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!
Are regulators talking the talk but not walking the walk?
The mammoth £10 million numeration package which has been placed before the Royal Bank of Scotland board of directors with regards to chief executive Stephen Hester has attracted the wrath of UK taxpayers and investors alike. The UK government and regulators have been very proactive in trying to reduce the number of lucrative remuneration packages in the sector after the demise of many UK banks o...Read More
EU regulators question British Airways tie-up
The three-way tie-up between British Airways, American Airlines and Iberia has today been cast into doubt with the European commission set to look into potential competition issues. At a time when the airline industry is literally bleeding money, any further delays in the proposed tie-up could well push one or more of the three companies into further financial trouble.
It is no secr...
Renewed rise in inflation puts pressure on savings
News this week that inflation has picked up to 1.5% from 1.1% has been broadly welcomed by analysts and researchers because ultimately it means in the short term that the UK economy is showing signs of life. However, putting aside the potential problem of increased inflation, there is also concern for those with significant savings in the UK who are currently attracting minimal interest rates....Read More
Is it time to link the state pension to earnings again?
As we approach the centenary of the state pension in the UK union leaders are this morning calling for the restoration of a link between pensions and earnings. This link was taken there many years ago as a means of reducing the liability of the state as earnings continued to rise during the 70s and 80s. There have been a number of calls to put the link back in place which would see pension payment...Read More
Court trials could be hit by striking barristers
News that barristers throughout the UK have rejected a move to fix their payments to £91 an hour has put the UK on the brink of a serious problem. While the Ministry of Justice claims that no trials have been hit by the breakdown in talks, the Criminal Bar Association is suggesting that a number of high profile cases have already been hit, with more to follow unless the dispute is resolved.