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!
Johnston Press breaks the mould
Johnston Press has broken away from the general news sector with confirmation that the company will be charging readers for access to various news channels within its local and national titles. The Worksop Guardian, the Ripley & Heanor News and the Northumberland Gazette are part of a pilot scheme to charge readers five pound for a three month subscription or else direct them to buy the newspapers...Read More
Thursday's MPC meeting could be a non-event
Thursday's meeting of the MPC at the Bank of England is likely to be a non-event in relation to UK base rates which seem almost certain to remain at 0.5%. However, as we covered in one of our recent posts there is growing speculation that the UK government will be asked to increase the quantitative easing budget by a further £25 billion as the initial £125 billion ceiling is about to be breached...Read More
Home Repossessions Soar 17% In Last 12 Months
In a move which is very similar to that seen prior to the crash in US sub-prime mortgage market, it has been announced that year on year home repossessions have risen by 17%. This is based upon the number of applications made to the courts by mortgage lenders and it looks set to get worse before it gets better. However, there are many more worrying tones under the surface which will have the Tre...Read More
The Bank of England set to keep rates at 0.5%
The Bank of England monthly meeting for May should be a fairly low-key affair with a suggestion that UK base rates will be maintained at 0.5%. While there are differing groups in the UK looking for a reduction and some looking for an increase in UK base rates it appears that the MPC will be more concerned with quantitative easing in the short to medium term.
The likely decision to m...