What could go wrong now? (The Pound Edition)
What could be the 2009 “surprise”?
Simple, according to Deutsche Bank’s credit strategist, Jim Reid:
So if 2009 goes horribly wrong it’s probably because there’s a run on a major currency or a Government bond market than because of wide scale corporate defaults. At the moment the UK remains the lowest hanging developed market fruit. For those of us living in the UK it remains scary how exposed we are to the full force of this credit crisis.
Reid makes the point that the UK still has one of the most expensive property markets in the world. But against the headline fall of around 15 per cent in 2008, prices are actually down 30-35 per cent in euros and nearly 40 per cent in dollars. So…
If the UK won’t do the adjustment internally, then the currency market is rapidly helping us on our way.
The U.K. Hedgefund under fire????
AUTSCH!!!
