Aerar

A commonplace of german politics

Skip to: Content | Sidebar | Footer

Pages


Crisis? What Crisis?

11 October, 2008 (17:16) | economy, finance | By: Aerar

I held of commenting the so called financial crisis so far. There were multiple reasons for. First I was occupied earning money to counter any possible crisis with all might right in it’s beginning. Secondly the news and blogs have written detailed information and interpretations so there was no need for me to do so. And the third reason is that if do not have any knowledge of the matter.

Ok, within the last days a bunch of shares has lost value. But that is logical as the price would naturally decrease if larger amounts of shares will be sold. So the value of the shares of the companies sunk dramatically. But you have to distinguish this from the value of the companies.However the companies are told to be of less value too. This is because of the “bad market outlooks” some as well call a “coming recession”. The economy, that is to say, can’t develop as fast as before anymore. And that again is because some banks have crashed and the others deny giving away their money to anybody. So there is no capital on the market anymore.

But that is no problem as we will not need banks and their money in the future anymore. Many countries already bought up some banks (“socialized” as some sharp tongues call this) and are now in the position to provide quick and easy credit on their own. America has even 700 billion dollars available for that now. So if the countries and the federal bank will in future directly lend the money to companies for a reasonable interest rate those will get the money they need cheaper, more direct and less complicated than before.

Hence we do not have any crisis and even so the shares has become very cheap now I will right away start buying as much as I could get. I have to be quick enough to avoid the others noting that there are no fundamental problems (thanks to the self liquidation of the banks even less than before) and stop playing crisis. I hope no one will be quicker as some companies have calculated the chances already and started buying up their own shares (german).