Thursday, 18 April 2013
Another "Hope" fizzle
- Growth predictions falling
- Unemployment up
- Businesses still closing
- Banks still full of bad loans
- Public sector wages going up at 3% and Prviate Sector at 1%
- Misssing deficit reduction targets
- Commodity prices falling
- Baltic Dry index collpasing again
Every year since 2011 we have now seen the same pattern, people come back to their desks across the world after the New Year and think "this time, its different." Every year we ge to March/April and nothing has changed, the hope dies and the markets go on a big down turn. We all end up depressed again. markets wise the old "Sell in May" meme is going to do well this year again too.
Clearly in the UK spcifically the deleverage of private debts has not happened fast enough to allow any new growth. The control of the public sector debt from completely spiralling out of control, if not actually reducing at all, has meant a lethargic austerity.
We will see this pattern again next year too perhaps - maybe in 2015 things will improve.
It's not very fun though, is it?