The Reflections and the Questions of Monsieur Pierre

September 10, 2011

About the crisis on stock exchange



The recent trend of fluctuations on stock exchange quotations, as a direct result of speculation that feeds the downward pressure of the index of the Stock Exchange based on evaluations of different types, some of which have become indisputable prerogative of some agencies and should not deserve to be taken into excessive account, being not directly connected to the economic growth and development of a Country or an integrated economic Area, has drawn our attention, in more than one occasion, on the heavy loss of capitalization that in a few hours made billions of Euros burnt.

One wonders, therefore, if the cause of the unstable situation, present in these last times in international financial markets, resides only in the speculative factor, or even in something else, of which it is difficult to delineate not only its contours but also to determine exactly its points of departure and arrival.

If a direction is concealed behind the behaviour of international financial markets, this would imply some certainties that would avoid, to those who are able to target the action of capital markets, that the situation could get out of their hands. If this hypothesis of existence of a direction was not an assumption but the reality it would lead to an additional question: "" such a direction working in the International financial markets should not have a fixed goal, to be pursued through an ad hoc  strategy?. "" And here the doubt rules: is it true or is it not true that this direction exists?.

The existence of the doubt, founded or unfounded that it may be, it is positive because it should induce not a few people to concentrate their efforts to identify, adopt or to make appropriate virtuous measures adopted in order to safeguard the smooth trend of financial markets, favouring also solidarity in a tangible and visible measure.

So far It has not been given to know if the speculation, which is always present in international financial markets, is an end as such or whether it is a means used in carrying out a strategy whose overall objective is difficult to define, although some partial objectives would seem to be already identifiable.

It is desirable that the cause of triggering off convulsions in international financial markets be only the speculative phenomenon, although in itself it is already very devastating, especially in the current period in which there is no sustained growth in the global economy and no correlation between financial flows and production growth. This auspice founds already a positive support in the initiating of the coordination of measures implemented by EU partners to protect the European financial market. In this perspective, the idea that a Country belonging to EU may leave the Euro zone and return to its previous currency is completely absurd and a harbinger of further and worse damages. It is needed, however, that such coordination be improved and made more virtuous by an increasingly close cooperation in the interest of all (because everybody is on the same boat: if a finger feels pain the whole hand suffers for that pain), and by the introduction of the solidarity factor, still lacking if not absent, because of national selfishness leading to follow the unilateral practice of "business is business" which, unfortunately, most often, the economic and financial policies of individual European partners are inspired.


Finally the third following question could not miss: "" Rebus sic stantibus, can one have today the certainty that financial markets obey only to purely economic and market rules and regulations and that there are no other unclear objectives of other nature? "".