This Bailout Thing
How the hell is pumping $700 billion to $1 trillion (depending on who's figures you believe) into the markets really going to make any difference at the end of the day?
Why is crude up $17/barrel on the back of it? The idea that the lower prices we've seen will stimulate & increase consumption is surely just pie-in-the-sky.
The average consumer isn't suddenly going to start buying more petrol because the pump price has come down a few pence. Their decision was made when oil almost hit $150/barrel. The SUV has been sold & the Corsa is on the drive.
Unemployment is still rising (ask ex-Lehman's employees), as is the cost of living. Home fuel bills are still going up. I don't see half of Americans suddenly leaving the lights on all night thanks to the Fed throwing cash at Wall St.
And I certainly don't see the mortgage company sending out letters saying "Dear John, don't worry about the mortgage this month Bernanke's paid it."
It all seems like a massive knee-jerk reaction to me. Once reality kicks in, we'll all be back to square one. Except the US government will be $700 billion plus behind where they were last week.
Still that's Obama's problem.
Why is crude up $17/barrel on the back of it? The idea that the lower prices we've seen will stimulate & increase consumption is surely just pie-in-the-sky.
The average consumer isn't suddenly going to start buying more petrol because the pump price has come down a few pence. Their decision was made when oil almost hit $150/barrel. The SUV has been sold & the Corsa is on the drive.
Unemployment is still rising (ask ex-Lehman's employees), as is the cost of living. Home fuel bills are still going up. I don't see half of Americans suddenly leaving the lights on all night thanks to the Fed throwing cash at Wall St.
And I certainly don't see the mortgage company sending out letters saying "Dear John, don't worry about the mortgage this month Bernanke's paid it."
It all seems like a massive knee-jerk reaction to me. Once reality kicks in, we'll all be back to square one. Except the US government will be $700 billion plus behind where they were last week.
Still that's Obama's problem.
