Are we poised is to see the third leg of the credit crunch crisis?
After the initial credit crunch hit the US and began to spread around the world there was a period when many observers believed concerns had been overdone and the markets and economies around the world would return to "normal". However, we then saw a second leg which impacted upon the worldwide financial sector, stock markets, government budgets and other vital elements of "everyday life". However, there are growing concerns that we could be poised to see the third leg of the credit crunch hit the worldwide economy!
Earlier this week we saw concerns appear regarding the Greek economy, which has struggled due to the downturn, with a massive increase in the Greek government budget deficit. There is also the ongoing situation in Dubai which, despite government claims that it is "under control", still has some way to go before it is totally resolved. As a consequence, there is growing fear in the money markets that more governments around the world will struggle to raise funds needed to see them through the short to medium term, a time when the worldwide economy and local economies should start to turn the corner.
The danger is that if economies are starved of potential financial investment in the short term we could see a sharp U-turn and a further lurch downwards. This could literally push the worldwide economy into a depression, never mind a recession!
Forgetful Brits will owe bankers £12
The Royal Bank of Scotland group has announced that customers who forget to inform its credit card providers when they have moved home will incur a £12 penalty fee.The new rule will affect card holders at NatWest and Mint as well as the Royal Bank of Scotland from May 1st this year and will apply as soon as the bank has received two returned statements. .Since the Office of Fair Trading (OFT) rul...Read More
Bank governor signals rate hold
The Bank of England seems unlikely to raise rates, following comments made to MPs by its governor.Addressing the Treasury Select Committee yesterday, Mervyn King said that it was a priority for the Bank not to exacerbate the UK's current economic slowdown - a situation that might be worsened by any increase in the base rate of interest.Analysts have speculated that the Bank might make the move due...Read More
JJB sports to hand dossiers to FSA
JJB Sports directors will this week hand a dossier to the FSA (Financial Services Authority) citing evidence of various untrue allegations made against chairman Sir David Jones. The company believes that this is tantamount to "market abuse" and it could soon turn into a criminal investigation into what has been apparently an ongoing campaign.
Aside from the fact the company is on th...
Will top bankers defect from the UK?
While Alistair Darling will today be appreciating the adulation of yesterday's announcement of an agreement between the U.K.'s top five banks to control remuneration and bonuses in the future, there is a feeling there could be a certain sting in the tail with regards to this story. There is even some debate as to whether the informal agreement between the government and the UK banking sector will...Read More
Is the worst yet to come for the UK economy?
With more than 140,000 companies in the UK falling into financial trouble in the final quarter of 2009 there is a stark warning today that the worst of the UK economic downturn may be yet to come. While that is not to say that the UK economy is not starting to recover, the aftermath of what has been the worst economic downturn since the 1920s has still not hit home in many areas of the UK economy....Read More