Hedge Fund Insider: Germany: You Should Know Better !

Hedge Fund Insider: Germany: You Should Know Better !: March has been an extremely interesting month as far as analyzing the psychology of world markets. I do not normally like to get politically...

Germany: You Should Know Better !

March has been an extremely interesting month as far as analyzing the psychology of world markets. I do not normally like to get politically or sensational in writing commentary but what has developed in Cyprus, I believe, needs to be analyzed and assessed. German politicians and central bankers need to study history. Their actions are all to similar to a time in history that eventually led to the rise of the Nazi party. There are so many lessons from the boom of 1920's and the great depression of 1929 to 1931 and the then sociological implications of  1931 to 1937 (when the markets crashed again) and the following change in sentiment in the world, especially in Germany. Germany's and Europe's attempt to tax savers in Cyprus is a direct analogy on the fiscal constraints the world put on Germany post World War I. Germany as a country should understand better than any other country that policies that cause unemployment and distress amongst the vast majority of the public while only benefitting the elite are socially a catalyst for the rise of extreme political opinion and parties. By ignoring or not caring about other European countries social implications of austerity they providing a foundation for the rise of a extreme revolution in Europe. Grillo's success in Italy should not be ignored. Any country where the unemployment rate is over 20% for people under 24 years of age is a social problem and one that must be addressed. This is exactly what was not done in the world after 1929 and eventually led to the rise of the Nazi party. This time it will not be in Germany, but extreme politics could give rise in any South European country where the average person is being hurt by austerity, where unemployment is rising, where the wealth gap between the top 1% of rich people and the rest of the population is rising. What this means for the markets is that volatility, uncertainty, and eventually capitulation will occur if the European politicians and central bankers continue on this course. Merkel and Draghi will be remembered in history as the individuals that built the foundations of a social disaster in Europe. The best strategy I believe in dealing with this environment is to be short-term in trading. The world's economies are in a unstable state, political actions today will have ramifications on countries social environments for the next two decades. The more detached politicians and bankers become from the public the unstable the world will be.