Another grim and miserable Monday

Stupid article of the day

It comes from Anatole Kaletsky; who thinks that all our problems are "financial not economic." Let see; the UK has a massive current account deficit; no manufacturing base; rising inflation; a depreciating currency; a huge fiscal deficit; a rising public sector debt stock and a massive negative net investment position. As for financial problems; insolvent banks, a ruined pension system, a crashing stock market, and an imploding housing market.

Kaletsky's article is a bit like telling someone with broken legs that they are really OK because they can still use their hands to write.

We are in recession

A slightly more sensible article from the Guardian.

Expect more US bank failures

"More than 300 banks could fail in the next three years, said RBC Capital Markets analyst Gerard Cassidy, who had in February estimated no more than 150."

Former PM says inflation is now running at 10 percent

Major should know a thing or two about inflation. It was under his watch that inflation last reached 10 percent.

Santender to take over A&L

It takes a brave investor to take on UK housing market debt.

FT: the Freddie and Fannie bailout

Here is the news story.

Clive Crook on Freddie and Fannie

"US taxpayers are about to find out what their long-standing and (strictly speaking) non-existent guarantee of Fannie Mae and Freddie Mac will cost them. One way to think of it is this: take the US national debt of roughly $9,000bn and add $5,000bn. Not bad for an obligation still officially denied."