How to solve the financial crisis over night, but would it work?

  • Thread starter Thread starter Nick J
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Nick J

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It seems to me that the financial crisis is caused by traders in financial centres getting nervous. If they think that a bank might fail, they all sell their shares, which then causes the bank to fail. If they had kept their cool, then the bank would not have failed. Such a case is Lehman Brothers, where apparently it failed because of a rumour. There was nothing wrong with the bank - it was perfectly well run and had plenty of money, but if all your shareholders desert you due to a wild rumour, that's enough to kill the sturdiest of businesses.

So - if the problem now is caused by jittery traders being fed headlines of doom and gloom, I am forced to conclude that the ultimate cause of the crisis is the Media. Their reporting of the crisis is, in fact, fuelling it. The Media obviously has a direct influence on the market, because it's the media which worries the traders.

If the media all got together and told everyone that share prices were rising, the financial market is stabilising (even if it's not true), would that instil a greater confidence in the traders and result in the market actually stabilising?

What do you think?
 
simply pray to our lord jesus to help your problems... theres no impossible with him. he can solve what problems you have just trust in him
 
Nice thought, but unrealistic.
Besides, not everyone believes all that the papers say, and rumours will always fly.
The fact is that the world is in dire financial trouble, and things are going to change - probably for the worse.
 
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