If the stock market implodes, it will be worse than 2008 because we have no money. Osbrown has been running ever bigger debts on almost zero interest while presiding over a housing and stock market boom that has benefitted only the rich. The effect of this has been to screw down wages for the rest of us and make it profitable for companies not to invest but to borrow money on the cheap so as to buy back their own shares, ramping up their value so that executives can trouser £Millions in bonuses without investing in plant and technology..
If Cameron hadn’t run such a crap New Labour-like campaign and won a decent majority, he might (I say ‘might’ because he isn’t one for keeping promises) just have taken on Labour’s mess and cut spending. Instead, the present New Labour government has spent money like a drunken sailor including £13 Billion annual sum blown on Foreign Aid and those stupid and pointless wars in Backwardsistaniland. No serious attempt has been made at deficit reduction.
The Tories, like their predecessors are fiscally incompetent.
The heroin of QE has left the market addicted with little chance of coming off and not suffering a bad economic cold turkey.
It also allows the Eurozone to pretend all is well as they can borrow at such low ludicrous rates there is no impetuous to take the hard decisions.
How long the lunacy can go on for I have no idea, the euro has lasted far longer than I expected or it should have.
Could be the Yen, could be a war, or markets may just tank for no real reason, but I do expect there to be a bear market in equities at some point as the madness cannot last forever.
|Juno for your news|
|You cannot trust the mainstream media|