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!
Olympic ‘Distraction’ causes House Price Drop
Sellers of properties within the UK slashed house prices in the month of August, due to the Olympic Games causing a distraction to buyers, along with the faltering economy within the UK to blame too. Data from Rightmove Plc indicates that asking prices in England and Wales fell by an average of 2.4pc as sellers battled against lack of attention from buyers. London alone saw values of housi...Read More
UK base rates to remain at 0.5%
Ernst & Young recently issued a report in which it forecast that UK base rates would remain at 0.5% for one and a half years, and the UK recession could potentially last longer than many people think. The well respected economic think tank also believes there is a significant danger of a double dip recession during which high hopes for a quick rebound are foiled and the economy moves back into a d...Read More
What next for the UK after confirmation of recession?
For many months analyst have been waiting for today when the UK is officially confirmed as being in a recession (technically confirmed after a reduction in the economy for two consecutive quarters) but the speed of the fall has frightened many. There are serious concerns that the UK economy is effectively in "freefall" and the various government rescue packages and economic stimulus programs are n...Read More
Should We Have Seen The Recession Coming?
If we could go back in time to this time last year when all was going well, house prices were on the up, stock markets were doing well and employment was on the rise, should we have seen the signs of a slowdown?
Many people have been scratching their heads and looking back to the summer of 2007 and the problems which stemmed from the US credit crunch. Were the signs there? Should w...
Could Gordon Brown call a snap election?
While yesterday's announcement that the UK has officially moved out of recession was welcomed across the board, the disappointing growth of 0.1% was far less than analysts expectations of 0.4%. There is also a possibility that the figure could be downgraded in the short term as this initial figure is only the first estimate from the Office for National Statistics. There is growing speculation that...Read More