Economists are like politicians, put a group in a room together and they'll all disagree.
Edmund Conway reports that City economists Goldman Sachs and Fathom Financial Consulting are entrenched is an important battle regarding the unexpectedly weak GDP figures produced last month.
Goldman says 'The GDP figures were hardly worth the paper they were written on'.
Meanwhile Fathom, who insisted that the ONS research, produced as it is by thousands rather than hundreds, ought to be more reliable. He says it was quite conceivable that it is still in recession while almost all other G20 nations had escaped.
I'm with Mark Bathgate (of the Speccie) on this. For those of you with an interest in the latest IMF report it can be read here and the figures for the UK are, to say the least, not encouraging.
Between 'secret' loans to Northern Rock in 2007 (a year before the global crisis) and the furtive behaviour of Gordon Brown in 'selling' HBOS (which at the time had been given an injection of £25.4 billion) to Lloyds TSB, is it any wonder small investors feel angry at not being kept informed? Then again small investors don't matter to the banking industry which has treated them with disdain in the past 12 months.
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8 comments:
If all the economists in the world were laid end to end they still wouldn't reach a conclusion ...
You're possibly quite right there Calum. It's more subjective rather than objective really. Suppose that's what makes it intriguing.
Excellent chart and analysis Subrosa. Who believes a word that Goldman says anyway? I might just swipe that chart for my blog:
http://scotlandunspun.blogspot.com
The chart says it all.
That chart looks frightening. Thankfully, though, we're the best placed economy to deal with the recession. Time to rally round the dear leader, no?
Thanks Alex but the chart was from the Speccie as you'll know. Please do use it. I'm off to see if you've published a post with it yet. :)
The Saviour of the World you mean IPP? I didn't think you'd stopped taking the pills. :)
Interesting though John, especially the IMF reports which I sometimes forget to read if they're not publicised.
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