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!
Irish budget deficit largest in European Union
It has been revealed that the Irish budget deficit last year was the largest in the European Union standing at 14.3% of gross domestic product. While the initial figure of 11.8% was revised higher due to a change in the treatment of the EUR4 billion aid given to Anglo Irish Bank, there is no doubt that the finances of Ireland are in a mess. Despite the fact that Ireland has a larger budget defi...Read More
Mortgages force families to cut back on saving
British families are feeling the pinch and are now less financially comfortable than they were last year, according to Alliance & Leicester's latest financial thermometer.The thermometer calculates that most families are doing 'poorly' financially, compared to July last year, when it showed that the majority were 'fighting fit' when it came to money.Families are having to reign in their borrowing...Read More
Is the UK car manufacturing industry on the brink of collapse?
Amid claims that one of the U.K.'s largest car manufacturing plants is on the verge of collapse, the Unite union has today stepped in to try and pressurise the UK government into forwarding a life-saving rescue package. While the union has refused to name the plant at risk it has confirmed that upwards of 6000 jobs are potentially at risk. This is a direct consequence of the collapse in the UK car...Read More
FSA calls for curb on banking bonuses
Lord Turner, chairman of the FSA (Financial Services Authority), last night called for further curbs on banking bonuses ahead of the forthcoming G20 summer. After a relatively quiet period for Lord Turner, after his ill-advised comments regarding the UK banking industry, it seems as though the UK government and the UK regulator are back on the scene and looking for blood!
Crude oil price falls but petrol fails to follow
The price of oil has fallen below $60 a barrel today amid concerns about the state of the worldwide economy and the potential for a further setback in the short to medium term. While many believe that the short-term speculators, who had been blamed for the recent spike in the price of oil, have now left the market for the time being, there is still significant concern as to why the price of petrol...Read More