Unease of the Markets

Submitted by James MacBryde on January 4, 2016

At 19:19 (GMT) today the BBC Global 30 share index was 117.42 points down, or 1.57%. Does this mean that, all things being equal, the working class, globally, was 1.57% better off?

Noah Fence

8 years 10 months ago

In reply to by libcom.org

Submitted by Noah Fence on January 4, 2016

Lol! It means those trading short are better off!

James MacBryde

8 years 10 months ago

In reply to by libcom.org

Submitted by James MacBryde on January 5, 2016

Webby:

Lol! It means those trading short are better off!

Good answer but incorrect. Those physically trading in commodities are generally not the beneficiaries of a rising market or of 'trading short' but are overwhelmingly wage labourers. Besides which, your answer evades the question.

Steven.

8 years 10 months ago

In reply to by libcom.org

Submitted by Steven. on January 5, 2016

James MacBryde

At 19:19 (GMT) today the BBC Global 30 share index was 117.42 points down, or 1.57%. Does this mean that, all things being equal, the working class, globally, was 1.57% better off?

No, of course not.

Do you have a point you are trying to make?

Chilli Sauce

8 years 10 months ago

In reply to by libcom.org

Submitted by Chilli Sauce on January 6, 2016

I was just recently thinking about how stock market crash in 1929 ushered in a wave of working class prosperity....

James MacBryde

8 years 10 months ago

In reply to by libcom.org

Submitted by James MacBryde on January 6, 2016

From the BBC today:

The Shanghai Composite index closed 2.3% higher at 3,361.84 points as measures from regulators to support the stock market started to have an impact...

And:

Monday's 7% plunge in the Shanghai market, which led to the suspension of trading for the first time, triggered a global equities rout.

[my emphasis]

Steven.

8 years 10 months ago

In reply to by libcom.org

Submitted by Steven. on January 6, 2016

What's your point?

James MacBryde

8 years 10 months ago

In reply to by libcom.org

Submitted by James MacBryde on January 7, 2016

Steven repeats:

What's your point?

As you insist, to put it in vulgar terms, if the rich get poorer, than the poor get richer. In less vulgar terms, I think fluctuations in the value of capital reflect capital's own expectations/appraisal for the state of the economy. Thanks for your answer to the question.

BBC headline today:

China trading halt sparks 3% fall for Europe shares

According to the BBC, this is only the second time in its history that the Shanghai market has suspended trading, the first time being on Monday of this week.

James MacBryde

8 years 10 months ago

In reply to by libcom.org

Submitted by James MacBryde on January 12, 2016

Sell everything except high quality bonds. This is about return of capital not return on capital. In a crowded hall, exit doors are small.

RBS note to client

EastTexasRed

8 years 10 months ago

In reply to by libcom.org

Submitted by EastTexasRed on January 12, 2016

James MacBryde, if I understand you correctly (though you haven't given much to go on), you believe that capitalism is a zero-sum game and that if the capitalist class loses a certain percentage of its wealth then, of necessity, the workers must gain the same proportion. None of the quotes you'e given reinforce that in any way. I'm not sure that a fall in the value of the markets necessarily means that the wealth of the capitalist class as a whole falls - on what basis do you make that assumption? I reckon even Marx would say it's way more complicated than that, and that last RBS quote seems to be saying something similar. Steven has asked you several times what point you're making, and each time you quote something about the stock markets without explaining yourself. So, what point ARE you making? (Maybe it's a waste of time but I'm enjoying this thread for some stoopid reason).

James MacBryde

8 years 10 months ago

In reply to by libcom.org

Submitted by James MacBryde on January 15, 2016

Red, I am glad you're enjoying this thread. My first job was as a clerk in a stockbrokers' office. I saw the 'good times' of the eighties and witnessed all the self-congratultions of the interested parties. As our class was defeated, the stock market rose and my complexion grew more sallow from lack of exposure to sunlight. and exposure to Tennant Extra and cigarettes. Then in 1989 the tide turned, the work dried up and I quit. Then the world witnessed an unprecedented bear market for 10 years. Then 2008, 'global financial crisis' and simultaneously an upsurge in our class struggle. As a means of stalling the panic, Quantitative Easing (primitive accumulation). It is merely professional interest. Don't think I think market fluctuations have any consequences in the real world but I think they may be an indicator of capitalist confidence in itself.

Chilli Sauce

8 years 10 months ago

In reply to by libcom.org

Submitted by Chilli Sauce on January 15, 2016

Fair enough on that last sentence, but

Quantitative Easing (primitive accumulation)

these are not the same.

