This blog entry is brought to you by…

…the letter W and the number 5000

Like many people, I’m currently more interested in the stock and currency markets than I’ve ever been.

I confess to knowing very little about it – although my knowledge is improving – but I think I’ve grasped a few basic principles.

My iPhone came with a handy little app which allows me to see how the FTSE is getting on and I check it almost every day – just to see how things are going.

It’s been a good month for the FTSE, with almost unbroken gains during the past month and I see that it’s already gained 2.76% today, which is a lot.

In fact, it’s knocking the 5000 mark, which it hasn’t seen since about last October.

There’ll be some celebrations then…

But I hear talk of  a W movement in the markets.

It refers to a line graph that appears to plummet, bottom out, rise sharply but then fall to the bottom again, followed by another rise – hence the W.

I think that’s more than likely.

The sheer amount of debt that we now have to carry is staggering and I reckon we’re seeing an Indian Summer on the markets.

No-one – Cameron or Brown – seems to have twigged that unless we show the rest of the world and our creditors that we intend to cut public spending then our credit rating is going fall to a level which means that if we want to borrow any more it’s going to be at punitive rates.

That’s how I read it, anyway.

If anyone wants to expand on or argue with this very inexpert and simplistic forecast then please do so.

I’m a financial idiot – help me out here! Please!

I really don’t get it.

Two days ago we had a budget that will do nothing for this country.

Then, today, we hear that over the first three months of this year, the economy shrank by 1.9% – the biggest  three month decline since 1979.

However, the FTSE had a pretty good day today – up 3.43% and keeping gains that it made during the day which it normally doesn’t seem to do  – and the £ held up pretty well against the $ and the €, finshing about the same as it started today.

Why hasn’t every indicator that we’re in the shit fallen through the floor?

What’s going on?