That is the question all serious economists are asking but the financial markets are ignoring. A raft of data confirms that the US economy has gone into decline in the third quarter of 2008 with the largest fall in consumer confidence and spending in the same quarter since records began to be collected in 1947. [...]
The about turn by central banks and governments show the depth and breadth of the crisis facing global finance and capitalism. They went briskly from taking toxic assets off the banks’ books – so that trust could be restored between financial institutions and lending would free up not just between them but to individuals, corporations [...]
The lame attempts by Brown and Darling to prop up the financial system were treated by contempt by the financial markets with the FT-SE 100 index of leading shares down by over 5% on the day after they announced their latest bailout plan. The equity markets are pricing in a global slump that would match [...]
