Dog bites man – film at 11.

21 05 2010

From the Financial Times:

Markets take fright at political moves

By Brooke Masters and David Oakley in London and Aline van Duyn and Michael Mackenzie in New York

Published: May 20 2010 18:55 | Last updated: May 21 2010 08:49

Fears of a disorderly regulatory crackdown on banks and financial markets triggered a crisis of confidence among investors on Thursday that sent share prices reeling in a global flight to safety.

US, European and Asian shares all tumbled in the wake of Germany’s partial ban on naked short selling and ahead of a crucial vote on the US financial regulation bill. The S&P 500 fell 3.9 per cent, bringing its losses since late April to 12 per cent and pushing it into “correction” territory.

Most Asian stocks, which this week slumped to their lowest levels in nearly nine months, continued to suffer on Friday. In Tokyo, the Nikkei 225 index dropped 2.45 per cent to 9,784.54, while Sydney’s S&P/ASX 200 index declined 0.26 per cent to 4,305.40. The Shanghai Composite, the worst-performing market in the region this year, rebounded 1.08 per cent to 2,583.52. The Hong Kong market was closed for a public holiday.

“The lack of clarity from the politicians has shattered confidence,” said David Owen, chief European financial economist at Jefferies.

Really?  Who’da thunk it?  A bunch of dithering boobs in short pants, pandering to rent-seekers and politically-connected professional whiners has an effect on the markets they are trying to control?  I’m shocked!

When will these bozos learn the Rule of Unintended Consequences will bite them in the ass every time they try to control something? I think we need a precautionary principle for legislation – enforced with a clue-by-four.

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