Bond Outlook September 19th

The essential first aid has been applied, brandy has been given to the victim, who has shown signs of life. Are those signs – the surge in stock markets – really evidence of a full recovery? Alas, no, for the underlying wounds have not been addressed:

• US households must eventually match revenues to expenditure as otherwise this will just be another turn of the wheel before it falls off altogether
• The bubble in housing must continue to deflate, i.e.