The Slogger outlines why the ‘experts’ have got it wrong yet again
1. How any economist can ‘know’ at the moment what either Party will do is beyond me. The Brown/Balls v Darling/Mandelson schism changes the Party’s mind each week about how much and when and what.
2. Over at the Treasury, they are dreading the Budget. Darling and Balls will still be arguing in the taxi going to Westminster.
3. These signs are very, very bad indeed as far as the S&Ps and Fitchs are concerned: it suggests politics taking over from good governance. Both these rating agencies are leaking that unless action is taken and soon, they will downgrade the UK from AAa.
4. Senior Eurozone credit managers believe that the people in Athens are far more on the ball than our Treasury is…but the Treasury’s hands are tied by politics.
5. Much more of this and we will start to attract unwanted attention from the Hedgies.
6. There is no way the private manufacturing sector is anywhere near ready to respond without further QE. King has pulled this plug because the cupboard is bare.
7. It matters not if 260 economists sign letters: they don’t get out enough. This is about commercial anthropology, not dusty graphs and shiny elbows.