Send out the clowns…

With each passing week the whole charade of economics and politics resembles more and more of a pantomime cum circus, complete with contradictory news reports that baffle the experienced economic forecaster (and is even starting to baffle the general public, whose goldfish-like memory could be fooled easily enough)

It’s white, it’s black, it’s white again.  It’s a recovery, it’s a recession, it’s a recovery again.  Tired of Deja Vu?  Maybe have a whiskey and just pretend reality doesn’t exist.  If you can’t afford whiskey (like many facing the financial shitstorm) – don’t worry – Bernake, Goldman and the Euro mob are busy turning reality into something far less easy to comprehend.

A good example of the kind of contradictions we are getting starts this morning, with the European stock markets plummeting like a stone.  ‘Weak Macro data promps sell off’ (courtesy of Sharecast 23rd April).  What’s this?!At the closing bells on Friday 20th April, none other than Sharecast reported ‘Strong Macro data lifts stocks’.  Well I never…

It’s easy to comprehend that this was the way things are going to turn out, with the setting of the permabulls battling away with the help of the Fed and ECB like some kind of villain in a dramatic thriller.  Will they win?  Even though most of us are aware of the true financial situation and wish that the bad guys would just tell the truth rather than lying and continuing to let the good times roll, the game seems to continue with all the drama of the climax of the thriller as you think the bad guy is just about to get away with it.

Over the weekend, the dutch government was on the verge of collapse and this seems to have continued into Monday with big trouble ahead for one of the EZ’s leading economic nations.  France has also caused considerable turbulence with the Election results – Le Pen’s far-right politics attracting a spread of both nationalist and liberal revolutionary (which history has shown us France does so well).  Both these situations have helped turn the Euro Stock situation into a volatile powder-keg once more.

The Euro remains a very sick man and despite the well wishes of leaders claiming ‘the worst is over’ (jeez) we have reports like this which claim the EZ needs a further 2 to 3 trillion Euros in order to stop the contagion from spreading in countries like Spain and Italy.

Meanwhile, those aforementioned permabulls would be wise to advance with caution as they loudly proclaim the dollar as the worlds most undervalued reserve currency (after the farce of the Euro is revealed).  Noteworthy veterans of the Stock market have previously commented on the fall of the Euro and how a global flash crash (where everything is connected) leaves stock holders with a very small window of opportunity to pull profit out before the whole system collapses in on itself.

Advertisements

About tthurts

Rattling the cage...
This entry was posted in Economics, Humour, Politics. Bookmark the permalink.