Global Markets Voice Massive Discontent with Conservative Victory

Global markets woke this morning to news of yet another conservative government in Canada.  Having taken note of the incredible damaged caused to capitalism by neoliberal governments, markets across the globe began a broad based sell-off. The DOW was down nearly 8%, the S&P 500 9%, and the FTSE 100 7 %.  Apparently traders viewed the Canadian election as kind of futures market for the likely outcomes of elections in the US and the UK.

Meanwhile in Toronto the TSX was down over 600 points on the news of a Conservative victory.

When Flaherty was asked what he thought of the markets reaction to his governments victory he is fantasized to have said:  “everyone knows the guys that run those markets are bunch of F***ing raving communists.”  When asked if that meant there would be no fiscal stimulus for the broader economy he is fantasized to have said: “look we already spent our wad on the Banks so the real economy can go F**k itself.”  “ungrateful bastards”

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2 thoughts on “Global Markets Voice Massive Discontent with Conservative Victory

  1. Ha!

    I get such a kick out of the various media outlets that report “TSX down 242 points on fears of recession” or whatever. There always has to be one reason the market is up or down, it can’t just be a random walk.

  2. Dillon,

    I hope you know this was satire. A random walk would mean prices are not predictable it does not mean information does not effect the market. The theory of efficient markets says that prices reflect all the available information at the time of transacting and thus the path of prices should be a random walk i.e., unpredictable. So in effect the EMH suggests prices movements are nothing but creatures of information–for good or evil.

    My satire relies on the spurious correlation between two events. What makes it funny is if Layton had won there would be no end of serious speculation that the drop on the TSX was influenced by a NDP win.

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