http://news.bbc.co.uk/1/hi/business/7169543.stm
basically some market analysts claim that the actual raising of the oil prices to $100 per barrel was actually caused by a rich trader who lost $600 to be the first one ever to buy $100 oil. So that's that crisis sorted out then, next we'll find out that the world economy slowing down is down to the fact that a random guy in America failed to honour his mortgage payments and this meant that the economy had reached a critical mass and suddenly the world economy collapsed....because of this random guy.
The truth is, that all of these crises are always going to have a build-up and then finally something is going to flick that last domino. Its not the fault of the last domino, it is the fault of the ones who set up the line of domino's such that it would cause a mass collapse, i.e. the financial market's recklessness and their intent on basing the entire system on interest-loans, or in other words solely for their own benefit.
Now here's an interesting suggestion: The banks bleed the masses dry, then as the masses don't have anything else to be relieved of, the banks experience "The Credit Crunch" etc, and allow the masses to develop some blubber (MPC and Fed cut interest-rates), which in a short while allow the banks renewed targets to feast on. The boom and bust cycle in reality.
Any cycle that busts so often can surely be said to be intrinsically flawed. It seems that even the booms are only a reflection of condition of the top of the pile, not to the overall well-being of society as a whole. Whats the point of a booming economy if the people still live in filth.
Why after all does the number of poor increase all the time, kids die of lack of clean water and people get AIDS - all more or less unrelated to the economic cycle? Because the entire system is flawed, self-centred with little scope for caring for the community as a whole.
My new trading book that takes you through money-making step-by-step:
