One can dream.
Shares in China were on the slide again yesterday, with the stock market in Shanghai down another 2.67 per cent, taking losses since June in what has been dubbed ‘The Great Fall of China’ to 39.71 per cent.
The Great Fail of China.
Last month was the worst for the FTSE 100 index in London for more than three years and the blue chip benchmark is nearly 15 per cent off the all-time high reached in April.
You think that’s bad?
You think that’s it?
Claudio Borio, chief economist at BIS, warns it is ‘unrealistic and dangerous to expect’ that central banks ‘can cure all of the global economy’s ills’ through low interest rates and money printing and BIS is calling for an end to the era of ultra-cheap money.
The time for sanity was 2008.
Of course, he was not alone in being taken by surprise by the last crash. The Queen famously asked in spring 2009: ‘Why did no one see this coming?’
The answer, from the British Academy a few months later, was that there had been ‘a failure of the collective imagination of many bright people’.
Oxymoron in there somewhere.
Seven years on, the storm clouds are gathering once again, as the world struggles to bounce back from the collapse of Lehman and its painful aftermath.
This was the foreplay. It didn’t work. The IMF is going in dry.
In other financial news:
- Subprime mortgages are coming back, because we all know what a spectacular success those were last time.
- People are stashing cash under the mattresses instead of spending it in the economy, oblivious to the fact that if the banks collapse, it will be because the cash is worthless. But hey, at least they won’t run out of TP.
- BoE are hinting negative interest rates because they’ve straight up run out of ideas.
- They still push BTL despite the economic damage because Baby Boomers need even bigger portfolios and property values can never ever go down.
- Baby Boomers outraged there is no such thing as free
- Because being in the best position of all time and all current generations isn’t enough.
Despite the rise of new generations, it’s worth remembering that the baby boomers still hold a large chunk of the developed world’s wealth.
Demographic change is a particularly dominant theme across the portfolio and the funds’ managers exploit play this theme via a number of healthcare and pharmaceutical names.
As a wise philosopher once said – ‘demography is destiny’.
Wise to remember when they push for hostile immigration of more people who want to sponge off the State.