Meltdown 2

Whither the global economy? Is it as bad as we think? No, it's worse. More blood letting expected today. The Guardian reports:

Policymakers were the heroes of Meltdown 1, thumbing through their copies of Keynes's General Theory to come up with the measures deemed necessary to prevent the global banking system from imploding. But if the next few weeks see Meltdown 2, the policy options will be limited. Interest rates are already at rock-bottom levels while the flirtation with Keynesian fiscal policies was brief. As one analyst put it on Thursday, the monetary and fiscal guns are not obviously full of bullets.

If you are looking for a chink of light (and it is only a chink), the pound is doing rather well against the euro ...