The brutal reality of slowdown is becoming clearer. Surveys predict 1/3 of UK companies are going to announce layoffs and zero wage rises. Unemployment remains stubbornly high in Europe. Despite the US adding jobs it’s still well below the long-term trend. Recovery is not going to be driven by consumption. New Bank NPL provisions in the US and Europe exceed $140 bln – almost as high as losses from 2008! Even China’s much vaunted virus recovery seems stuck at 80% return to normality.
As the crisis deepens, the greed stories are beginning to leak out. If you haven’t read about the naked graft and corruption of Kodak reinventing itself as Big Pharma overnight with the help of US Govt loan, or companies paying bosses massive bonuses shortly before they go bust – then catch up. For every scam that’s been uncovered, hundreds are probably occurring – slipping under the radar because of the incessant deluge of bad news.. These stories are inflaming already frustrated voters. Full Story