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12 November 2012


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A Eva

I enjoy your blog terry keep it up.


Hi Terry

I agree completely and would like to throw in one more factor which is the state of Frances banking sector. I discussed this in my Notayesmanseconomics blog on Friday.

Last week alone we got yet another increase in what France has had to pay out to keep Dexia going and also Credit Agricole admitting that buying a Greek bank was a disaster and accounting for the losses made. Not only was France having to pay more for Dexia but also her share of the losses rose too.

As her economy weakens there will be a double-whammy from her banks too.

Terry Smith

Notayesmansecon: I agree, the French banking system is another feature of the French economy which is in a parlous state. I suppose trying to keep to the discipline of the radio interview I didn’t go through every factor. But you are right.

Terry Smith

A Eva: Thank you.


I commented on the UK pension thread and this post emphasised to my mind the over-riding problem for us in the UK. When we've found ourselves in the proverbial before (eg 1970's) we've been more or less alone and could get "bailed out". I'm not sure there's a country anywhere in the world at the moment that doesn't have some or all of the problems which you outline for France and the US. I can't see how we avoid the consequences??

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