Equities look the best bet for a sweet but short uplift

Free money and a profligate fiscal policy in the US have achieved the near impossible - job creation. But don't count on a sustained upswing and meanwhile look to equities as the asset of last resort.

Both the US and Japan are now creating jobs. This will provide enough wage income to sustain the excesses of the world economy a bit longer. President George W Bush and Federal Reserve chairman Alan Greenspan have succeeded in doing what I once thought they could not do ? push a monetary string stiff as a drive shaft, linking free money to jobs.

Free money and profligate fiscal policy have also inflated financial assets and kept housing bubbles bulging.

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