CREDIT CRISIS BACK IN FOCUS

As Athens and Rome show the world, politicians may not be able to solve the complicated credit crisis. Therefore a professional technocratic government shall work through the issues, confront citizens with unpopular decisions and help the political class to survive the disaster mostly caused by it.

Not enough that ever more European countries suffer from unsolved funding problems, now the US is back in focus. The Republicans and Democrats were unable so far to find any common ground, thus the financial and budgetary disaster continues to rattle Washington.

There are mixed views on how the disagreement may help or destroy the US economic outlook, however it is clear that the key western allies are looking at a very problematic future in the short-term.

As a result, currency movements remain range-bound, hit now and then by news which cause a frantic rise or fall. As neither the US nor Europe can present solid solutions for this global credit crisis, a rather negative economic outlook needs to be prolonged as states will hardly be able to stimulate economic activities due to their funding problems.

On top of all that the oil price continues hovering around $100.00 per barrel, a premium price for consumers already hard hit by current economic realities. Price movements of oil are often erratic, however it is forecast to remain at the higher end of this year's range right into December.

Yours sincerely,
Gerhard