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!
Do we really need debt?
While the subject of record debt levels in the UK continues to monopolise many financial headlines, we appear to be overlooking the fact that debt is what actually drives an economy forward although there needs to be sensible use of borrowings at all times. The problem we are seeing at the moment derives from the fact that for the last few years at least, debt in the UK has been very cheap and aff...Read More
Does size matter in the UK retail sector?
With news that JD Sports may potentially look to merge with JJB Sports, many are starting to ask whether size matters on the UK high street in an attempt to secure safety in the medium to longer term. There seems to be a general misconception that it is only the smaller companies which are suffering when we have seen the likes of MFI, Woolworths and other major players in the UK high-street inform...Read More
London house prices rebound strongly
Prominent property website Rightmove has today confirmed that London property prices, at least in some areas, have returned to the peaks of 2007 despite the fact that the UK economy is still under pressure. While this is good news in the longer term, many people believe the move has come too soon and could cause confusion and mayhem in the short to medium term.
As more and more prop...
Will Inflation Hit 5% By The End Of September?
As officials get ready to release inflation data for July this week, many experts are forecasting a rise to 4.1% from 3.8% in June. However, while this is bad news in itself it seems inevitable that it will get much worse in the short term. Many economists are looking to inflation to rise above 5% in September as the increase in energy bills only just starts to hit home. This will not only prom...Read More
US authorities desperate to support the dollar
Ben Bernanke, the Federal Reserve chairman, has this evening thrown his support behind the US currency in a rare vote of confidence from the Federal Reserve. The US government appears desperate to support the greenback which has now fallen to a 15 month low on the currency exchanges and is under constant pressure. While would expect the Federal Reserve to comment upon the currency at regular inter...Read More