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Fear to fail

It has been said often that it is a lack of confidence that is driving the current economic gloom. Today we have seen evidence both ways. On the one hand AIG book a loss of $61.7bn, a figure so substantial it boggles the mind and warrants a lack of confidence . On the other HSBC book a profit of $9.3bn with an additional $10.6bn being goodwill write down (non-recurring we hope) and yet the equity markets take a major hit. Indeed HSBC have made it clear that they are raising additional funds not just to ensure the balance sheet is strong but also to take advantage of oppotunistic acquisitions. Very sensible I say !  The current environment will not change back to what it was, EVER. We must look for sense and purpose in pockets now rather than the whole. On that basis I say HSBC's announcement gives a reason for confidence and something to build on.


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