I Read It, Therefore It Must Be True

The World Economic Forum has issued its 2009 development index meant to indicate global rankings for “stability” and “sophistication” of each country’s market and financial systems. Guess who came in at No.1?

Britain!

That’s right, you read it correctly, the above paragraph mentions the word stability. Huh? What does this mean for a country that is currently having its currency trounced by every other nation, and has one in five eighteen to twenty-four-year olds unemployed.

Apparently the UK made the leap to the top slot due to its foreign exchange and derivative markets being particularly strong compared to other nations, leading London to be named the financial capital of the world, beating Wall Street. Another surprise in the list came with France and Germany coming in at 11th and 12th place, respectively, and Australia beating America as well, for having a relatively stable banking system. In fact, there hasn’t been one failed bank or bail-out in the last twelve months in Australia, so no more jokes about the Antipodes being just a vast former penal colony inhabited by monosyllabic surfers. Oh no, it’s also a place to keep your money.

It begs the question, if Britain is in such great shape, can someone please help sterling get out of the trenches it’s apparently not in, and explain the new press release from Alistair Darling saying despite the city boys making obscene bonuses, the country was in contraction last quarter.

Don’t believe the hype. Just yet.