Monday, July 14, 2008
Anatole Kaletsky: more wrong than David Smith?
"Sometimes markets make spectacular blunders, completely losing touch with the real economy. While Wall Street has gone into meltdown since the beginning of June, conditions in the real economy have been unambiguously improving. The latest employment figures confirmed that economic conditions had stabilised after their sharp deterioration in the winter, while purchasing managers' surveys, the most reliable indicator of very recent economic trends, suggested a continuation of the modest but clear improvement that began in April. It is time for regulators and governments to recognise that market prices are sometimes plain wrong."