I'm not sure about the HSBC rights issue. They bought Midland for a song in a previous crash so are they gearing up to go shopping in this one OR are they wisely filling up the fire buckets before the first flames are seen in the windows... Not sure. Think its more the former but then that would be the bullish side of me running riot!
2007 was the year of the ugly Dollar. 2008 of the ugly Pound. 2009 will be the year of the ugly Euro. Sky rocketing unemployment and an inability to export will force them to crash their currency. Which is a good thing. A strong currency is more of an ego trip than a good thing. Its the collapse of Eastern Europe and the Belgian/German/Austrian/Swiss banks that lent to them that is the real show to watch.
As todays appalling stock market falls go to illustrate we are a long way from bottom yet. Woolies and a couple of frock shops are merely the hors d'oeuvre of this crisis. 3.5 million unemployed, 7% GDP contraction, houses down 35% and then we can start talking about finding bottoms. Missus.
My previous advice of entering the wannabe pilot job market in 2011 at the earliest really needs pushing back a year I think.
Next winter is when the airline job losses will really kick in. Do nothing until at least then when the scale can be assessed.
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