Why markets love strongmen: Now more than ever, amoral markets are rallying behind autocrats who pro

[Judi Lynn]

Why markets love strongmen: Now more than ever, amoral markets are rallying behind autocrats who promote growth
September 30, 2019, 2:00 AM IST Ruchir Sharma

Wall Street has long existed as a parallel universe where leaders cast by critics in the media as autocratic villains can be feted as heroes, if their actions bode well for the economy. Lately, this split has reached new extremes.

In the critics’ view, we live in an increasingly illiberal age, populated by dangerously erratic strongmen. Leading examples include President Jair Bolsonaro of Brazil, widely accused of turning a blind eye as the Amazon burns; President Abdel Fattah el-Sisi of Egypt, whose tough military-backed regime has been the target of protests over the past week; and Crown Prince Mohammed bin Salman of Saudi Arabia, often linked to the assassination of journalist Jamal Kashoggi by Saudi operatives.

Yet global investors view the same trio as promising economic reformers, following a mainstream playbook that could have been written (indeed sometimes is written) by analysts at the International Monetary Fund. Markets reward them accordingly. Brazil under Bolsonaro and Saudi Arabia under Crown Prince bin Salman have both ranked among the world’s hottest stock markets. Until the latest Cairo protest, this year’s top performing market was Egypt.

The harsh reality is that markets are amoral, instinctively neutral barometers of economic performance, and they will at times ignore the excesses of strongmen for a simple reason. Facing little or no resistance from legislatures, courts or independent watchdogs, strongmen can push through sweeping reforms – particularly in emerging economies, where rule of law is relatively weak.

More:
https://timesofindia.indiatimes.com/blogs/toi-edit-page/why-markets-love-strongmen-now-more-than-ever-amoral-markets-are-rallying-behind-autocrats-who-promote-growth/

(New York Times article)

[Newest Reality]

1. Who would have even thought of...

How could anyone even imagine that markets would be moral? Money is the god in this case and profit is the sacrament. Morals is another matter all together.

The same applies to most corporations. They exist, as we all know, primarily to provide profits to shareholders. That's the First Commandment of incorporation. However, public relations would sure like you to equate morals/ethics with a name brand!

I appreciate the article pointing that out though, because it dispels any beliefs or delusions about morality being a factor. Even ethics are questionable in this regard if you want to go that route.

[pbmus]

2. It's why Wall Street has already threatened to back the Con if

Warren is our candidate...