Archive for the ‘Performance’ Category

Week of volatility and instability in the markets. To attempt to break Ibex35 10 400 points, have joined business performance and economic criteria across the Atlantic. These numbers have not only served to dispel doubts about the stability of the U.S. economy but have also helped maintain levels of equity. That yes, the experts are clear: before any rebound, better undo positions.

10 400 points, yes or no. The Spanish market has struggled throughout the week to maintain that level and facing the last session above this level. But is it sustainable? Experts warn of existing low volume this month in the markets, resulting in a high volatility. A situation that binds to the fact that investors “will be setting factors ‘external’ variable income, such as macroeconomic data,” says Alberto Rolland, director Inverseguros analysis. The expert acknowledged that investors have put aside business results have been good, they have forgotten the energy and raw materials to focus on references that bring enough volatility.

Regarding the Ibex35, Roland acknowledges that the money has entered 10,000 points and 11,000 are psychological dimensions and levels that the market is taken as a reference. A resistor in which we will return to take profits to fall again. “And while the Spanish selective may be close to achieving that level, experts advise caution when speaking of the American market. Roland says that there is a debate about the sustainability of growth, “some economists are given a high probability of developing the dreaded double-W in the American economy and that is latent in investors.” Damian Quarrel, director of Banco Gallegos acknowledges that “the S & P500 is trying to break the resistance of 1,100 points, short-term endurance.”

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Wage cuts for civil servants a necessary measure in 2010. The lowering of salaries of officials is the “star as crisis” has approved the government: A 5% drop in average salary, which will be greater for higher paid staff and lowest for the base. True that officials are to blame for the crisis, but no money to pay all, there are only two ways: either lower wages or fire officials. Not because it is considered fair or better, but because there is simply no alternative … Well, there is, the Greeks have taught us: we can not do anything in 2010, just wait … and then we need a cut of 15% in 2013.

Is it just the drop in salary of staff?

Well, honestly, I think so, officials say they do not deserve the lower pay, and better, that’s true, but the wage decreases have also occurred in the private sector (directly, or dismissals to new contracts + low, or just firing), and neither were to blame hard worker, so … well, the officials also deserve a privilege with respect to the hard worker, right? Because the only alternative to the drop in salary of staff (cost cutting) was higher taxes (increased revenue). Increases which would have had to eat too hard worker and whose status has deteriorated significantly by the crisis!

That is not a question of punishing the officials for vague, much less, a professor who spends his time lecturing to 25 students certainly has much less room for “shirking” that many private sector hard workers. It’s just that we can not maintain the level of current deficit, that would be the worst by far, and therefore need more revenue or less spending, what is commonly called “belt-tightening.” It is in this context that the question “Is it just the lower salaries of officials?” can be stated as “Is it fair that the entire burden of the crisis falls on workers in the private sector?”. It is very easy to reply that it is not just the drop in salary of staff (I also think that it is not), but if we think that someone should need to tighten their belts, it does not seem fair that now are officials who do.

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