Spend Your Way Into Trouble- Now Spend Your Way Out?

Equities benefited from upbeat US data yesterday and the Dow closed over 1% up..Asia was slightly more mixed, with China still struggling, but the Nikkei put in a strong performance. One thing worries me- actually lots of things worry me, but let's stick to one for now. The recovery is still being driven by governments spending money they haven't got- and providing artificially cheap money for everyone else to spend.. Mr Obama has just announced that the US budget deficit he is budgeting for is $1.6 trillion.. next year it will be $1.3 trillion. Headlines in the UK are about extra billions being spent on defence, not about plans to lower spending. Where is the fiscal prudence?? Where is the desire to take our medicine and ensure a stable future?? Where's my coffee?? Where are the plans to stop the next crash being as bad as the last- and please don't tell me restricting "proprietary trading" at banks will stop it.

If an individual keeps funding growth in his personal spending by borrowing more and more, it leads to bankruptcy and hardship... someone please tell our governments that? After all, it's our money they're spending. A married couple with three kids in the US will, by the end of this year, have a share in the US public debt amounting to close to $250,000. Time someone actually asked the guys spending this money how they're goping to repay it. OK..end of rant..CDS indices tightened yesterday, so all markets rejoiced as February began, Proctor and Gamble the biggest name in the new issue market. Home and vehicle sales. plus consumer confidence to come from the States today, PMI from the UK. Happy Tuesday- the US National Debt will have grown by $4 billion by the time you read tomorrow's comment...Yowsah....