Monday, 29 July 2013

A boring summer


BQ's cottage during
our lovely summer
 For the first time since 2010, we are condemned to a dull summer, If you add the UK weather in then it is the first decent summer since 2007. The if your a sports fan and you add in the success of the various Tennis players, rugby teams and racing drivers then it must surely be one of the best summer's of the century thus far.

But why did I say it was a dull summer - well, look at the FTSE over this year, one dip a month ago of about 8% but then a full recovery - nothing to see here.
Well you may remember the dim and distant past and recall that the Eurozone was going to collapse and take us all with it. Everything was very grim. Then at the end of lat summer lots of noise was made about Euro Quantitative Easing and hey presto, all has been fine since.

Fine for now one feels though. I am personally delighted to be able to go on holiday next week and for a change not have to worry if the life savings are going to be there when I get back. That is all rather too much stress to deal with on a daily basis.

However, the story will return one day. Greece is not fixed, Italy and Portugal have to much debt, France is still sclerotic with a very poor socialist Government. Money, more more realistically, promises of loans are not the same a debt forgiveness and internal devaluations have still never been shown to work in a crisis.

So let's enjoy things whilst they last, because it is a nice summer, but the future is farm ore cloudy. On a political front for the UK this is very bad news for the Government too. For now they are crowing about the reasonable fist they have made of turning the Country round from long recession, the challenge is will the Euro crisis can remained kicked far enough down the road to see out at 2015 election? 2 years really is a long time in politics.

9 comments:

Agence communication said...
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BrianSJ said...

22 Sept is the big day. Nothing must interfere with Merkel's re-election. After that, who knows.

Blue Eyes said...

I like the idea of farm ore. Maybe this is how we kick the CAP habit?

Electro-Kevin said...

We don't have savings - and on our money (and with our carefulness) it really shouldn't be like this.

Ever present decline regardless of how much work is done, how little is bought and how much money is earned.

Steven_L said...

Even Scotland has been hot and sunny.

So with this new-found rosey outlook do you still believe QE will be reversed one day?

Shannon Baker said...
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CityUnslicker said...

Steven_L

Will QE be reversed. No.

1) it will be let to run its course with the govt paying out on the bonds over the full period of the issued securities

2) It will be monetised by a future Labour government as they seek funds to splurge on spending.

DtP said...

The Quatari football thing has got legs.

Hope you all have an ace summer.

Huge thanks to Nick, CU & BQ for a wonderfuly intriguing year following poker table strategy and for that I thank you, it's been an absolute treat.

Muchos gracias

DtP

Demetrius said...

The picture is actually one of the Black Swans I have word with now and again whenever another financial disaster seems to be impending. I have found they make a lot more sense than the media. Try it, its a question of getting the frequency right.