Today the US government seems to have provided what might be a short term rally to the financial markets - just when the savings and loan problems were largely swallowed and discounted into the lower price of shares - by announcing a takeover of two large American mortgage lenders, Freddie Mac and Fannie Mae (you couldn't make it up if you tried!). My main concern is that the UK government don't see this as a rally call for themselves to do something similar in the UK!
As a consequence the UK stock exchange index has started with a 3.6% rise this Monday morning..
But, wait and see the impact over the time period it takes for the market to work out just exactly what difference a government, even the US government! can make to international capital markets??? Later chart planned for posting on Tuesday or in a week's time..
Remember the Northern Rock indecisions?
Please Gordon & Co. in the words of Grandmaster Flash 'don't do it!'
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