http://blog.currenciesdirect.net/index.php/2009/04/20/we-are-now-in-an-economists-dream-scenario/ Foreign exchange and currency rates blog Sat, 11 Feb 2012 17:21:12 +0000 http://wordpress.org/?v=2.7.1 hourly 1 http://blog.currenciesdirect.net/index.php/2009/04/20/we-are-now-in-an-economists-dream-scenario/comment-page-1/#comment-34 nash Tue, 21 Apr 2009 00:11:41 +0000 http://blog.currenciesdirect.net/?p=308#comment-34 WE ARE IN A FAKE RECOVERY. Check out coments made by Edward Harrison in http://www.nakedcapitalism.com "This is a fake recovery because the underlying systemic issues in the financial sector are being papered over through various mechanisms designed to surreptitiously recapitalize banks while monetary and fiscal stimulus induces a rebound before many banks' inherent insolvency becomes a problem. This means the banking system will remain weak even after recovery takes hold. The likely result of the weak system will be a relapse into a depression-like circumstances once the temporary salve of stimulus has worn off. Note that this does not preclude stocks from large rallies or a new bull market from forming because as unsustainable as the recovery may be, it will be a recovery nonetheless" WE ARE IN A FAKE RECOVERY. Check out coments made by Edward Harrison in http://www.nakedcapitalism.com
“This is a fake recovery because the underlying systemic issues in the financial sector are being papered over through various mechanisms designed to surreptitiously recapitalize banks while monetary and fiscal stimulus induces a rebound before many banks’ inherent insolvency becomes a problem. This means the banking system will remain weak even after recovery takes hold. The likely result of the weak system will be a relapse into a depression-like circumstances once the temporary salve of stimulus has worn off. Note that this does not preclude stocks from large rallies or a new bull market from forming because as unsustainable as the recovery may be, it will be a recovery nonetheless”

]]> http://blog.currenciesdirect.net/index.php/2009/04/20/we-are-now-in-an-economists-dream-scenario/comment-page-1/#comment-33 Keith Spitalnick Mon, 20 Apr 2009 20:48:14 +0000 http://blog.currenciesdirect.net/?p=308#comment-33 In the budget presentation, Darling has one of the toughest jobs to do of any Chancellor in the last few years. As I see it he has two choices, either to come clean about just how bad the economic situation is and make some drastic moves to remedy it or, and more likely, skirt around the issue by using New Labour buzz-lines, public sector initiatives, and investment in new "green" sectors like cutting carbon emissions and rennewable energy The latter choice will be the easy but wrong one to make and is in stark contrast to the Shadow Chancellor, George Osborne who is setting out his stall very early by suggesting he wont be afraid to make some tough decisions. In the budget presentation, Darling has one of the toughest jobs to do of any Chancellor in the last few years. As I see it he has two choices, either to come clean about just how bad the economic situation is and make some drastic moves to remedy it or, and more likely, skirt around the issue by using New Labour buzz-lines, public sector initiatives, and investment in new “green” sectors like cutting carbon emissions and rennewable energy
The latter choice will be the easy but wrong one to make and is in stark contrast to the Shadow Chancellor, George Osborne who is setting out his stall very early by suggesting he wont be afraid to make some tough decisions.

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