Thunder and lightning
THE MARKETS are there already. That is why the economy's thunderous impact has derailed them. To sustain this pace, US companies are going to need more money. The big ones will turn to the bond markets and the small ones will turn to the banks. The US bond market told that story this week, and so at one remove did markets round the world. The dollars which until this year were roving far and wide in search of gainful employment are likely to find it at home. Tearfully, their temporary hosts wave them goodbye. On the day when the 71/2 per cent growth rate was posted, Paris shares lost 21/2 per cent of their value, Lon- don shares turned turtle and British Gov- ernment stocks sank. I am knee deep in analysts' circulars telling me how cheap these stocks are or, indeed, were at last week's prices. I prefer to reflect how lucky (or skilful) the Government was to sell £50 billion of them last year while the going was good. By now it is sticky. From New York last month, I reported how the Fed's first increase in interest rates had sent shivers through the world's markets: 'This is how markets catch cold.' The wind-chill is now more severe.
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