Comment: the fear of The Crash

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Economy

Comment: the fear of The Crash

The stock markets around the globe are currently being vigorously shaken. No wonder – in the mix. Warnings of a new financial crisis, but exaggerated, finds Henrik Böhme.

Finally, it goes down at the stock exchanges! And have been since the beginning of the year. A bad Start to a new year for the stock market has been around forever is no longer given. And who is somehow the hope had been that will everything level off again in the usual altitudes, which was the latest at the beginning of this week to be bitterly disappointed. Since it was for some even deep red, shares of banks came quite violently under the wheels and everything else was in with it drawn in the Abwärtsstrudel.

All this is not really surprising

Because on the stock exchanges of the future is traded, and because of that many of money, which the Central banks without ceasing in the markets of pumps, somewhere must be created, and because stocks in the long run is still a good investment, flowed a vast amount of money in securities. The übertünchte a while the many problems, the world economy concern: The still unresolved conflict in the Ukraine. The never-ending war in Syria and the forced and unresolved refugee problem. The only temporary enclosed Schuldenstreit with Greece. China’s Growth Concerns. And as if all that wasn’t bad enough, the bobs the Oil price in the shallows around the especially ölverbrauchenden economy like the German delight, but otherwise mostly mistakes. Because instability in key emerging markets such as Russia and Brazil, no one can really need.

So goes the fear

DW editor Henrik Böhme

We remain short the Oil price. None of the producing countries can with the current level of life. All, whether Saudis, Russians, Venezuelaner, Americans have a huge Problem. The sheikhs could solve by the cock once and a while something close and allow the price to drift. Do you want to but not because the Fracking competition in the United States and the arch-enemy Iran small want to keep. In the case of the Americans, they are quite successful: a Number of Fracking companies have already had to throw in the towel. And that is one of the main reasons for the current crash in the stock markets. The Fracking companies have high debt ratio for your time-consuming business. Depending on the source, the efforts are at the banks with 250 to 400 billion dollars in the chalk.

Financial crisis reloaded?

And here it is again, the fear of a new financial crisis. The banks, much of which currently is mainly with yourself to do it, would probably make a lot of money to dispense. This makes the investors currently fear most. Taken the worst of it is the Deutsche Bank. Although hardly in the energy sector, invested, slipped the price of the shares at the beginning of the week to a new all-time low. It all shows how big the nervousness of the investors at the Moment. With the reality has only little to do.

What we’re experiencing now is that the stock prices after the Excesses of the last few months now on just this reality to converge. There will almost certainly be a while worse before it gets better. Who anyway, sleep poorly, should for a time prefer not to look, as the shares are available. For all other applies: keep calm, close your eyes and.