The Role of Stock Market Speculation: DEVELOPMENT -part 6-
The Need for Control of Financial Capital.
The instability of financial markets is transmitted to the “real economy” (that which saw us and feeds us) through the changes and volatility in stock prices, this instability is one of the most important causes of rising real interests that hold back domestic consumption and business investment, also deepen and encourage the public deficit, the pension funds that manage hundreds of billions of dollars, to demand higher dividends to their businesses.
The first victims of the hunt in pursuit of profit are the employees themselves, whose mass layoffs push up stock prices to their former employers.
Based on experience in previous crises, it is possible to affirm that “financial markets are inherently unstable. Imposing market discipline means imposing instability, and How much instability can society take?. Market discipline should be supplemented by another discipline: to maintain stability in financial markets should be an explicit objective of public policy. ”
In the absence of public policy today are civil organizations that are taking up this challenge. In response to the instability and insecurity that involves the process of neoliberal globalization, ATTAC with Citizen Action movements in various countries have raised the Tobin tax as an effective measure to stop the advance of “market fundamentalism” that threatens to destroy , the very sources of life and wealth of society, man and nature. ”
credit to: Lic. Eyelin Bello Caballero, MSc. Yaicel Rangel Díaz and MSc.Eimyn Rizo Lorenzo
Source: www.gestiopolis.com/finanzas-contaduria/especulaciones-en-los-mercados-financieros.htm
image source: www.techinnoventure.com/wp-content/uploads/2008/12/moneytree300.jpg