OK I'm in two minds whether this "recession" is starting to recover or whether it is going to get worse.
My firm opinion is that massive Keynesian stimulus to promote recover sets us up for the next Apocalypse. The healthiest thing for the future health is for gu'mints to butt the f~~~ out and let the market do its job.
The free market has not failed, the market is trying to do what it's supposed to do. Gu'mint interference always has unintended consequences.
If stimulus works, it will be temporary and perpetuate a possibly even bigger crisis later, with severely damaged capacity for markets to recover (because of debt and high taxation).
An article in today's Citywire discusses:
This ties in with my street level observations. The punters are wiping out their cards and spending on Chinese tat again.Daily View: Consumer revival imminent - but beware the consequences
By David Campbell | 09:04:49 | 22 July 2009
The seeds of the next financial crisis may already be growing, as banks around the globe report record profits, JP Morgan Euro Fledgling manager Francesco Conte has warned.
The massive liquidity surge – principally reported by the investment banks as they exploit dislocated fixed income and currency spreads, but also lifting retail banks – was unlikely to stay stuck on balance sheets for more than six months, he said.
At its most positive, the money was likely to filter consumers in the form of renewed lending and he predicted that household spending was likely to surprise on the upside.
Equally, once some form of retail banking competition returned and placed pressure on rates, the amount of money on balance sheets could easily create the next bubble.
Conte, manager of the European mid and small-cap trust alongside Jim Campbell, said: ‘Governments have almost been schizophrenic about this: they have been telling banks that there can never be a return to so much credit, and then telling them to lend.
‘All logic suggests that the consumer is dead and buried but once balance sheets have been repaired, and banks start competing again, greed will start to creep in,’ he said......................