As a business and economics student, looking at the newspaper business sections during the past few weeks has pretty much been a revision of my macroeconomics class - under the subtitle "How everything can go from bad to worse and nobody can do anything about it". It never ceases to amaze me how there is an entire field of research devoted to the study of economics and economic cycles and there are people studying economics - yet it seems like nobody has really understood anything at all. Entire countries file bankruptcy, people lose their jobs, lose a lot of money, lose confidence in their governments. Sometimes I wonder whether there actually is any logic to how the global economy works - in times like these it certainly does not seem like it. What I would want to observe in the next few days is how the media influences the whole situation - after all, a big part of market ups and downs are caused by nothing but public mood changes, which of course are often intensified or even created my the media.
Tomorrow is going to be an interesting day - all eyes on the US markets when stock exchange opens up on Monday. I'm morbidly intrigued to see what is going to happen after Standard and Poor's downgrade of the US last Friday.
Another thing that I'm going to be having a close look at is the currency market. The Swiss Frank is deemed a "crisis-proof" currency and therefore ridiculously overvalued at the moment. My friends and family are all traveling to either the Euro countries or the US to bargain from the situation but on the other hand, Swiss exports and the whole economy are going to be in serious trouble if the National Bank can't figure out a way of devaluating the Frank.
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