After announcing the QE3, Fed Chief Ben Bernanke is hoping that the DOW Jones will keep going from strength to strength (suggesting that some of the $40 billion per month going into mortgage-backed securities will go into Wall Street) and the investing public can then take some money off there and spend it, creating a consumer boom. It seems a good formula, and if put into practice by the public, it will see a continuing Recovery.
Meanwhile, the small pause yesterday was being attributed to Spain not asking for a bailout straight away. It is a weighty decision for Prime Minister Mariano Rajoy, who is seeming to employ a winning formula, announcing budget cuts and putting new money into the banking system. After a little bit of pain for people getting smaller salaries, there will be a period of growth as more jobs are created as the new money goes into the system. If the capital in the banks is replenished, then of course there will be jobs created, for mortgage advisors and bank clerks, estate agents, solicitors to do the conveyancing and so on.
One fact gives me hope. In a part of Malaga, where houses and flats are cheap, the bus service is just about every two hours. Just imagine that. If they put on more buses there, more people would surely move into that area? A huge potential for growth into normality is there.
As they take out the maraccas and put on the Flamenco dancing, and croon a viva la Spania, very soon we can all drink the red wine and say Ole!