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!
Businesses Expect Recession to Continue
A poll from members of the Institute of Directors (IoD) has revealed that the majority of British businesses expect the recession to continue for the rest of the year, into 2013. This demonstrates the low confidence that UK businesses have in the economy, and should act as a wakeup call for the Government, who should be doing more to restore this confidence, according to the IoD. The poll,...Read More
Has the Greek rescue package hit the buffers?
Speculators in the currency markets have targeted the euro amid concerns that the expected rescue package for the Greek economy may well have hit trouble. Despite growing concerns expressed by Europe's larger banks it seems as though the European Union is unable to reveal details of any package at this moment in time. Should we be concerned or should we await further details? While rumour and c...Read More
Could problems in the Eurozone hamper the UK economic recovery?
While officially the UK economy moved out of recession in the final quarter of 2009 there are concerns as to whether the 0.1% increase in economic activity will be downgraded in the short term. On the back of this we now have significant issues within the Eurozone with the Greek economic collapse set to spread to areas such as Spain, Portugal and possibly elsewhere. There is growing concern that w...Read More
Vauxhall jobs to go at Luton plant
While the Vauxhall plant at Ellesmere Port has been grabbing the headlines of late with relief that the 2500 jobs in the region are safe, there was bad news for the Vauxhall Luton plant today with the announcement of 350 job losses. GM Europe is currently in negotiations with workers and unions and it is hoped that the job losses will be fulfilled via voluntary redundancy amongst the 1500 workforc...Read More
Citigroup Announces Job Cuts
In a move which was not totally unexpected it has been announced that US based Citigroup will be closing its Future Mortgages and CitiFinancial divisions in a move to cut the massive losses which the company experienced in the sub-prime market collapse. The divisions will be closed with the loss of approximately 600 jobs with little likelihood of relocation to other parts of the Group. It seem...Read More