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!
US unemployment hits 7.2%
News that over 524,000 US jobs were lost in December has pushed the US jobless rate to 7.2% which is a 16 year high. This brings the total number of jobs lost in the US in 2008 to a massive 2.6 million with many analysts expecting further bad news in the short and medium term. It is common knowledge that the US economy is plummeting but there had been hopes of a slowdown in the rate of unemploymen...Read More
BA workforce responds positively to management working request
Workers at British Airways have reacted positively to the management written request for assistance in reducing the airline's cost base. Originally Willie Walsh, the chief executive of British Airways, had asked up to 40,000 workers to give their services free for one month in an attempt to try and get the company back on track. However it has been revealed today that while many workers have volun...Read More
Fears arise over pension mis-selling
12/02/2015 The pension reforms being introduced in the UK in April will lead to an abundance of mis-selling claims, according to an announcement from Scottish Friendly. Scottish Friendly, a savings and ISA provider, believe large numbers of pensioners will be targeted by salespeople with the only aim to separate them from their life savings. They believe more needs to be done to ensure pens...Read More
What is more important than the financial market White Paper?
As we covered in one of our earlier posts, the UK government has this week delayed yet again the publication of the White Paper on the future regulatory framework of the UK financial markets. Claiming there are two other financial White Papers to be released over the next few days many people cannot believe that these other White Papers have taken precedence over the financial sector. So what exac...Read More
Annuity rates have halved in 15 years
Those looking to retire in the short to medium term in the UK will face a nightmare scenario with news that annuity rates have halved over the last 15 years. This unprecedented fall in annuity rates will have a direct impact upon the lifestyle and the finances of many in the UK who are coming up to retirement over the next few years. So what are the options? Unfortunately the options for many f...Read More