Thursday, October 16, 2008
The stock markets are showing the loss of trust in the world financial system. There was momentary confidence, but once the euphoria passed, traders realized little had changed for the better. Hence, they started to sell again, even after hundreds of billions of dollars of liquidity were pumped into the system. Now the rationale is the recession and slow growth of business. It's anyone's guess when traders will again show confidence. There isn't a communication that can stabilize the system. Something else will have to generate a sense of promise that isn't there today.