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!
No Decision Yet On Borrowing Rules - Alistair Darling
In line with the government's recent strategy of late, the newspapers have been full of stories about an impending change in the fiscal rules which were core to Gordon Brown's time at the Treasury. The rules were introduced for future Labour government's as Mr Brown boasted that he had cracked the traditional boom and bust economic cycle and was in better control of the economy than anyone from t...Read More
UK authorities turn-up the heat on banking bonuses again
The UK government has today gone on the offensive with regards to banking bonuses and banking remuneration packages, hot on the heels of last week's disastrous GDP figures. In an obvious attempt to deflect the growing criticism of the way the UK government has handled the recession, the tables are again being turned on the banking sector and bankers are being painted as "the devil incarnate".
UK rail network in disarray
The UK government will this evening take control of the East Coast mainline after former franchise holder National Express failed to balance the books. This is the second such franchise which National Express has been forced to hand back to the government and puts the UK rail network back in the spotlight.
Many people believed that the initial carve-up of the national rail network a...
Brits face inheritance tax shock
An increasing number of Brits are ignoring advice to protect themselves against inheritance tax (IHT) - and could face a bill that will shock them in the event of the death of a loved one as a result. Research conducted by ICM on behalf of Bradford & Bingley found that almost two thirds of Britons (61 per cent) have not taken advice on how to minimise the amount of IHT they will be liable to pay,...Read More
Sacked workers continue protest
It has been confirmed this morning that 600 workers at the Lindsey Oil Refinery in Lincolnshire have lost their jobs, which is less than the 900 apparently confirmed yesterday. However, what began as a dispute over 51 workers sacked via a UK based contractor now threatens to blow-up into a nationwide dispute and a battle of wits between the unions and the UK government. Despite the fact that the i...Read More