I am not totally naive about how the world's markets work, but there is something that just doesn't sit right with me.
What has happened in Japan will cost Billions to fix, billions will have been lost already. But now we have speculators eager to see when the markets will open and how they can make a quick buck.
Yes I can see how if Joe Bloggs construction from Glasgow is given a £100m contract to rebuild a town in Japan, then that is extra money for Joe Bloggs. But that money needs to come out of Japan's economy.
So Japan needs to raise more money to pay for repairs and rebuild - so where does that come from? If it borrows, then it costs. If it tries to raise the revenue through taxes, it will hit company profits and individuals.
So how can investors make money out of this?
|