This morning stock markets are falling around the world.

Following on from the “head in the sand” Budget yesterday it appears that the problems across the pond are a lot worse than is being told. Trumpo has just received a phone call from a spooked senior official of a top 3 clearing bank pulling most of their mortgage products and running for the hills.

I think that Ken Clarke’s reference to Alistair Darling as a “whistling chancellor” is spot on - we are about to enter a period of unprecedented uncertainty and nervousness that everybody in the UK is aware of appart from the Chancellor.

I have been thinking about the credit crunch and the impacts going forward, the $200 Billion pumped in to the money markets yesterday is not enough; it may well need to be $2 Trillion.

We may be moving form a credit crisis to a solvency crisis, as even if the money or liquidity becomes available, the ability of people or businesses to repay may not. 

The required liquidity to bump start the worldwide financial markets again is currently unknown.

Any ideas?

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