All the world major stock markets are facing several cycles of violent swings.
The ability to sustain so many cycles of such violence, underlined it is not a bubble.
The biggest corporations, with largest profits are Financial Institutions, and Energy giants. They are producing around 9% of profit.
Financial institutions, Retail, Distribution are critical lubricants for market efficiency and energy is the lowest value elements among all factor of production. They are not real wealth generators.
The largest wealth generating industry is the automobile industries, and its return is only 1%. Worse, largest General Motor and fourth placed Ford are making huge losses. Combining with other wealth generators like, electronics, electrics, aircrafts, their profit is merely 1/3 and 2/5 of Financial Institutions and Energy giants, respectively.[1]
This is analogous to a patient with arteries (banks) bigger than muscles (wealth generators). Huge amount of energy (wealth) is sending through. Yet they find only some weak muscles that are unable to consume this energy to labor, to generate new food (wealth). The arteries will be clogged with excessive wealth (inefficiency), yet driven by zealous heart (hyper-active investors), and soon the patient will have blood vessel exploded, brain hemorrhaged, stroked, paralyzed and perished in a totally warped manner.
This is a world economy ready to explode like dynamite.
Analysis is provided here, solutions will be presented in series.
[1] http://money.cnn.com/magazines/fortune/global500/2007/full_list/index.html
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