What’s happening in Europe? Are we experimenting the same pain of the USA financial markets? I don’t think so. The European and the American credit systems are different. There is no reason why European Stock Exchange yesterday suffered their biggest one-day fall in the last 20 years. Unless…

Well, let us suppose that you are a European bank. Your situation is not so bad, even if the worldwide crisis is worrying. You manage funds, you can move significant amounts of money on stock exchange, so you unload shares. The result? Stock exchanges slump, of course. In my opinion, the fall we experienced in Europe yesterday has not to be ascribed to the small savers, frightened by the USA crisis: they cannot move so much money. But banks can, they do.

Why? Because some European government might be pushed to propose a bailout plan similar to the one proposed by President Bush in USA. Even if our banks are not really in trouble, it would be such an attractive opportunity for them. So, was it really the yesterday European Stock Exchange slump the signal of a financial crisis in the Old Continent, or rather a planned action to obtain funds from European Union? I cannot say for sure, but I have my doubts.

Dario de Judicibus - Managed slump - L'Indipendente.