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!
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...
Japanese economy faces the challenge of deflation
The Japanese economy is today facing the challenge of deflation which has dogged the country a couple of times over the last 20 years. The massive recession in the 1980s took many years to overcome and indeed the stock market has never reached the highs of the 1980s even 20 years on. The news of deflation in the Japanese economy is possibly a worst case scenario which will see prices come under pr...Read More
No Explanation Bank Account Closures ‘Unjust’
Banks that close customers’ accounts without explanation have been said to be acting against the natural rules of justice, according to the chairman of the Financial Services Authority’s Consumer Panel, Adam Phillips. However banks currently close customers’ accounts and refuse to provide an explanation upon doing so, in order to follow anti-money laundering laws. The issue was first h...Read More
Alistair Darling cuts rise in business tax
In a move which has been welcomed across the business arena Alistair Darling has today confirmed that the expected 5% increase in business tax rates will be reduced to 2% this year with the remaining 3% spread over the next two years. However, while the reduction in the rise (which has been prompted by a significant fall in inflation) has not quelled the anger felt by many business leaders.
Consumer Confidence Hits Rock Bottom
The Nationwide Consumer Confidence Index has hit a new low of 61, falling from 65 last month and 93 only 12 months ago. It seems as though more and more consumers are negative about the prospects for the UK economy over the next 12 months, with more than half suggesting that the situation will get much worse before it gets better. But is there any good news on the horizon?