On bear stearns

We are living in interesting times, with Bear Stearns going pop and a day of panic for poor old HBoS...

We are living in interesting times, with Bear Stearns going pop and a day of panic for poor old HBoS. Scary stuff, especially if you rely on the media to tell you what is going on: coverage has revelled in being as alarmist as possible. This is cynical and irresponsible and can do real damage. To keep a grip on events and to fathom out a strategy it is crucial to understand the difference between events in the financial sector and the real economy. It is not that the two are unlinked but cause and effect do not necessarily jump between the two as easily as some more hysterical commentar...