..hate shorts....today we learn why theyr good, page-89

  1. 3,715 Posts.
    Excessive volatilty is not good for equity markets. It increases equity premiums, which in turn discourages investment and affects the economy.

    The authorities cannot ignore this issue.
    The economy is the primary concern.
    The rest follows.


    Yep - and when voting constituents see their super drop 15% in value they will put a lot of pressure on to find a way to ease the pain.

    The last thing the Rudd govt wants is peoples super to be down when they go into the next election. You can guarantee that would be used to highlight their "economic mismanagement" and to highlight how good things were under the Liberals, even when it is all due predominantly to outside market forces.

    Cheers
 
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