VW in the stock market casino

After the takeover by Porsche the German car manufacturer VW (Volkswagen) is currently the most expensive company in the world. The left-wing Tageszeitung comments on the skewed relationship between the ailing car industry and VW's share price: "These extremely contradictory pieces of news show the extent to which the stock exchange has become decoupled from the real economy. While it has been clear since before the Internet bubble that the value of shares on the stock exchange often has little to do with the actual value of the company in question, the relationship has never been as wildly disproportionate as it currently is with VW. ... Calls for restrictions to be placed on hedge funds, for a ban on speculative short selling and for more transparency in the financial markets thus take on an entirely new significance. Without such changes the stock exchange will not only remain a casino but one in which the same rules do not apply to all players."

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