On 7 August we published the first part of this article «The future of the European Union".«The misunderstood Mr. Market«In it, we tried to analyse what was happening to the market from an objective, fundamental and calm point of view. As you will recall, we said that the general price of companies at a global level was excessively pessimistic with respect to their fundamentals. Today, just 11 days later, markets are once again pricing in disproportionate fears about economic fundamentals, but exasperatingly justified fears about political inoperativeness.
It is true that some indicators such as the fall in new corporate debt issues in developed countries, or various indices such as the US manufacturing index, the German confidence index, falls in GDP, etc. presage a more recessionary immediate future than was to be expected and desired. Especially after having burned ships and ships in quantitative easing, twice in the US, and unconfessed and covert free bars by the ECB, much less sterilised than would be desirable. 
And it is no less true that this deterioration of the developed world's outlook justifies to some extent that certain shares fall. Especially those of companies affected by the consumption of the developed world and/or substantially indebted. In other words, big names, once indestructible giants, are now beginning to slip dangerously into the mire of credit and consumption squeeze.
However, there are also countless companies with completely different prospects, either because of their low dependence on consumption in the most depressed developed countries, and/or because of their lack of dependence on the debt markets, and thus unaffected by the worsening of this scenario.
So why the pessimism, volatility and sharp falls that are comparable to 2007/8? The answer probably lies in uncertainty. When fundamentals do not justify so much pessimism, we must look to the cause of the falls, and that is mainly the unease, uneasiness, uncertainty and ultimately panic generated by the manifest inability of politicians to get the economy and its fundamentals back on track. The umpteenth example was the countdown to the «debt ceiling» or increase in the US Treasury's debt limit. But it rained on the rain, as the Eurozone's endemic inoperativeness makes Mr. Market realise that we have been playing with fire for too many quarters or semesters now. Because, paradoxically, the market is emerging as the most lucid entity of our times.. While money is redistributed among the infinite engineering assets that circulate everywhere, and the agents of this circus move in all directions like an anthill in a state of emergency, politicians argue about the sex of angels. Inopportune, useless, stupid or even insane questions, such as the desirability of creating an ad hoc rating agency to rate demand; or the French-German parade to pretend that political leaders are in charge and on the road to economic recovery. Mr. Market angrily protests in despair at the expedient reaction of the rulers, and does so in the form of panic and crash, which seems to be the only thing politicians listen to and fear. And it is in this macabre and horrifying dialogue between leaders and the financial world that we mortals navigate.
Markets are crying out Financially literate statisticians, How can we trust the solutions of the skull and crossbones duo (#Merkozy) if one of them cannot be willing to bear the astronomical cost of keeping Europe's periphery afloat? It seems that the leaders of the developed world prefer to pretend that warm fuzzies will suffice, and flatter the garb of a naked, emaciated and grotesque king as ever. Surreal and at the same time dangerous.
That is where we should look for the real reason for the falls and volatilities we are seeing this August, in the uncertainty generated by the inoperativeness and economic ignorance of the leaders, and not so much in the fundamental objectives. The holiday period, the proven financial incompetence of the leaders, the panic and the exhaustion of time and resources to redress the situation, do the rest. We are still in the eye of the hurricane and Mr. Market is the only one to raise his voice clearly to denounce that the King, that is, all of us, is naked. Someone with decision-making and macroeconomic management skills should listen to him once and for all, while the rest of us mortals take advantage of this unique opportunity.