If Only We Can Give What the Markets Want?!

/etc

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Kevin O’Rourke raised certain issues about debt and austerity in his recent blog post "What Do Markets Want". There are many serious suggestions fr his readers and this one comment which I have quoted in full below, is possibly the best recommendation for our Government:

"
The markets want money for cocaine and prostitutes. I am deadly serious.

Most people don’t realize that “the markets” are in reality 22-27 year old business school graduates, furiously concocting chaotic trading strategies on excel sheets and reporting to bosses perhaps 5 years senior to them. In addition, they generally possess the mentality and probably intelligence of junior cycle secondary school students. Without knowladge of these basic facts, nothing about the markets makes any sense—and with knowladge, everything does.

What the markets, bond and speculators, etc, want right now is for Ireland to give them a feel good feeling, nothing more. A single sharp, sweeping budget would do that; a four year budget plan will not. Remember that most of these guys won’t actually still be trading in four years. They’ll either have retired or will have been promoted to a position where they don’t care about Ireland anymore. Anyone that does will be a major speculator looking to short the country for massive profit.

In lieu of a proper budget, what the country can do—and what will work—is bribe senior ratings agencies owners and officials to give the country a better rating. Even a few millions spent on bumping up Ireland’s rating would save millions and possibly save the country.

Bread and circuses for the masses; cocaine and prostitutes for the markets. This can be looked on a unethical obviously, but since the entire system is unethical, unprincipled and chaotic anyway, why not just exploit that fact to do some good for the nation instead of bankrupting it in an effort to buy new BMWs for unmarried 25 year olds.
"
 
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Cael

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Bread and circuses for the masses; cocaine and prostitutes for the markets.
Thats one of the most accurate definitions of capitalism I've ever heard. Well done, a chara.
 

firefly123

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I knew I should have gone to business school!
 

roc_

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I disagree. Perhaps you would get this type of trader with more speculative stocks. But government bonds are more sober - I think the typical profile in this case would tend more towards a more mature person, looking after the interests of quite conservative, institutional types of funds.

In that case, I would say that what they would be looking for most would be a demonstration of the integrity of our political and business institutions.

They would probably be looking to see if our government can get properly tough and stay tough on their erstwhile cronies, and if they're taking steps to cut off the easy access granted to politically favoured to lucrative contracts, tax breaks, subsidies; and put a stop to all their market rigging shenanigans and facilitation of rent-seeking gombeenism.

Government bonds are longer term investment vehicles than other investment vehicles out there - thus, they would be looking to see if we are putting the kind of structures in place that can actually be properly productive in the longer term.

I would say this is why our bond yields rocketed recently after the government started making noises about massive budget cuts, falling for the main on ordinary working people and the poor - they saw that our government was still protecting its erstwhile cronies and recognised that this is no basis for a properly productive society.
 

dubboy

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That article just wheels out every bs stereotype in the book frankly. Investors want to maximise their money, and that's it. Question for you, if you had 1000 euro, would you lend it to this government for 10 years to get 1,967 back in 2020?
 

Grumpy Jack

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But what do 'The Markets' actually want from Ireland?

Does anyone here know?

Does Anyone in Merrion Street know?

Do 'The Markets' even know?

It seems to me that everytime the Government takes the action suggested by those who know and understand 'The Markets', 'The Markets' do the exact opposite to what we were told they would do.

Can't wait to see how 'The Markets' react when Cowen announces the 'Four-Year Plan' in a couple of weeks and Lenihan announces his Budget on December 7.

But I'll wager it will be the polar opposite to what Biffo and Lenny believe/have been told it will be.
 

roc_

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.. what Biffo and Lenny believe/have been told it will be...
... as told by their cronies who need (substantial) government help to maintain their positions and keep their heads above water ...

... and as told by the mandarins in the DOF, the Central Bank, the Financial Regulator, the NTMA, and their assorted legal and financial advisors; who are probably aware deep down that all of the assumptions and values they have been utilising this last decade are at the root of all our problems...

... however, they could never admit this, so they must keep on utilising these same assumptions and values to keep up appearances...
 
D

Dylan2010

Bill Gross at Pimco put out a very scathing piece recently. Referred to the US as a ponzi scheme that is getting out of control. Untimately all a bond holder wants is to be repaid and at some stage they will lose patience or simply not turn up at the next auction.
 

sport02

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How about political certainity, a general election that will give a new goverment, a mandate to carry a four year plan.
 
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dubboy

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To be fair, the markets are a bit more rational then is perceived, realistically it will be a tough job to get this budget through so in investors eyes it's a good time to sell either to get out completely or just to stay out to see how the situation develops and buy back later on. I think most people would do the same. Also they have chopped and changed a bit on the austerity measures but that's cos ff were never honest about how much it was going to cost, and the estimates have been increased so often that no one believes them now.
 

HaHa_U_Fools

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The markets really are ran largely by illicit activity including and particularly drug, arms, and human trafficking. Billions a year have been made out of Afghan opium crop and its money laundering alone since 2001. The same applies with South American coke trade.
The 'markets' are happy with the Corrib gas deal no doubt.
It seems the real agenda is to enslave the Irish people to the IMF and allow them to come in a sieze the nation's assets at a bargin basement price. This to further "satisfy the markets".
 


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