Friday 20 February 2009

Lucky post 888 or Disaster Capitalism?

This is post number 888; which if I were Chinese would be very lucky indeed. However, capitalists tend to deal in cold hard facts rather than wishful thinking.

Instead, the report today is that a very gloomy week has taken a decided turn for the worse; and I am not talking about the mist and fog covering the City of London today.

The DOW closed down at a new bear market low last night of under 7445. This effect of tLinkhis has dragged the FTSE down 2% this morning so that it sits at just under 4000.
7 weeks into the new year and we are already 12% down on the main market; by contrast Gold shoots ahead up by 25% (huge overshoot on the upside but still...).

The main reason for all of this a combination of government hyperactivity across the world coupled with total ineffectiveness of said activity. Brown, Obama all of them need to calm down and start announcing thought through policies rather than knee jerk reactions; the current medicine is not working. There are seeds of good ideas in bank recapitalisation, regulating CDS, cutting interest rates...let's hope they get done properly.


Old BE said...

just under 4000

Sounds like a good opportunity to enter the market on a long term basis.

Letters From A Tory said...

So basically you want Brown and Obama to stop being politicians?

Good luck!

CityUnslicker said...

BE - huge sell signal, I'd wai a while yet. real bears are saying 3000 and below for the bottom.

LFAT - Yup.

Old BE said...

Good info! I will put all my money on short positions.......!

BTW congrats on 888 posts. Always thoughtful and challenging and you have a good range of commenters too. Keep up the good work.

Anonymous said...

nice article.

Anonymous said...


I've noticed the economy going into the tailspin since you wrote post number 666.

What exactly is your plan for the end of times?

Anonymous said...

by contrast Gold shoots ahead up by 25% (huge overshoot on the upside but still...).

Oh, really!