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!
UK landlords turn positive on future
The UK buy to let market is apparently bottoming out if UK landlords are to believed, with a forecast that portfolios will rise by an average of 0.8% over the next 12 months. This is a significant movement when you bear in mind that property prices have been falling for the last two years and rental income has also been decreasing for the last 12 months or so. So what is happening at the moment?
Is the stock market as risky as people suggest?
The last 24 months have seen a rollercoaster ride in the UK, and worldwide, stock market with billions upon billions of pounds lost but many people making significant profits in the short term. While there is no doubt there are short, medium and long-term risks to investing in any stock market in the world, is it sensible to avoid stock market investment?
The truth is that any inves...
How do the interest rates in the financial sector compare to base rates?
With UK business base rates at 0.5%, and likely to stay there for the foreseeable future, now would seem like a perfect opportunity to compare interest rates across the financial sector against UK base rates. So who is benefiting from reduced base rates?
In the mortgage sector, the situation with regards to two-year and three-year mortgage rates shows that there is currently a margi...
Is the government doing enough for small businesses?
One area of concern for UK businesses is the lack of funding for small to medium-sized enterprises in the UK which is forcing many previously strong operations to cease trading. Despite the previous government placing significant pressure upon the banking industry to increase liquidity and funding for small to medium-sized businesses there is very little sign of this occurring as yet. So what can...Read More
Is inflation a threat to the UK recovery?
This week sees a number of vital economic statistics in the UK with concerns that the rate of inflation is set to spike upwards in the early part of 2010. Recent figures have shown an increase in the cost of raw materials, much of which came from the upward movement in the price of oil, which will have an impact upon inflation. So what else do we need to monitor in the short term? There is also...Read More