Driving down to the office this morning, a realization dawned on me that the traffic system in the capital needs re-engineering and proper management to the core. Yes, I know the detection of the problem is a little too late on my part but nevertheless the problem needs quick remedies if a working person has to be in time for work or an appointment. Rash driving and unnecessary overtaking are the obstacles in this endeavor. But the major factor behind the grievance is the growing number of vehicles plying on the road as opposed to the limited road space available. The concerned authorities need to chalk out proper solutions in order to address this brewing problem or else the capital will come to a standstill in the coming days. So if the factors mentioned above are the drivers behind the crazy traffic system of the capital, what is driving the global financial markets to extremes?

The stock markets staged a massive rally on Monday after investors became convinced that the European debt crisis just might be fixed. If you are not convinced by this proposition, don’t worry, since you are not alone on the boat. Just a speck of good news out of the EU that a lasting solution just might be on the cards sent traders pushing the buy button and the indices soaring higher. Such is the life of this crazy, mixed up market that is dominated not by the earnings or the economy but rather by which political plan is at work that either will alleviate or aggravate the sovereign debt crisis. Investors crowded the markets on Monday with belief that the IMF was ready to step in with an aid package of up to 600 billion euros to prop up the ailing Italian debt.

But the question arises-Who are really driving those trades?  The answer is not the long-term investors, who have been withdrawing the money out of the markets for months but the short-term traders that were willing to react on emotion and momentum. For those traders, it’s been all about the European crisis which in turn has driven volatility to the extreme. With the euro zone being so unpredictable, the wild price swings are unlikely to fade quickly. Recent improvements in the US should help calm risk sentiments but policy news can quickly overwhelm sentiment and spark turbulent moves across the markets. Intervention, or the chance of it, has been the primary driver in which way the market goes.

As in the case of the capitals traffic management system, the global financial markets too needs a little calm and direction rather than the crazy unpredictable path that it is undertaking. We need a vision of a better tomorrow and not a blurred picture of shattered dreams and paths.