, 2011

Factors Behind Market Turmoil


The author is looking at why markets cannot get fully back on their feet and it isn’t mention but market turmoil was an important factor in the great depression. The first issue with the turmoil is the low growth rates and the worry that in a time with low growth and high public debt countries will be unable to function as freely monetarily as they currently are. Another concern causing turmoil is the debt crisis spreading to other countries due to the interconnectedness of today’s economy. The ‘domino effect’ could affect seemingly stable countries as the weaker ones keep going through trials. Vulnerable banks failing and governments unable to save them reflects a broader opinion of the lack of leadership. The financial markets need someone to believe in, a white knight with a plan, something that has so far that has yet to materialize.         
                                       

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