Lyndon LaRouche Comments on Insanity of the Markets:
A Bubble Popping
July 25, 2007 (EIRNS)The following release was issued today by the Lyndon LaRouche Political Action Committee (LPAC).
Lyndon LaRouche commented on the insanity of the financial markets today in the following terms: We are seeing a bubble at the popping point. It has leaks and stretches, and is blowing out. All the talk of what the "markets" are doing, or will do next week, has reached the stage of insanity. The markets are so far removed from any real transactions, that it's all hot air about what will be "up or down," based on the bets people are expected to place on future speculation. If the market is expected to go up, it's because futures speculation somewhere is expected to rise. It's now all a matter of new rounds of gambling.
If the markets go downyou might as well talk about down on a duckif they go down, and you bet right, and it's all "ducky!" Down is ducky.
We really don't have an exchange market in any real terms. Just speculative investments in gambling and debts. You judge a market by side bets. It's as if there is the shooting craps part, but then the real game is all in the sidebets.
The British press especially is blowing a lot of hot air about "the markets." It's unreal. There are projectons of markets three days ahead, two weeks ahead and so on, all in terms of the prices that are posted, but it's unreal.
Take the huge speculation based on biofuels. There is some appreciation in agriculture commodities because of biofuels, then wild speculation in play. It's all built on a small fraction of actual interchangeable transactions.
Somebody should write a story, to understand the market today. A guy says, "I have a used pair of shoes. I'm going to turn it into $10 million. I'll get some competing bidders...."