another day another dive in the FTSE and other exchanges. The FTSE closed below 5200. One analyst predicted a fall to 3000. 3000 would take us back to 1994. 4000 is almost a conservative view now. the banks are busy with rights issues, but you can pick up shares on the market cheaper than the offer prices. if rights issues fail that isn’t going to help the credit squeeze. companies wanting to borrow tens or hundreds of millions for acquisitions or major projects are being offered rates a consumer would turn down for a loan on a car. this isn’t the way it is supposed to be.
unemployment is about to rocket. inflation is going up and there is no instrument with which to curb it. interest rates are being kept stable but with this kind of outlook they’re only going down, fraction by fraction. not that the banks will pass on any falls, there’s nothing in the pot.
