Just read this in today's Money Week.
As you may have gathered from previous posts I spent most of my "A" level classes trying (and sadly failing) to woo the scrumptious Denise Knox rather than listening to the wise words of my English & Economics teachers.
This is probably the reason why I simply can't get my head around the strategy of the UK simply spending it's way out of trouble. Indeed, my very first post on this blog was about that subject.
Money Week have this to say.....
The more you look at the numbers, the scarier it gets. Fifteen European banks now have assets - and liabilities, too, although bankers don't like phrasing it that way - larger than their home economies. That compares with ten such lenders three years ago. In Britain, for example, Barclays' balance sheet alone is bigger than the country's entire annual output.
and leaves us with this sobering opinion....
But one price move does make sense. It's an old MoneyWeek chorus, but the more you look at the threat of another bank blowout, the more the latest gold price rise – 28% since the start of September – makes sense. Even at over $1,200, it's still not too late to buy. No doubt there will be plenty of corrections along the way (Gold's still looking good), but the current gold bull market is a long way from ending.
Sorry to highlight such negative thoughts but it's enough to get me planning a big extension to my potager* in 2010.
www.cognacproperty.com
* vegetable garden
1 comment:
So instead of investing in property in Dubai, we are asked to believe the writer in Moneyweek, who now proposes we put our money into bars of yellow metal and hide them under the bed? Doh!
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