16
Jun
When America sneezes!
The rest of the world caught a cold, or so the saying goes! If this
is the case then perhaps it wont be to long before more stable
markets return. 'Perhaps' being the watch word. Recent reports
appear to be giving a slightly more favourable view on the US
economy with references to an easing of the sub prime and
associated traumas, for example these recent headline grabbers
certainly give a more optimistic outlook. 'RISK OF US DOWNTURN
'DIMISHES'' The US economy may have avoided a major decline, US
Federal Reserve Chairman Ben Bernanke has said, Mr Bernanke said
the risk of a substantial downturn had 'diminished over the past
month or so'. 'US JOBS DATA EASE ECONOMY FEARS' US job figures have
surprised Wall Street, falling less than expected and shifting the
balance of opinion towards analysists not predicting a recession. '
US GROWTH STRONGER THAN THOUGHT' The US economy performed better in
the first few months of 2008 than initially thought, figures show,
the second piece of positive news in recent days. 'US BIG TICKET
ITEMS BEAT FORECAST' Orders for US durable goods fell less than
forecast in April, a signal that the economy is recovering. If this
is to be believed then perhaps the UK may also rise like a Phoenix
from the Ashes in the not too distant future. After all the
depressions in the US started around April last year, and August in
the UK. So is our downward spiral close to the bottom and soon to
rebound? As much as we would like to have faith in this assumption,
and it is not without foundation. Previously US and UK trends have
followed similar patterns. The real difference though is that the
US have been far bolder and more aggressive than the UK in trying
to stimulate the market through a series of strong rate reductions
and tax breaks. Whereas over here, in our usual over cautious
manner we have taken a far more feeble approach, in addition we
suffer at the hands of the Great British press, after all any UK
crises is media driven. There are very few pages, ideals or
characteristics that we should adopt from our friends across the
Atlantic, but a positive mental attitude and more robust approach
would not go a miss!