Happy First Day Of Q2!
Feeling good? If so, SocGen currency analyst Kit Juckes has just what it takes to get you feeling down.
In his morning email to clients he writes:
Read Wolfgang Munchau in the FT if you want to start Q2 depressed. I’m pretty sure it isn’t an April Fool’s ‘joke’ piece, but “it is logically irrational for a Spanish saver to keep even small amounts in the Spanish banking system’ and ‘for Spain too, it will become economically rational to leave the eurozone’ is pretty aggressive even for Mr Munchau.
Also for those who want to be depressed, he recommends David Stockman’s NYT op-ed about how everything is a debt-fuelled bubble, and going to collapse in a smouldering heap.
So there we go. In the US, we have an unsustainable money-fluffed recovery; in the UK we have a Sheriff of Nottingham style attack on the poor; in Europe we have respected journos arguing for deposit flight. But in Asia this morning, and with the exception of India, we have decent PMIs and an on-going economic recovery.
So yeah, there’s plenty to be depressed about.
But actually the Stockmans of the world are a good sign. There’s still a deep well of residual hate for the US recovery and stock market comeback. We wouldn’t like to see everyone on board.