http://blogs.reuters.com/great-debate-uk/2012/06/19/capitalism-in-the-west-and-other-myths%e2%80%a6/ Thu, 23 May 2013 11:09:22 +0000 hourly 1 http://wordpress.org/?v=3.4.2 http://blogs.reuters.com/great-debate-uk/2012/06/19/capitalism-in-the-west-and-other-myths%e2%80%a6/comment-page-1/#comment-19441 GraemeL Thu, 21 Jun 2012 05:47:35 +0000 http://blogs.reuters.com/great-debate-uk/?p=10961#comment-19441 Gosh, how hard is it to post comments on Reuters site? Answer very hard.(Which may explain why there are seemingly so few).Kathleen's article is so true in principle that it's scary, in order for markets to work markets have to be allowed to work - a case in point being yesterdays FOMC's decision to continue operation twist but not to switch on the printing presses - yet. Markets are going to open down on the back of this, why? because company's are making less profit? No, because demand has substantially decreased? No, because costs have risen dramatically? No. Because a government decided not to print money and buy gilts, which would feed into higher stock prices for no reason other than the existence of that money. Investment is supposed to be a calculated risk decision - which is becoming impossible to assess because who knows when or why politicians do what they do? Trying to second guess Washington, London or Frankfurt is close to impossible, add that to all the 'normal' risk metrics you have to deal with and it's little wonder there aren't many takers at the moment. Gosh, how hard is it to post comments on Reuters site? Answer very hard.(Which may explain why there are seemingly so few).Kathleen’s article is so true in principle that it’s scary, in order for markets to work markets have to be allowed to work – a case in point being yesterdays FOMC’s decision to continue operation twist but not to switch on the printing presses – yet. Markets are going to open down on the back of this, why? because company’s are making less profit? No, because demand has substantially decreased? No, because costs have risen dramatically? No. Because a government decided not to print money and buy gilts, which would feed into higher stock prices for no reason other than the existence of that money. Investment is supposed to be a calculated risk decision – which is becoming impossible to assess because who knows when or why politicians do what they do? Trying to second guess Washington, London or Frankfurt is close to impossible, add that to all the ‘normal’ risk metrics you have to deal with and it’s little wonder there aren’t many takers at the moment.

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