That Was The Week That Was

So, it's Friday evening, about 15 minutes before the Dow truely settles. In the last 90 minutes it's been on a strong upward swing and, just possibly, it may end the day positive. In a week that has seen over one fifth of the value of the FTSE 100 wiped out and people declaring death, doom and disater everywhere, I'm just pleased that it's got as far as it has without riots. Now we are seeing commodities coming well off the stupidly high prices they were commanding, The only problem looks as though it. currently at least resides with th esuper rich who run or have invested in Hedge Funds. Many of these used borrowed money to buy on the basis that the price increase, effectively asset inflation, would be greater than the cost of borrowing the money.

Now they are caught in a two way pinch, firstly they have to keep borrowing the money if they haven't sold on, most of the money was borrowed in the short term market, the one that is currently frozen, secondly, the commodities they have bought, either physically or on the futures market may be worth less now that they were when they were purchased.

I find it very strange that these so called experts can have got so much a our money wrong