The global stock markets are now trading on words coming out the mouths of politicians, Obama tried the ‘buy US stocks now they are cheap!‘. Gordon Brown waffled out the ‘we can come together and solve this’ jibbrish, now China’s Premier Wen announcing (rumored) a huge 2nd round of Chinese fiscal stimulus. Of course one can’t discount the market euphoria is based on hysteria. China with an artificially low currency may now become a new type of protectionist on a huge scale. An attempt to produce and consumer their own products, not to mention selling US treasuries to fund it’s own consumption. Very scary. Oh yeah, China will try and buy as much stakes in commodity producing countries (private companies). If that is the case the West will definitely need China to revalue it’s Yuan, otherwise it’s ‘buy American’. Protectionism is on the table again.
Rating agencies have had a big slap on the wrist for completely stuffing up credit ratings for the MBS/CDO’s and other junk from the US subprime/mortgage meltdown.
So now they are gonna play hardball (to gain some respect, as Obama will regulate the F*** out of the rating agencies). Get ready for the downgrades, on everything…
morbius glass 