For a while we thought there was something wrong with our perception of the world. Case in point, since the financial markets hit a nadir last March of last year 6500 for the Dow Jones Industrial Index, the market roared back to trade as recently as high as 11200, which was very confusing to us bystanders who no longer had money to spend, jobs to attend to or homes to live in. Of course that only made us wonder if those financial sorts knew something we didn’t or what we always thought to be the case- that they are finger trigger happy gun slingers so removed from economic reality that any new news that slightly upsets or reaffirms their preferred view of reality can send markets in wild gyrations. Case in point this morning. Observe ugly chart to the left and all the down arrows.
With economic realities starting to sink in to the banking community who despite almost two years ago being on their death bed had gone on to make record revenues in recent times (a public bail out always goes a long way kids) it seems they are now coming to terms with the bitter reality that although they can afford the luxuries of life most people can barely afford to glance at a morning Starbucks espresso for fear of upsetting their carefully balanced budget.
So as the European debt market deteriorates and by extension the growth engines the world is once again asking itself are we going back to hell and if we have to can I at least afford that espresso?