Wednesday, 28 April 2010

Athens, Madrid and Rochdale

From Alphaville: the movement of the Euro against Dollar and the moment when S&P announced a rating cut on Spain. Spain's credit rating was revised from AA+ to AA (two rungs away from the AAA top rating), with a Negative outlook.

Greece, meanwhile, has been offered 120bn Euros to allow itself to stabilise: but how much does that leave for others who might need help, like Spain ?

Now, I see that sensible, moderately minded folk like Stephanie Flanders are basically poo-pooing the suggestion that this sort of thing could happen here. And who I am to disagree?

But, tell me, what was all that public money poured into the banking system on both sides of the Atlantic for if it wasn't to stop this sort of thing? The suspicion must arise that all the King's Horses and All the King's Men haven't really put the Humpty Dumpty of the Financial World back together again.

The Great Moderation is gone, never to return. No-one running the show actually knows what to do now except wait for the next seismic shock in the market.

& what do we get as an 'electrifying' election issue ? The private words of an exhausted man driving away from yet another encounter with an unhappy person. Of course it's deeper than that: the whole thing is so powerful because it can so easily look like an example of the 'liberal elite' speaking in a two faced way to ordinary people.

But this precisely what the 'liberal elite'- and, indeed, the 'not-bloody-liberal-at-all elite' - have been doing for years in respect of how 'financial liberalisation' and the City really work. But we can't have that as an election issue, can we? Someone might get the wrong idea.

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