Why is the stock exchanges effected world wide due to disasters and blasts?
It is usually seen that as soon as some earthquake or any natural or man made disaster strikes, the stock exchanges gets affected. Is it due to multinational companies or people taking out money from market?
Stock Exchanges ... are a polite defining of Gambling, in the form of, Speculation ...
and Speculations ... rely on every "event" ... Natural or Induced ... to make an extra buck, via Stock Trading ...
For example ... if Barak Obama has common cold ... the Speculators would speculate ... that Flu "could" influence his ... so called "opinion" ... while chairing a meeting of the Defence Committee ... and his giving, an ill timed, "go ahead" despite all counselling to the contrary ... and that would push the Arms Sales upwards ... and lead to new Defence Contracts ...
That such a trend at the top... would lead to a rise in Arms Production ... Hence, the Arms manufacture's Profits ... thus, the quoted price of the available Shares ... at the Stock Market ... thus, the frenzied Buying.
We live in a global community. We cannot be isolationists. Thus we purchase and sell goods and services to other countries and they sell and buy from us. Therefore, events in one country that endangers a needed product, blocks, a major supply route, eliminates a potential market, has a ripple effect throughout the global economy, which is aggravated by the over-reaction of some speculators.
Speculators are not a new trend in the economy. Ever since this country was first starting, people speculated in land, gold, silver, oil, and many other things. Speculation is not new, it is just has a higher profile than it use to have.
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