SHORT TERM GAMBLERS

One of the illusions that is prevalent in financial circles is that the wheelers and dealers are studious investors who weigh up all the prospects for the long term. "Michael Hudson, a former Wall Street economist at Chase Manhattan Bank who also helped establish the world's first sovereign debt fund recently said: "Take any stock in the United States. The average time in which you hold a stock is -it's gone up from 20 seconds to 22 seconds in the last year. "Most trades are computerised. Most trades are short-term. The average foreign currency investment lasts - it's up now to 30 seconds, up from 28 seconds last month. The financial sector is short term, yet they talk as if they're long term." (Daily Telegraph, 18 January) The reality is that capitalism is a mad struggle that makes crazy gamblers look clever by comparison. RD