GOOD NEWS

First of all it’s Diwali and let’s celebrate that.

It was the palpable over confidence and hubris of the politicians, economists and bankers that lead to the 2008 world economic crisis and its political consequences. However, the current lack of confidence about the future is also palpably unsustainable based on history and experience. This being said, history has always taught us that it is only when problems are recognised and agonised about that they are dealt with. So what is the good news?

1. The Eurozone has come up with a plan that given political goodwill (and a possible investment from BRIC countries!) might just restore confidence in the world economy.

2. US economy has returned to solid economic growth in the third quarter of 2011, despite the drag of unemployment and lack of a recovery in the housing market.

3. Finally, just before one writes off Europe, interesting to read in today’s paper that Spain is to build and operate the Saudi Arabia high speed rail line and that China’s own high speed rail plans both for internal and external sales are faltering following the major accident in Wenzhou as a result of their haste to build the world’s biggest bullet train system without due regard to safety.

Which brings me back to Chancellor Merkel, who has been criticised for being behind the curve, but whose possibly more thorough (Germanic?) approach may in fact be more viable in the long term.

Depending on which paper you read and on what day, you can find enough news to decide whether your cup is half full or half empty. Here again I make no apology in borrowing our old friend Gary Ralfe’s favourite saying that ‘things are never quite as good or bad as they seem’.

Have a great weekend!