It is a more likely scenario than any one Euro-country crashing out, bringing the whole house of cards down. Until and unless the euro, so faulty in its design, is drastically reformed, thereby abandoning dreams of a Europe-wide empire.
It gives me little satisfaction to have been proved right in the role of housing and policies of monotenural home-owership as one of the causes of the subprime mortgage crisis.
Although the Footsie 100 was up 0.6% last week, the 250 was down 3.1%. At the start of the that week – and most of the week before – the IT/hitech bubble sector was deflating rapidly….in some cases by a staggering 65%. Nazdaq, Dow and S&P futures in the US were all negative yesterday. In the light of this – and new evidence of China’s problems – Asian stocks struggled overnight.
The flight to safety, as I’ve written before, is on. Starting at the top, smart bourse money is reducing risk and paying off debt. Top-end property sales in London were reportedly slower in London last week. Sotheby’s shares plummeted by 27%. French properties in the glitzy hotspots at over €1.5m are flatlining.
The élite has its safe homes, its debts down to near zero, and its directionalised mug-stocks sold. There’ll be some further tidying up and a few small-scale…
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