Instead of Masters of The Universe, imagine them as normal people and the scenario below.

We have two funds A and B. The manager of fund A takes a high risk strategy which pays off in the short term and fund A grows at a much higher rate than fund B. The manager of fund B is called in to explain why is fund is under-performing. He explains that Fund A has adopted a high risk strategy which will fail in the long term. Unfortunately, the short term lasts a number of years. Every quarter fund A outperforms fund B, the manager of fund B gets a grilling into why his fund is under-performing and told his job is on the line. The two fund managers meet down the pub and fund manager A tells of his increased salary and massive bonuses. Eventually the manager of fund B decides to adopt the same strategy as the manager of fund A and hopes his salary and bonuses will see him through when the whole thing crashes around his ears.

Now expand this scenario for all the funds about to day.

Keith, Ashford,

Whose idea was globalisation anyway? Was it businessmen looking at ways to increase their salaries, bonuses and personal status.

Luckily globalisation, so far, only means the Western world, leaving us all to boom and bust together. Though the Eastern manufacturing base will also suffer as imports to the West decrease.

Has globalisation already gone too far for any individual state or country to exert any control over global markets. The massive state interventions so far seem to indicate that the global free market has got itself into such a mess that it is almost beyong help.

Thinking that the little old BofE can save the day is rather naive. Black Wednesday, many years ago, showed that the free global market was, even then, beyond the control of UK intervention.

This is progress !!!!

Keith, Ashford,