Luke Johnson: ...too many of those who comment and advise are theoreticians and academics. I actually work every day with owners and managers who are in a life-and-death struggle to keep their companies going. The grand announcements of economists and politicians appear to bear little resemblance to the brutal realities of business conditions at the moment. By nature most are slaves to the state – what can they know of capitalism? We face stagnant markets for an extended period, and must rebalance our industries – and our principles – if we are to be properly equipped to meet the challenges ahead.
SHOOT: Notice how often the word 'reality' is used, either that we don't know what it is exactly, [that there's uncertainty] or that we're dancing around it.
SHOOT: Notice how often the word 'reality' is used, either that we don't know what it is exactly, [that there's uncertainty] or that we're dancing around it.
Governmental programmes deployed to stabilize and grow the economy appear highly risky, especially those involving an unprecedented Federal intrusion into the private capital system. They have been implemented in an ad hoc fashion with little predictability and consideration for their long-term effects upon the economy... My financial market outlook is rather cautious. I believe the recent stock market rally is nothing more than a bear market rally.. Many forecasters are forecasting an end to the recession by year end, and I have even seen one anticipating a “V” shaped recovery. If my previous comments about the stimulus plan prove to be correct, these forecasts will be wrong. And my net feeling is that this rally does not have all that much more to go and the dangers out there remain consequential.. The dangers in the economy are most everywhere. The stock market is not the economy, although a still overpopulated financial services industry may be tempted to view it that way.
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