James MacBryde

8 years 10 months ago

In reply to by libcom.org

Submitted by James MacBryde on January 16, 2016

Isn't quantitive easing just the bourgeoisie stealing a tranche of cash from the taxpayer, like the way the land lords stole a whole heap of Scottish land in the Highland clearances?

Back to the thread. A good day on the markets, fellahs

BBC Global 30, down 1.35%

Auld-bod

8 years 10 months ago

In reply to by libcom.org

Submitted by Auld-bod on January 15, 2016

I’m no economist or historian so just a couple of comments.
The radio stated that the suspension of trading in the Shanghai market was due to the low 7% threshold; in USA it is 20% before a suspension is triggered. The mechanism is a new feature in China and it was suggested the level was set too low.

The idea that the ‘Lords of England stole a whole heap of Scottish land’ is a myth. The Scottish ruling class embraced capitalism with relish and many would sell their grannies if the price was right.
For what it is worth the ‘union of the crowns’ was when the English took a Scot onto the throne. An examination of the British ruling class will reveal a disproportionate number of Scots in positions of power. The Scots working class often doped with religion and nationalism were treated like dirt and celebrated as cannon fodder.

Sleeper

8 years 10 months ago

In reply to by libcom.org

Submitted by Sleeper on January 15, 2016

Surely it's just proof that capitalism doesn't and never has worked.

James MacBryde

Isn't quantitive easing just the bourgeoisie stealing a tranche of cash from the taxpayer, like the way the Lords of England stole a whole heap of Scottish land?

Back to the thread. A good day on the markets, fellahs

BBC Global 30, down 1.35%

James MacBryde

8 years 10 months ago

In reply to by libcom.org

Submitted by James MacBryde on January 16, 2016

Thinking back, the office in Sun Street where I held my first full-time job would have been good meat for a sociologist. It encapsulated the social tiers of British society. Down in the deep basement lurked the true English working class, the labouring class. In a tiny room barely big enough to hold its contents worked two typists. They were not Personal Secretaries but spade workers deprived of any natural light and very little oxygen (the air conditioning had its source of air on the roof and thus had to travel down through the seven floors getting thinner as it went). On the upper basement was the post-room with Minky and his franking machine and his boss Frank. Ground floor reception. Up one more floor was the heart of the operation where all the nitty gritty was carried out under the tender care of Mr Driver. Up to the second, this was where clerks were now called 'Administrative Assistants'. The third floor was the middle, middle class. Stockbrokers but only with a smattering of private clients. The fourth floor had a leisured feel about it and was home to about five gentlemen (and one Lord) and their Private Secretaries. Finally, if you made it to the top floor you'd reached my personal heaven: fine wines and gourmet food: the Directors lunchroom. And of the class struggle in these walls? There was little mention. Perhaps Minkies niggling little jibbes at Mr Haggar, "Yuppie bastard", which definitely hit their mark; or the raging argument on the topic of Poll Tax after the Battle of Trafalgar.

James MacBryde

8 years 10 months ago

In reply to by libcom.org

Submitted by James MacBryde on January 16, 2016

Auld-bold, the mechanism for shutting down the Shanghai stockmarket has now been removed completely after the [non-]events detailed in the original post.

In accordance with your criticism I have altered my comment to read:

...the land lords stole a whole heap of Scottish land in the Highland clearances

James MacBryde

8 years 9 months ago

In reply to by libcom.org

Submitted by James MacBryde on February 8, 2016

Another good day on the markets:
http://www.thisismoney.co.uk/money/markets/article-3437391/London-shares-drop-2-7-global-stock-markets-pounding-investors-seek-solace-safe-havens.html

Spikymike

8 years 9 months ago

In reply to by libcom.org

Submitted by Spikymike on February 12, 2016

A recent useful commentary following on from current stock market falls:
www.leftcom.org/en/articles/2016-02-04/the-vanishing-recovery-of-global-capitalism

petey

8 years 9 months ago

In reply to by libcom.org

Submitted by petey on February 12, 2016

Spikymike

A recent useful commentary following on from current stock market falls:
www.leftcom.org/en/articles/2016-02-04/the-vanishing-recovery-of-global-capitalism

good image too

whirlwind

8 years 8 months ago

In reply to by libcom.org

Submitted by whirlwind on March 11, 2016

Are the current dramatic fluctuations in the value of stock markets unprecedented? I know that automated trading has an effect but nonetheless I cannot remember a period when there has been such dramatic ups and downs.