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!
How long will the retail bonanza last?
In spite of forecast that UK retail spending would come under pressure around the festive period and the New Year sales may not be as lucrative as many had hoped, the initial signs are that UK consumers are still shopping in record numbers. Unfortunately this cannot last forever due in the main to the fact that disposable income in the UK is still under pressure and a great number are still concer...Read More
Christmas set to boost UK economy
The festive season could help to shore up the UK economy this year after a rocky few months, it has been claimed.According to Richard Dodd, head of media and campaigns for the British Retail Consortium (BRC), Christmas is arriving at just the right time to help perk up the slowing economy and boost retailers so as to help the overall economy.It has been suggested that this year Christmas will be w...Read More
The twelve saves of Christmas
08/12/2014 According to a recent article, this year Britons intend to spend on average £868 over the festive period, with spending on food, drink and decorations increasing on previous years. However, at the same time, surprisingly people are planning to spend less on presents. The average spend on gifts is expected to be £345.65, although there are some who according to the article, have a...Read More
Fat Cat pay in the City to be curbed
In what seems like a joint effort by the UK and US authorities it seems as though the so called Fat Cat pay model in the City could well be on the way out. While there is very little they can do from a legal standpoint the authorities have chosen to work from within by taking stakes in some of the weaker UK banks and introducing new salary caps as part of the deal.
It is very much...
Bank of America sees bad debt provisions mushroom
In what has turned out to be a sharp injection of reality into markets in the US and the UK, US banking giant Bank of America has announced profits of $4.2 billion in the first quarter of 2009 with a significant increase in bad debt provisions. The company has been forced to put aside $13 billion to cover credit losses causing a substantial pullback in the US financial sector.