Thursday, February 12, 2009

"In the face of the overwhelming evidence that we could no longer afford to continue living the way we were, why did we continue?" - my comments on Budget 2008 were 100% correct.

This is a soft voice withering in the wilderness, but mark these words. All the applause for a great budget is also a national endorsement of a license to consume - in a basic sense - as we have been. And that's nuts. - Nick van der Leek, February 21, 2008
Part of the job of Finance Minister (think of Allan Greenspan too) is to 'be positive'. To say things that will please the market.
Are the markets too sensitive to deal with 'too much' reality? Apparently so.
So the cup is ALWAYS half full. Last night the Rand was R7,87 to the dollar (a five year low) as speculators feared capital flight, but after checking the fineprint we're back to 'normal' levels (whatever that is). Sure enough the economy - reflected in terms of the JSE - is right as rain again, bouncing happily up to 30 000 based on fundamental bullshit. Someone makes a speech and says, "Hey, things aren't so good, but really, they're not so bad either." What does that mean? So if everything is right as rain and the storm clouds are gathering (presumably for more rain) but all's well in Vegas, where is all this going? Back to Delusionville. Financial Wishfulthinkington. The JSE is up 1.82% to 30025.240.
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