Keeping a watchful eye on media forecasts about the Economic Crisis
Amid the welter of conflicting media opinions on how well or badly the world, and in particular the ‘Western’ world, is faring and whether we are close to bottoming out yet, with the requisite appearance of promising “green shoots”, concerned readers might benefit from a perusal of the recent plausible warning by Matthew Lynn that the UK is just as worthy as Ireland to be downgraded from a triple ‘A” rating by the international ratings agencies (Standard and Poor’s, Moody’s and Fitch). As Lynn – whose financial advice is more often accessible on a subscriber basis – elaborates, the consequences of such a decision for the British economy would be very serious. He also comments that the powerful agencies find themselves on the horns of a dilemma because their income is dependent on the City of London. Lynn’s conclusion, nevertheless, is: “People in the bond markets reckon Fitch will break ranks first, as it did with Japan.” [in September 1998]
For the full article, go to the Spectator website (www.spectator.co.uk) for ‘Brown’s Nemesis awaits – and his Name is Brian’.
This same Spectator issue (for 20 May 2009) offers an equally sobering editorial on the current U.S. position, ‘It’s Groundhog Day for Obama’s economic team’ and a cautiously optimistic article by the veteran finance expert and delightful stylist, Martin Vander Weyer: ‘Green Shoots with shallow roots’.