Thursday, 6 November 2008
We have published a few cautionary posts on this blog over the years, but today's interest-rate cut speaks as eloquently as anything. We are in Big Trouble.
Industrial companies that had not really seen too much to worry them by mid year are now seeing an absolute bloodbath ahead. Watch for long shut-downs over the Christmas break, that extend to weeks and then longer.
A collapse in confidence may start as a matter of 'sentiment', but it rapidly becomes as tangible as can be. This has clearly been communicated to the Committee, and 150 bps is what we see as a result.
For how much longer can Gordon Brown keep whistling his ridiculous 'we are best-placed' tune in the gathering dark ?
Posted by Nick Drew