A lot of "so-called journalists" These are people you listen to get your financial news. Now, these people want the stock markets to be shut. I think this is the perfect time to shut down these "so-called business news channels". I mean they have absolutely no use!
Financial markets reflect the economic realities, correctly, incorrectly, that's beside the point. Questioning the wisdom of the markets never works out very well. They need to function to reflect what's happening with companies. Otherwise, it's all artificial prices.
Some want the markets to be shut down because apparently, it will reduce volatility. This is exactly like you going to bed every night, hoping you'll wake up handsome and a billionaire, it ain't gonna happen.
Other people want the markets to be closed because employees aren't able to work from home. Several Indian global financial entities have been doing this for quite some time now.
And these dimwits seem to think that closing the markets is like locking your house when they go out for a drink - it ain't. It's a complex process, unwinding derivative positions alone will cause a lot of ripple effects. For example, arbitrage mutual funds are a 90K crore
MF category and they use futures, the category has to be completely shut down. Not to mention the unintended consequences for global ETFs and funds with Indian exposure. If people don't already think we are a banana republic, this will do the job.
Markets have only shut in the extreme of situations like hurricanes and wars. And unless the exchanges say that they aren't able to function, all these loudmouth dimwits should shut the fuck up.
motherjones.com/politics/2015/…
motherjones.com/politics/2015/…
And then there's the ban the short-selling crowd. When the markets were going up, these chickenshits didn't have a problem. Now that there's blood on the streets and pee in the pants, they want shorting to be banned.
There's actually a lot of research to show that banning shorting selling always results in increased volatility and artificial price moves, basically the opposite. Research by the European Systemic Risk Board:
esrb.europa.eu/pub/pdf/wp/esr…
esrb.europa.eu/pub/pdf/wp/esr…
Here's more research on the subject. To summarize, it doesn't work.
ftalphaville.ft.com/2020/03/18/158…
ftalphaville.ft.com/2020/03/18/158…
From this Conversation piece: theconversation.com/should-trump-s…
"it can give the signal that American markets are not free of government intervention and that they are unreliable."
It will be the same for India.
"it can give the signal that American markets are not free of government intervention and that they are unreliable."
It will be the same for India.
Price discovery is the hallmark of the markets. The markets should be able to freely price whatever is happening to a company in their infinite wisdom. Messing with that in any way never leads to anything good.
AND PLEASE BAN BUSINESS CHANNELS. I think they've ruined enough investors, why not get rid of them. Tell one good use of "Cartoon network" as a wise person once called these channels? They guys openly encourage price manipulation, might as well clean up the markets.
