After the stock market was trashed last Friday we had the aftershocks that saw banks and house builders losing up to 30% of their market capitalisation. Then, the dead cat bounced, the market recovered a little this week. So why did it crash so spectacularly on Friday and what can we learn from it? We have to understand the role of market makers in all this. We need to understand the Brexit aftershocks.
There are a lot of different types of investments. Labour this week announced a policy that would stop some ‘buy to let’ investments. I think borrowing money cheap to buy run down properties to rent out to desperate people is simply being a parasite. We need proper investment in housing, not get rich quick speculators. (more…)