Keyboard worrier

Wednesday, September 17, 2008

Banks: justice will not be done

Financial website ThisIsMoney speculates that the FTSE could drop another 20%. I couldn't resist commenting there:

20% down would be about right. The banks have blown up a balloon for the past 5 years and then popped it - it's what they do. They cannot be punished severely enough, nor can the regulators who shrank reserve requirements. If the FTSE hits 4,000 I will finally be able to invest again.

This temple-cleaning call is also pretty much the view of Karl Denninger, but he's doing more emphatic bold, capitals and underlining - unconsciously betraying that he knows, deep down, that "it ain't gonna happen, Cap'n."

2 comments:

Anonymous said...

Oh I don't think for a moment that it'll stay above 4000, unless HMG run a great inflation. That may be beyond their powers just now.

Sackerson said...

Not sure I'm quite as pessimistic as that, DM - 4,000 would approximately put us back to 2003 in real terms, which is when I was starting to think of recommending investments again.