Only In Sweden is Govt Spending & Debt Under Control

Many workers may have had August beach dreams about quitting their jobs when they returned in September. Highly paid and unrepentant bank CEOs can certainly afford to indulge themselves in such luxuries as recent departures from Barclays, HSBC, Lloyds and UniCredit attest. This comes against a background of what may prove a record year for US bank failures as the minnows continue to suffer, not the “too big to fail” that caused the crisis.

Meanwhile those affected by the bankers’ irresponsible actions are still struggling. Discerning Eurozone investors worried that Ireland’s bill for keeping the banks in business could prove unaffordable and that a new triple-A rated backup fund may only provide temporary relief for troubled sovereigns such as Portugal.

Even in the US there is still plenty to worry investors despite the recent “risk-on” rally. The dollar fell as the Fed showed real concern about deflation and signalled its willingness to introduce further quantitative easing. In response Asian countries continued to manipulate their currencies with Korea marking itself out as the last remorseless mercantilist. Only the Swedes managed to retain their customary cool as a new coalition government took the reins in a country where government spending and debt are under control. They may be the only ones enjoying their winter holidays in a few months time.

John Casey, Lex publisher
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