The man in the street is worried. <You and Jay are in the eye of the storm, would be interested in reading your man-in-the-street stuff: > Partly that is the usual London norm - getting about London is a strange way of life which millions like to do. Not far north, south, west and east is beautiful bucolic countryside but it's largely empty with the hordes seething here where, presumably, the money is flowing more freely. But commuting transport costs from London to rural bliss are not too high compared with lower real estate costs out there, so people must prefer the horridly expensive piles of bricks, the noise and anonymity, aggression and stress, which are the price of city life which includes their friends, colleagues, family, restaurants, entertainments and what have you.
On the cash flow front, in my heyday in the 1980s, BP, Shell and The City were the centre of the global money flows. Newspapers were a big deal. Now they give away The Evening Standard and the others are battling for cash flow with News of The World closed [precipitated by phone hacking of private messages]. The cash is to be found at Canary Wharf where hordes of youngsters clip the tickets of financial transactions around the planet, snapping up Lehman Brothers and what have you, recycling petrodollars and having a wonderful time down there.
Back at Moorgate [BP's old stamping grounds] it's more genteel, with an archeological feel to it.
If the Canary Wharf cash flow dries up, London would look somewhat more bleak. Tourism keeps money rolling in and accommodation costs high. As do the hordes of wealthy and other refugees from around the world who raid their home countries, transferring their loot here to fund a posh lifestyle in Hampstead Heath and around Harrods, Kensington and whatnot.
Various government places are short of money and are cutting back their spending in what they think are harsh ways.
The final step still to be taken is for interest rates to rise again which will test the asset foundations. That might take a while yet, though the PIGGS are leading the way on that, much to their dismay. As you commented, there is business afoot today in those bond markets.
Mqurice |
