Does a Dead Cat Bounce? (if named Footsie?)

So the FTSE 100 went up by over 1.5% today after initially falling by over 4%. This wild fluctuation came after it lost somewhere around 18% in the previous week.

But it went up. So everything is fine and dandy.

(There was me thinking we were up sh*t creek without a paddle.)

The Yanks, are still smarting from being downgraded from AAA to AA+. They are moaning that they only owe 13 trillion dollars.

For the mathematically challenged that is:

(I think I got all the noughts in)

The US Treasury is outraged at  Standard & Poors downgrade. Personally Billothewisp thinks Standard & Poors has done a pretty dismal job too.

Billothewisp thinks that, if you have allowed yourself to sleep walk into a position where you owe the aforesaid 13 trillion dollars, really your credit rating should be ZZZ-, not AA+, let alone AAA.

Finally here in England, it seems the (parody of a) government might want to do some more Printing Money Quantitative Easing.

As I remember, one side effect of Printing Money Quantitative Easing is that inflation takes off.

Of course being a simple soul I may be wrong and the current 5% (and rising) inflation is purely coincidental with the last batch of Printing Money Quantitative Easing.

I wonder what inflation will go to after the next print run?


JAA said...

Possibly a side effect of letting overgrown schoolkids, sorry "career politicians", run an economy when before taking office they've never so much as run a tuck shop.

BilloTheWisp said...

I have always wondered at what exactly is meant by "career politician". As you point out it seems to be code for "cannot do anything else".

Anyway,while London burned both on the streets and on the stock market they were all on holiday. Which actually was probably the best place for them to be.

Pity they all came back really.