The Blog From The Smog

Confidence Crunch by Teessider Forever

First Published: 31/05/2010 15:20:26

Until recently I thought all this talk of a double dip recession was just gloom-mongering. What do these so-called-experts really know? It wasn’t that long ago that we were being told that the housing market bubble was set for a soft landing, a period of low growth or at worst some stagnation?

They were telling us that what goes up like a Saturn 5 rocket on pharmaceuticals, won't come down likewise.  I think it was Isaac Newton who said b*****ks!  It does appear that if there’s one thing that this period of instability has told us, it is that those city boys don’t really know their squeaky arses from their pin-striped elbows.

That Robert Preston bloke at the BBC seemed to have the inside track, however I’m still unconvinced that he didn’t have something to do with it.  There would have been a few fewer Geordies queuing around the block if it weren’t for his tales of woe. See to me the markets are never about the money or the credit, it’s all about the confidence.  Not a new theory I grant you.

It doesn’t take a soothsayer of any great insight to realise that people are going to react badly when the news of another crisis appears.  And of all people. The Greeks.  I though they invented all the rules, regulation, commerce and such.  You can expect it of the Spanish.  All they invented was a long kip in the afternoon. The Irish are just the same, who would trust a nation who buried all those potatoes and couldn’t find them.  But the Greeks.  As one of the world’s oldest civilisations they should know better.  We should send them a telegram saying you’re not getting your Elgin Marbles back until you learn to look after your s**t.

It’s not just the Europeans that are pressing on recent bruises to see what colour they turn.  The two types of Koreans are looking more and more like they are going to have a major barney, and it’s kicking off big-style in Thailand.

The net result is that the FTSE dips back down below 5000 points and I’m out a few quid, having only just clawed it back.   It does seem that said confidence could be a long time coming, but it will come.  It’s human nature.  People will just get bored of not having any.

In the meantime I’m going to carry on investing regularly and benefiting from pound cost averaging.  Yep I’m in it for the long haul.  Now that’s confidence.

What do you want to do next?

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