Tuesday, October 14, 2008

Bank Bailout looks OK so far.

Markets around the world look very positive over the frankly massive bank bailouts world wide.

However we have two issues.

The first is excessive debt in the west, particularly in the USA and UK, and excessive savings in places like China all leading to massive trade deficits funded by fiddling currency rates and the savers lending us the money to buy what they produce.

Expect tight times ahead.

The BBC has this.

3 comments:

mutleythedog said...

Didnt work though did it?

Benedict White said...

Mutley, it is too early to tell, besides which even if we have a bad recession, as long as the banking system does not go under that part of the plan can be said to have worked.

Rinkly Rimes said...

Here in Australia we're hoping China starts using its savings to build its own country, since our exports of raw materials have dwindled since the Crunch.We're all so intermingled!