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!
House price balance 'worst for 30 years'
More surveyors believe that house prices are falling in the UK than at any time for 30 years, the Royal Institute of Chartered Surveyors (Rics) said today.According to the association, the disparity between negative and positive feeling on prices has dropped to -78.5 over the most recent quarter - a 13 point drop over the previous report.This also represents the single worst result since the surve...Read More
Is inflation making a comeback?
Economic figures this week are set to show that inflation has rebounded from recent lows with concerns it could become a major issue in the medium to longer term. Depending upon which inflationary measure you use, the UK rate of inflation has been negative or just above zero for some time but with UK base rates still at 0.5% there is a feeling that the increase in the price of oil and other elemen...Read More
Is the UK government opening up the banking system to foreign participants?
The UK government's decision to force Lloyds bank and Royal Bank of Scotland to sell significant chunks of their assets and their branch networks could play into the hands of overseas financial companies who have long looked at the UK as a potentially lucrative market. The decision, which was effectively taken out of the hands of the UK government by the EU Commission, will see existing participan...Read More
Nationwide warns on UK housing
After reporting pre-tax profits of £117 million for the six months to 30 September, a fall of 63% on the corresponding period last year, Nationwide has today warned of "inevitable downward pressure" on UK house prices next year. This is a stark warning from a company which is well respected in the UK property sector and would appear have its " finger on the pulse" of the UK housing market. So wha...Read More
Investigation into Flyglobespan collapse
The Scottish government has today announced an investigation into the collapse of Scotland's largest airline company, Flyglobespan. The company collapsed last week after last-minute rescue talks failed and the group had no alternative but to call in the administrators. Over 500 staff lost their jobs at the company and thousands of holidaymakers were left stranded overseas, many of them unprotected...Read More