The Wrong Sort of Recovery

The Conservative Party economic masterplan states that for the
last decade.."growth was too dependant on government spending
and debt fuelled consumption. A sustainable recovery must be
driven by growth in exports and business investment." Could
have written that myself.. maybe they actually understand??
Shame the document then spends 23 pages explaining how the
Tories will do absolutely nothing to correct that situation
over the next 5 years.. although that's not exactly how they put
it in the summary. More studies showing how China has
fuelled the global recovery from recession almost single
handed last year- whch is why markets are edgy about policy tightening
slowing their growth. If it does we'll have to look to the USA
to take on that role, which (on current evidence) will be a good time to move to Mars. However, with their ability to take any little piece of good news and make a recovery from it, equities last night rose over 1% in the US and Asia and Europe followed them up. CDX index tightened over 2bp, ITRX nearly 3bp and the new issue market was active again.. ISM,employment & mortgage data in the US today, Consumer confidence number in the UK was 73, higher than expected. Happy Wednesday, well done Hull!