It isn't that they can't see the solution; it's that they can't see the problem....
The Main reasons For Current Collapse of Global financial markets are the policy adopted by big FII, 'Buy Commodities and Sell Financial' without understanding the following concepts and logics.
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Sr no.
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Commodities
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Financials
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1
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Cost of carry for cash market is High
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Cost of carry for cash market is negligible
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2
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Size of Cash contract is much more higher than the future
contract
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Size of Cash contract is much more laser than the future
contract
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3
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No return on commodities like dividends etc.
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Return on Financials like dividends etc.
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4
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Increase in Commodities price reduces the drawing power
of Economy.
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Increase in Stock price increases the drawing power
of Economy
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5
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Supply and Demand are uncertain, because the availability
of commodities are not fixed.
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Supply and Demand are certain, because the size of Equities
are Fixed.
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