The news that the stock market is falling following the partial nationalisation of the UK banking system should not be taken too literally as a failure of the government's move.
Alistair Darling's announcement this morning should be judged in 3-4 years and not as an immediate market response.
As I write this very quickly before rushing to a lecture,the FTSE is down over 5% in the first hour of trading and markets in Europe are continuing to fall.Overnight in the Far East,Japan's Nikkei closed down or 9.4%, at 9,203, its lowest level since June 2003.Wall Street finished down over 500 points for Tuesday.
This is going to be an important day for the long term future of the British financial system but let's not start to panic just yet.
No comments:
Post a Comment