Dale versus Krugman
Well known Tory blogger Iain Dale says:
It’s worth reading the article in full, because you can be sure that’s what a lot of potential investors in the UK will be doing. I don’t think it will be encouraging them to put their money into this country. I’ve said all along that restoring economic confidence is the main task of the government, as few people will want to risk their money in an economy which looks risky. The level of deficit spending is another factor in a potential investor’s decision. Many still believe that our credit rating is in danger. If we lose our triple AAA rating then all bets will be off. It hardly bears thinking about.
Well known Nobel Prize winning economist Paul Krugman says:
Hmm. My attention has been on other things, so it’s been a while since I looked at British bond rates and CDS spreads. But here’s where they are right now: 10-year bond rates at 3.737, compared with 3.337 for Germany; CDS spread at 71 versus 35 for Germany. Really not so bad.
But, but, wasn’t Britain supposed to be hurtling toward bankruptcy?