Goodnight Irene

For a reader whose memory stretches back into the 1980s, you might recall the above track from Dexy's Midnight Runners. Over the weekend it was turned into a slogan by some residents of the US East Coast who refused to evacuate in the face of the hurricane. “Come on, Irene!” proclaimed the posters of the protesters. “We can cope” was the sub text.

As the hurricane, downgraded to a Cat 1 storm, moves on the inevitable questions are being asked. This was no Katrina so was there over-reaction by politicians and press?

Quote, Unquote

Economist John Maynard Keynes once said of the business cycle that in the long run all would be well. He added waspishly, "but in the long run we are all dead."

Watching last week's unraveling of the financial system he might have a point ... but this time in the short run. $2.5 trillion has been wiped off global stock exchanges. It has been the worse week in the markets since 2008 and Lehman Brothers.

And the response from government? As another economist J K Galbraith put it, "In the US though power corrupts, the expectation of power paralyzes." Barack Obama has been characterised as being well meaning but ineffectual. Things have hardly been any better in Europe.