Eric Edelstein

“Bonds are trading like recession is becoming likely,” independent economist Robert Brusca wrote in a note to clients after the Fed move.

In the US, the stock market fell sharply yesterday after the FED cut interest rates by a quarter percent, when the market was expecting a more aggressive approach - the feeling is that the US is in trouble - perhaps even recession, and that more action needs to be taken to spur the economy - at least more than a quarter percent decrease!

The Dow Jones Industrial Average plummeted 294.26 points, or 2.1%, to close at 13432.77. It was the worst one-day performance for the blue-chip average since Nov. 7.

Now we all know that what happens in the US effects the rest of the world - so if the US is in trouble, South Africa is going to feel it - 2010, you say! Our lifesaving champion has a MASSIVE job on it’s hands.

The Oil price is close to $100. A few years ago that would have been a non-believable story in a fiction book.

The Gold price just moved over the $800 mark. EIGHT HUNDRED DOLLARS!! When it hit that level a few years ago, we all thought the 3rd World War had just begun…

South Africa’s economy might be stabl-ish, (yeah, inflation is slightly over the mark, but generally the country is growing at a rapid rate, seen by the property construction everywhere you turn your head) BUT we’re not isolated…

We’re part of the GLOBAL ECONOMY, and if the US sees smoke signals ahead, petrol increases of 40 cents in a week will be the least of our concerns.

I hope I’m wrong, but with South African consumers begging EVERYONE to take their rands from them in exchange for gadgets, entertainment and short term material happiness and comforts, we all need to take a visit to Oudtshoorn.