Reply To: IBEX down 7% TODAY !!!!!


I think that the inflation stats are about as reliable as the housing stats. Inflation is supposed to be at 3.1 in the euro zone -but how can that be right when you look at the way our fuel costs have rocketed over the last few years. I go to Carrefour once a month and every time the price of food has gone up. This sounds like south america but it is actually happening in Spain. By my “highly scientific” method of picking a figure from the air I would estimate that inflation is running probably 3X the official figure. (& as for 2% in the UK -don’t make me laugh).
I think there is a good chance that Bobo the clown Bernanke at the Fed will cut rates today, and I agree with ralitas comment -they will regret it in the future. It’s like giving a new credit card to someone already chronically in debt. The markets see through it, they are getting hammered again today. It may offer a brief respite, but I think in essence it will just offer the hedge funds an oppportunity to short the markets and lock in those multi million pound bonuses that we keep hearing about.