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!
Sterling falls to new lows
Sterling today reached 98p to the euro in a move which many never believed could ever happen. Not only has the currency flirted with parity against the euro but the fall continues at an alarming pace. This is putting yet more pressure on the UK authorities to join the euro in the short to medium term and ensure that the UK economy is protected as much as possible for the future. Whether converting...Read More
Office of Fair Trading set to hit construction sector
The Office of Fair Trading (OFT) is set to hit the UK construction industry with fines which could total around £200 million. The OFT has been looking into construction company cartels which are alleged to have been involved in the fixing of tenders for construction contracts up to £3 billion in value. However, there is some confusion as to whether there will be legal challenges if these fines a...Read More
JJB parachutes in troubleshooters to reorganise the business
It has been revealed today that Sir David Jones and Peter Williams are set to join troubled sportswear company JJB as the well-known troubleshooters are given the task of reorganising the business. The troubles at JJB have been well documented over the last few weeks as the leisure sector appears to be bearing the brunt of the downturn in the UK economy. Whether these two new recruits will be able...Read More
Lord Alan Sugar learns political speak
Lord Alan Sugar may well be king of the small business arena but he has had to learn a short sharp lesson in political speak after criticising small business owners earlier this week for complaining about a lack of liquidity in the market place. He has issued a statement suggesting that his original comments were taken out of context and he is there to support and help build the small business sec...Read More
Bank of England considering extension of quantitative easing programme
The Bank of England is rumoured to be considering an extension of the quantitative easing programme with various meetings to be held this weekend. Despite the fact that £200 billion has been put to one side for the quantitative easing programme, which effectively allows financial institutions to swap assets for liquidity, it seems as though more money may be required in the short term. This would...Read More