Tim Worstall is a well-known contributor to Forbes magazine. In a recent article written by him, he expresses his discontent towards nationalism being dragged into arguments and discussions related to the financial markets and states that this is a common occurrence in British and European financial market deliberations and discussions. He finds this, in fact, utterly ridiculous and unwarranted.
Why should nationalism not intervene in matters related to the financial market?
The reason Worstall finds bringing the matter of nationalism into financial market discussions downright nonsensical is because he feels that it doesn't matter who owns what. As long as the company or service is rendering something useful to consumers and the society, it hardly matters who is the owner of that company rendering financial products and/or services. He says that financial market participants need to be more broad-minded.
For example, Google – the multi-billion dollar company, caters to people all over the world from Ireland to Australia, even though its head office is located in California, USA. What really matters is that Google is accessible to millions of people residing in every nook and corner of the world from the comfort of their own homes and offices thanks to the dawn of the computer and internet era. And this is what contributes to the financial economy and not the geographical location of the service provider or receiver nor the geographical location of the owner of Google.
This same principle, he says, applies to financial markets as well. People should be grateful that they have a well functioning financial market to trade in stocks and shares in whichever country they live. They shouldn’t be affected by who is the owner of that particular financial market or any other irrelevant subject. The ability to raise capital and buy and sell stocks and shares in a financial market is what is of prime importance and not any other trivial and meaningless factors.
Deutsche Boerse Bid For London Stock Exchange
All this is in relation to the current war bid between the Germans and the British over the acquisition of the London Stock Exchange by Deutsche Boerse. Recently, the board of London stock exchange has agreed to sell its company to its arch rival in Frankfurt, Germany for 21 billion pounds whose shareholder will hold and control 54.4% of the company’s stock. What's really funny according to Worstall is that the Germans aren’t too pleased about this merger either.
In conclusion, people mustn't waste time fretting over whose hands the London Stock Exchange is going to fall into. They should instead appreciate the fact that the stock exchange exists and is running smoothly for potential and prospective investors to invest their money in and trade peacefully and for companies to raise much-needed capital without getting involved in races and wars over who owns what. This is just one of those times when nationalism should be curbed for the better.