Just for once it was good news that made the headlines yesterday, markets across the world surged, and analysts were breathing sighs of relief as real evidence emerged that the US may, just may, be getting close to bottom.
Mind you, some of the news that developed yesterday was a funny kind of good news, with analysts, it seems, determined to find silver lining in the darkest of clouds.
For some time we have been saying that the baton has been passed on to Europe. If the US is going to export its way out of trouble, then it’s not really being realistic to assume it can manage this purely on the strength of the burgeoning economic powers of the developing world. It needs to sell more to Europe too, and it needs to see a European-led recovery. Yet there is growing talk that the European recovery is looking increasingly fragile.
Then there’s George Soros, again, he has been talking about the end of a 60-year credit cycle. Is he right?
And finally, Alistair Darling does an about-turn. They used to say Gordon Brown was lucky, well it appears that mantle now applies to his successor. How can he get away with the level of incompetence he has demonstrated over the changes to capital gains tax? Well luckily for him, some of his colleagues in senior government have shown an even-greater level of incompetence, that, for the time being at least, Gordon Brown has no choice but to back his chancellor all the way to the polling booth.
But first, let’s turn to the good news, and read the next article.
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