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!
Why is the UK property sector racing ahead in London?
The UK property sector would appear to have recovered in general but the London market is already back to pre-recession levels after such a short space of time. Despite the fact that the financial climate in the UK is still very much overcast it would appear that homebuyers are prepared to "bid up" for properties in and around the London area. So can this continue?
The truth is that...
FSA concerned about jump in Sainsbury's share price
The Financial Services Authority (FSA) is this evening investigating trading in Sainsbury's shares ahead of rumours that the Qatar Investment Authority (QIA) may be on the verge of increasing its 26% stake in the operation and may in fact have approached management with regards to a potential bid. The silence from Sainsbury's itself has been deafening although the fact that the FSA has become invo...Read More
OPEC sees no reason for meeting
Despite the fact that US crude oil touched $82 a barrel last week OPEC has no plans to meet until the price hits at least $100 a barrel. There is renewed optimism in the energy markets because of an expected recovery in the US economy and the possibility of an increase in oil usage in the weeks and months ahead. However, the fact that OPEC has no plans to meet at the moment and would not even cons...Read More
March House Price Falls Steepest On Record
While the government and the Council of UK Mortgage Lenders argue over who is to blame and what needs to be done to protect the property market from the credit crunch, a damning report has been released by the Royal Institute of Chartered Surveyors. The report shows that almost 4 out of 5 estate agents saw a fall in sale prices in March which is the steepest fall since records began over 30 years...Read More
Will the increase in UK economic activity be short lived?
It seems every day there are differing opinions, differing reports and differing surveys on the UK economy. One day the impression is that the UK economy is improving while the next day it seems as though the economy is back to square one. However, a simple look at the facts and figures regarding the UK economy does not on the whole make good reading.
There have been signs of improv...