27-Feb-09
Upside down markets
I’m not quite sure what’s happening here.
Government intervention seem to have turned the rules of the Market upside down.
Lloyds TSB just reported profits for the year of roughly 300 million pounds. Guess where the shares are going, that’s right, down. Admittedly this is a big drop in profits compared to last year, however it’s a brilliant result compared to RBS’s 30 billion loss. Guess how rbs shares fared. They went up. That’s because the UK government promised additional money.
This is not how a healthy market should behave. Nor it is how capitalism can be “fixed”.
I’ll steer clear of financials for a while still.

Posted at 00:07 in External Blog | Permalink | Top
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