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!
Will we ever see the massive financial conglomerates of the past again?
As the UK government and the UK regulators attempt to dismantle the massive financial machines which now operate in the UK, by trimming back on risk-taking and increasing the need for liquidity and asset backing, there are fears we will never see the financial giants of the past ever again. However, it is common knowledge that in every recession and every downturn there are periods of reflection a...Read More
The great pension divide
It has been revealed that public sector pension funding requirements will approach £4 billion a year over the next few years. While the ordinary worker in the private sector struggles with funding for the future, final salary schemes are now commonplace in the public sector. There is great concern that a divide is appearing in the UK whereby taxpayers are being saddled with massive future debts t...Read More
Do the government actually know what they are doing?
The frightening allegations with regards to a whistleblower at HBOS and Sir James Crosby have caused serious damage to the UK authorities and put a question mark over the structure and thinking behind the ongoing UK banking rescue packages. While we suggested in some of our earlier post that the Treasury select committee may well reveal certain factors and rumours which would embarrass the governm...Read More
European leaders announce increased funding for IMF
In a sign of the times European leaders gathered in Berlin have tonight issued a statement suggesting that an extra $500 billion will be made available to the International Monetary Fund (IMF) in a bid to refloat a number of ailing European economies. While the likes of the UK, Germany and France for example are going through a very difficult period, many of the newer members of the EU such as the...Read More
Wake up and smell the coffee
Coffee chain Coffee Republic has today been forced to call in joint receivers after a review of the business proved ultimately unsuccessful in finding a way out of the current financial situation. The company had been looking to renegotiate a number of rental arrangements with regards to a number of outlets but this appears to have fallen on deaf ears.
The company is simply a victim...