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!
European Investment Bank approves $1.2 billion car industry loans
In a move which has been presented under the auspices of a green revolution in the European car industry, over $1.2 billion in loans have been cleared for EU car manufacturers. With the proviso that the funds are used to cut CO2 emissions and release cleaner cars to the car market, many car manufacturers will be relieved to say the least.
The likes of Nissan, Volkswagen and Jaguar L...
Is this the end of the free market?
Many experts believe that the events of the last 18 months could herald the end of the free market in the UK finance sector. Never before has one sector been proven to be so instrumental in the direction of an economy as the UK financial sector over the last few months. No future government in UK can really afford to give one area of the UK economy so much power and we could see the end of the fre...Read More
Are EU members as close as many seem to think?
The ongoing strikes in UK, with regards to an Italian company working in UK which is alleged to have barred the UK workers from applying for positions, could have a serious impact across the EU. The Italian company in question has today confirmed that 100 UK workers are currently employed on a project in Venice where they are working side-by-side with Italian workers. However, the issue does not s...Read More
How Did It Go So Wrong For The UK Economy?
The Alistair Darling interview with the Guardian newspaper has 'let the cat out of the bag' in the words of Shadow Chancellor George Osborne. After months of refuting suggestions that the economy was on its knees and sinking it seems that the government - or at least Alistair Darling - has come around to this way of thinking. The signs are there, the pressure is building and this sheds a whole n...Read More
Is the UK really headed for a double dip recession?
Towards the end of 2009 it seemed as though the UK economy was on the verge of a sustainable recovery which could potentially save the Labour government from defeat at the next election. However, over the last few weeks the situation has deteriorated somewhat and there are grave fears of a double dip recession in the UK which would effectively undo all of the good work done by Gordon Brown over th...Read More