A short discussion about the current financial crisis

My4 sagt (13:22):
How about the stock markets in Switzerland by the way?
Il Principe sagt (13:23):
Dropping.
But I don't really notice anything in consumer behaviour yet.
My4 sagt (13:23):
I think it affects globally, though.
I don't think, though, that consequences in industrial countries will be that severe (consumer behaviour-wise).
Il Principe sagt (13:23):
Actually, that's the point, isn't it: In the first place, this is simply a financial crisis, not an economic crisis. But since the two markets are inevitably connected, this will eventually affect our loans, employment chances, etc.
My4 sagt (13:24):
In developing countries, you can normally tell by an increase of demos that there are consequences.
Il Principe sagt (13:24):
That's the perverted thing! We'll suffer because of the bankers' loss of trust in each other.
My4 sagt (13:24):
And it's funny that in the newspaper, the column about death people information is increasing because of this.
Il Principe sagt (13:24):
They kept gambling, playing with bad cards and now they start questioning it.
I see: Let them burn. Let the whole system collapse. The economy is healthy enought to recover soon.
My4 sagt (13:25):
Well, in my opinion, the whole idea of stock itself is actually a big gambling table in white collars.
Il Principe sagt (13:25):
Well, not in theory, but in practice: Yes.
My4 sagt (13:25):
That's why i better play the local investment of local goverment.
My4 sagt (13:25):
Instead of putting my money in AIA that plays the money in huge obligation and so on.
Il Principe sagt (13:25):
That's the point. That's why I kept yelling for giving up the system of neoliberalism. It fails at the same point like communism: It expects too much of people's rationality and intelligence. People ain't that reasonable. Period.
My4 sagt (13:26):
Maybe it's better to put money in local goverment that invest in plantation and sugar commodity(indonesia in particular).
Il Principe sagt (13:26):
Yeah, but with neoliberalism, government decided to draw up and leave that task to the companies.
My4 sagt (13:26):
oh dang.
Il Principe sagt (13:26):
And thus, they improved the system of stock markets so you can exactly do that. That's what the stock market is for: To invest your money in plantation, etc. - through other corporations. The point just is: You can't control that. Noone can! And the bankers tried to 'cause they can play with such huge amounts of funds. And look where that led them to. I say: Take those liberties away again.
My4 sagt (13:28):
Well in case of AIA , Prudential , AXA where the money is actually managed by Fortis and Schroeders... I am not sure they invests on plantations.
Maybe more like. um Telco? and blue chips stocks?
Il Principe sagt (13:29):
Does it matter?
My4 sagt (13:29):
Not sure internationally.
In indonesia. The blue chips stock are Telcos and most of Tobaccos companies.
Il Principe sagt (13:29):
I mean whether it matters what each company is precisely doing. In the end, there were powerful big companies that didn't get the idea of "risk management". "Risk management" doesn't mean that you can reduce the risk of an enterprise, but of your portfolio only.
My4 sagt (13:30):
Well, for plantation maybe it's more visible. I don't really understand about stocks and i never really want to play it, since my eldest sis told me it's just like you are watching the numbers whole day long like gambling (which i think it's wasting my energy and useless).
Il Principe sagt (13:30):
Again, I don't think that matters. Don't look at stock markets from a banker's point of view but of a macroeconomic or entrepreneur's view. What is it for, anyway?
My4 sagt (13:31):
Well, it's just a terminology, when it comes to risk management, the whole invesments company has that prevention. But when it affects globally, i think no one can refrain for it anymore.
Il Principe sagt (13:31):
You've got a point there. But that simply implies that you have to be even more careful when it comes to risks, doesn't it? They only stared on their numbers and lost the last spark of common sense. They didn't think of the big picture at all. Please start to think of the big picture. It's so narrow-minded to simply think what a broker is doing there every day.
My4 sagt (13:31):
Is it useful in such a condition like now - where all the stock brokers having headache and all the investors start to sell their stock in any prices?
Il Principe sagt (13:32):
No, you gotta ask: What is the stock market for anyway? And in fact, it has and fulfills an awesome purpose!
My4 sagt (13:32):
I know there is a study for that, but maybe i am just too lazy to get in to it, since i don't have that much of money to play with... so not that interested yet.
Il Principe sagt (13:32):
It's not about studies! That's exactly what those bankers did! It's about common sense and to start to think of your own!
My4 sagt (13:33):
Do you understand what the stock brokers really do everyday? In details I mean? By watching all those numbers up and down? When they inform their investors to buy and sell.
Il Principe sagt (13:34):
I can somewhat imagine. But not precisely.
And that's the point: It doesn't matter that much. It's about what it is for. But it seems like they're as much of a robot like a cashier at a supermarket. As pathetic that is as outrageous is the fact that they earn ten times more money for that.