It is about time. Finally, someone is going after the malicious and fraudulent practice of scaring people with false analyses of personal computers. For me, this practice has been an irritant, but for many, it has cost them money, as they bought expensive and inferior antivirus software because they were afraid. The practice exemplifies the anti-ethical strategy of utilizing fear to achieve monetary gain …
A copy of the complaint provided to Reuters … alleges that Symantec distributes trial versions of its products that scan a consumer’s system, then invariably report that harmful errors, privacy risks and other problems exists on the PC, regardless of the real condition of the machine.
Now, speaking of fear …
The euro hit session lows of $1.2695 after Fitch said the ECB needed to ramp up its buying of troubled euro zone debt to support Italy and prevent a “cataclysmic” collapse of the euro.
We can expect more of this from them (ratings agencies). Count on periodic announcements that inspire fear, and then count on the market to react negatively. This is part of the game. Markets move on the words of Fitch (and others), and lots of money is made on the market movement.
Now, having finished my “attack” on the ratings agencies and the corruption surrounding them, I have to applaud this latest announcement, as it is spot on and it needs to be said more publicly and with greater vigor. The ECB does need to be more aggressive about buying up Eurozone debt. It does if saving the Eurozone and the euro is a priority, which, I assume, it is. True, the ECB is quietly using its tools to increase liquidity in the Eurozone financial system, and true, it is buying Eurozone sovereign debt, but at a minimal level. Its stated public policy is that ECB’s mandate is to control inflation, not to bail out financially troubled countries.
Fine and dandy, as this public attitude appeases the powerful politics that push this notion, and in fact it is technically true, but the fact remains that the ECB has, does, and will continue to buy Eurozone sovereign debt. What it won’t do is simply stand up and say it will do it at the levels necessary to contain the fiscal crisis. That action would go a long way to alleviating much of the uncertainty surrounding the fiscal mess in Europe. As well, it would allow a long breather from the crisis, precious time to get the debts under control. It would also restore confidence in an economic system sorely lacking in confidence.
Restoring confidence in the Eurozone and the euro is, arguably, the most important thing the ECB can do for the ailing countries. All are in recession, and the major reason recessions occur is because consumers become afraid, consumers stop spending. Get the consumer back in the game and business confidence is restored, business picks up, manufacturing increases, people get jobs, and then more people spend more money. It is a cycle born of perception, and this is reality – one sure way out of debt for the ailing countries is to get them out of recession.
As to the financing of the debts … If the ECB steps up and restores confidence in the entire system, private investors will feel more certain about investing in sovereign debt. Bond yields will go down as more buyers step up, and as bond yields go lower, the countries have more money to spend on rebuilding their economies. And so it goes …
Trade in the day – Invest in your life …
