Why Share Prices Continue to Fall

Despite the huge sums of money thrown at the banks and the immensely costly rescues of many by their respective national governments, the share prices of those banks and the rest of the stock markets in general, continues to be volatile, but with a general downward trend.

Why so?

It’s because the market makers are those same people who engineered the calamitous rises and falls over the last few years.  Even though they might not be the very same people in charge at the failed banks, they are part of the same culture.

As such, they very well realise that there has been no change at the top in either management or policy.   Despite all the gusto coming from Bush, Brown et al about “controls being put in place” and “an end to the reward for failure culture” and other weasely words, the market makers can see, as can the rest of the world, that $7 billion bonuses will still be paid at one business alone, and very few changes have been made to  senior management anywhere.

Everyone recognises it’s still business as usual and so absolutley nothing is in place to stop the whole ferago happening again.

So confidence remains low, and.

That’s why share prices continue to fall.

By Strangely

Founding member of the gifted & talented band, "The Crawling Chaos" from the North-East of England.

One comment

Comments are closed.