It seems the silly season is extending to financial markets. I have yet to hear a convincing explanation about how the credit crunch is supposed to be such a disaster for the companies quoted in London and New York – yes, its bad news for American homeowners and a few of the more speculative private equity deals. But we need these credit squeezes to make sure we don’t repeat the mistake of Asia in 1998 and have asset prices pumped up to ridiculous levels by cheap debt. Isn’t this the kind of weeding we need in a healthy stock market? And as Lombard Street research powerfully argues here stock markets are now looking rather cheap by historical standards. Braver souls than me may consider this the time to buy.
Britain’s best politics newsletters
You get two free articles each week when you sign up to The Spectator’s emails.
Already a subscriber? Log in
Comments
Join the debate for just £1 a month
Be part of the conversation with other Spectator readers by getting your first three months for £3.
UNLOCK ACCESS Just £1 a monthAlready a subscriber? Log in