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!
More needed to get the economy moving
Prime Minister David Cameron has recently made claims that the UK is in a better financial position than it was back in 1930. He denied claims that the slump witnessed over 80 years ago was similar to that of now. He said: "We are obviously facing in Europe a difficult set of circumstances that is harming our growth and our prospects and its going to take time to fix. Frankly, Britain needs to...Read More
It is payback time for Tony Blair?
Only a few days ago Tony Blair was the unofficial favourite to take on the as yet undefined post of EU president but this evening he appears to have been the victim of a stitch up and his hopes of grabbing the top spot are fading rapidly. Only this afternoon Gordon Brown confirmed that he had put Tony Blair forward as the UK government's choice for the EU presidency post although this evening Fran...Read More
Thug behaviour hits business costs
Yob behaviour cost UK businesses an average of £5,000 in 2006, more than double the costs of the previous year, according to research by Royal and SunAlliance.A quarter of business owners feel that the introduction of 24-hour drinking has increased the problem of hooligan damage. Despite a reduction in the number of businesses affected from one-third in 2005 to one-fifth in 2006 the survey reveal...Read More
Gordon Brown under pressure to retain Northern Rock
There is mounting pressure for Gordon Brown to retain Northern Rock under government control and convert the company back into a mutual society. Despite the fact that the Treasury and Gordon Brown appear set to split the company and sell off the "good bank" to Virgin Money, many MPs believe now is the time to revert back to a mutual society under government control.
It was also reve...
Why has the EU Commission become so involved in UK banking sector?
After news that the EU Commission will be forcing Royal Bank of Scotland to downsize its operations, reduce its insurance division and treble its exposure to the asset protection scheme, many are now wondering why the EU commission is so heavily involved in the UK banking sector?
The problem is that the UK government, and all other EU members, effectively signed over control and reg...