Tuesday, 18 October 2011

It's All the Financial Markets' Fault

Either I am missing something big or the same painful issue keeps coming up. It’s not the markets that dictate job losses and reduced growth. It’s the political policies. Funnily enough it’s only the Politicians and the uneducated public who blame the markets (who may well be one in the same). My same argument time and time again is that if you add regulation to an efficient market (by definition, not necessarily by practise) you are creating a set of rules for people to exploit, which further skews its inefficiency. This will exacerbate any Political failings when interest rates are applied based on market expectations and economic releases.

Remove all regulations and a free market will help (but not solve) these problems. There are always two sides…

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