As I write this it appears that Stage two of the Global crisis is already under way, and indeed appears to be gathering pace. The FTSE has been sent tumbling by more than 550 points, it's third worst fall in history. The Dow Jones' slump has been partially arrested by some surprising 'good news' on the jobs front, but it seems highly likely this is a 'dead man's bounce', Hal Berstram is already advising people to stockpile tinned food, and this seems pretty good advice. The trigger for the crisis appears to have been, once again issues with the Eurozone (the subject of several earlier and one stillborn post - the phrase 'Greek tragedy' is just too good to resist)
It appears the contagion evident in Portugal, Ireland, Greece (and also little Cyprus) has now spread to Italy and Spain. The ECB seems unwilling (or perhaps unable to intervene) and it is revealed that the EFSF (European Financial Stability Fund) is expected to be increased to £440 billion to anticipate issues in those much larger economies. In the meantime, hang on to your hats, as the chickens are definitely coming home to roost. More on this later - but in the meantime, invest in John West and Princes, if you want to put your money anywhere!
1 comment:
Yep - markets still falling as we speak. Could be a fifth straight day of triple-digit falls on the FTSE100 - a record. Investors seemed to have sussed out that our political leaders are out of ammunition, out of ideas, and are just marking time now waiting for the system to collapse.
Post a Comment