Friday, May 08, 2009

Holding steady?

Interesting chat with the lady teller in the bank yesterday. I asked how things were going and she said she thought people were feeling they could cope.
The thinking was that if it didn't get any worse, then they had got through several months without the sky falling in, and so might get through with little or no further damage.
She said there was " cautious optimism" that things would "hold".
I'm not so sure. Is this the eye of the storm? The second half will hit later in the year, do you think?
The Mayor says things are going really well.
But then, they couldn't have been much worse there.....

3 comments:

Winchester whisperer said...

Interest rates can only go up which will bring pain in the future to consumers/mortgage tracker payments but for the moment the revival in confidence continues. Most funds are still high in cash so the market rally is hurting them and forcing them in on any dips. Many companies are taking the opportunity to have placings which is soaking up some of the spare cash and we now know the US banks will be raising $75bn. The jury's still out on QE and whether the stress tests were stressful enough

kinglear said...

WW- yes my view is there is another shoe to drop when the rates start going up again. When, is of course, the operative word. And $75 billion is peanuts nowadays - or as my old uncle would have said "just give me one thousandth of it and I'll give you 3% ad infinitum. You'll have some money and I'll get stinking rich....."

kinglear said...

ww- see BofE? See third leg....?