Monday, June 29, 2015

The Greek Tragedy and the Nikkei ...

The Greek Tragedy unfolding is desperation gone berserk. Keeping the banks closed for a few days to deny the truth. Reminds me of the old days when the Nikkei used to start tanking after it touched a peak of near 40,000 (It is now at near 20,000!, after never having been near thirty or forty).
In those days, the Nikkei 30 Index computation was supposed to be hilarious. At the start of the day, the exchange officials would write down prices of the 30 stocks. The first trade in the stocks had to be at or above that price. And as prices were falling like nine-pins, the exchange authorities resorted to desperate measures.
Each day, they would write an artificially high price. As no trades would happen at that level, the stock/s would remain untraded through the day. The same price would be treated as the closing price for the day and index computed on that number. So, a false sense of the market was created. Finally....
So Greece is now trying that during the shut days of the bank, all will be forgiven and the world will come to a solution on terms suitable to Greece. And banks will reopen as if nothing had happened. Well, even Rip Van Winkle would have winked.

1 comment:

Karthikraja K said...

LOL. It is like Covering full pumpkin in boiled rice.