The USA has finally slipped from being one of the larger batteries to the size of one you might find in a radio. Seriously though we could all see this coming and it isn't good news for any of us.
The current crisis in the US does also highlight the folly of those who have been wringing their hands over the demise of the Euro and dancing up and down on the piece of land set aside for its burial, the dollar is the dollar and its the reaction to the internal problems over there that has spread through the world markets over the past couple of days. Two parties driving by political ideology and dogma rather than by what is best for the country have created this mess, the reactions after the plan had been approved said it all, Democrats weren't happy and Republicans weren't happy and yet watching the story unfold (on CNN and Bloomberg by the way) it appeared that they were arguing on behalf of the other party, it was like watching a Labour politician campaigning for lower state benefits and a Conservative arguing for higher taxes.
The financial world is in a panic, not because there is any less confidence in any of the multi-national companies that keep things ticking over but across the world from China via Europe to the USA markets are losing confidence in Governments. You only have to look at those economies that are strong to see the effect that a weak Government or perceived weak Government can have.
Talking with clients over the past month the one thing that stands out head and shoulders above all else is that it's as if we have gone back to the recession of the early 1990's when confidence was at a low and that low was driven by doubts over the Government's policies. The constant headlines about who thinks George Osborne's policies are good and who thinks they aren't so good aren't going to help anybody as millions are wiped off the value of pension funds, utilities and other stocks that will have an impact on our lives. You only had to see the reaction to the Lloyds TSB results to see how confused the "experts" are at the moment, the headlines were all about how the taxpayer had lost more money rather than pointing out that actually, one-off insurance payments aside, the taxpayer is actually doing rather well out of its investment.
9 comments:
A very interesting post, Paul. It would be good to see some opinion polls about public confidence in the government's handling of the present situation.
Is it a case of "When the going gets tough, the tough go on holiday"? Perhaps that's a little unfair but I'd like to know what the coalition response is to all of this.
Funnily enough Shy listening to the radio phone-ins on Friday night I would say the section of the public that phones in are pretty pissed off - one poor bloke was absolutely livid that nobody was at home who could answere any questions.
The polls show almost no change: Cameron most popular leader, Osborne more trusted tha Balls etc. Parties at same state as months ago (before hackgate and other crap) I really don't think the holiday issue is important at all and there are plenty of people to answer questions. If Cameron hadn't gone away they'd say "the situation is far worse but DC won't tell us". It's called politics. Prescott's comments just show me what a twat he still is.
Re the situation...hell in a handcart I tells yea!
As Paul mentions, various sources say Osborne is doing the right think and other that he should have done ABC instead, most think GO has done OK but that it won't make any difference: if EU and US 'go down' we are collateral damage either way. I thinkw e waaaay beyong the 1990s both in the actual situation and the public feeling. If there were an election tomorrow the voters (not meaning the diehards of either side) wouldn't have a clue what to do.
Holy f**k! Just read THIS and now I'm pissed off...how DARE he go on holiday and get some c**t to write this.
Mind you it could be a ploy by the Express to boost their EU Referendum petition!
;-)
Thanks Span - your last comment and the link made me laugh just thinking of your indignation!
My opinion of GO and the long term budget hasn't changed it makes sense in economic terms but as I have said before financial plans often ignore the human cost.
You'll like this - chimes with your comment about confirdence/credibility - from Raedwald
"Governments are reacting as though this were a replay of the 30s, a liquidity crisis. It isn't. It's a credibility crisis."
...and just read the comment under that Raewald post! hahaha...I should get out more.
It's interesting reading the link because one thing all the major Governments have in common at the moment is lack of experience in office. From the USA through the UK into France, the only politician in the west with any experience in office at the moment is Angela Merkel who is blowing in the wind between her party policies and what is good for Germany.
They have very hard jobs and rely on civil servants to keep them up to date but sometimes you do wonder what they are doing with the information. We are on the whole conservative by nature but we have to rely on central Government to a certain degree to help and at the moment it feels like we've been here before.
Not get out more, just great minds perhaps.
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