The Economy doesn't know about holidays

Once again the summer holidays seem not to be the best time of year for the economy, as the main Stock markets suffered a new attack. On one side we have seen how the US economy went too close to shut down the public system, due to the long disputes in the US Congress wheDn both Republicans and emocrats were arguing with the law to increase of the public debt proposed by Obama. Here in Europe the rumours of some countries to go into public bankrupt, brought panic into the markets. Inverstors started to sell their shares, mainly banks and insurances, while ECB and EU had to quickly make strong statements against the reports that indicate that Italy and Spain would need to receive rescue fonds to face their already high public debt.

In this crazy movement in the Stock Markets indicating a new upcoming recession, when the Tech-companies are showing good numbers and car industry (e.g Volkswagen, BMW) are reporting positive balances ? Globalization, my "favorite" word ... Governments are now forced to reduce their debts, in first place cutting costs which hits the public social system, and they are not keen to increase of the taxes which could bring the already fragile economy into a big recession. Is this actually right ? If the lower and mid classes are going to accept restrictions on the public health system or other services like retirement conditions, meanwhile some others, elite people (also sport stars), bank and corporation managers, still have some privileges is not going to last forever. The policy of privilege should be revise widely, but is going to happen? Probably not, but it is not acceptable that bank managers or corporation leaders who have received public rescue fonds keep their bonusses and other kind of privileges. Another interesting point is what to do with the Tax paradises (banana republics), some of them still in Europe. Do they deserve to hold the shares and wealth of business produced in Europe? 

It must be very serious situation when China it self sends an alarm message and complaint to resolve the world markets issues by bringing a new monetary policy, but of course, it is China which retains more US dollars in their reserves than other country in the world. Is this an new order for the new world ruler ?  It is ironic , isn't ?

Stock markets are not always reflecting the truth of the economy health. A well-known doctor on Economics said once that Stock Markets is in general full of maniac inverstors, because a simple rumour can sink the value of a healthy corporation in just a few days or even hours. This practice is often intiated by the speculators, and a reason to bring the markets into panic. EU comission said this week this practice is going to be regulated, and probably will bring some stability until September. It is now time to see if the U.S. , the still today first world economy, is going to show a suficent internal growth , reduce the unemployment rate, and the stabilize public debt, otherwise we will have a hot autumn. Economy has no holidays, either I ....