US market may need new bailout!
It has been revealed by no less than Ben Bernanke, chairman of the US Federal Reserve, that the current US rescue plan on the table may not be enough to pull the economy out of a period of sustained negative growth. It is not the pace of the slowdown which is alarming analysts, more the strength and depth of the slowdown which is hitting all areas of the economy.
It has been suggested that another $150 billion of aid could be voted through by Congress, on top of the $750 billion already in the pipeline. However, this new tranche of money would actually go to the people who are struggling most in the shape of food stamps and financial assistance to ensure less people are thrown out onto the streets over the coming weeks and months.
The US record to date with regard to repossessions is not good with more than 2 million homes already back under the control of the mortgage companies and ever expanding tent cities popping up all across America. It is staggering to think that we are actually seeing whole families thrown out on to the street as literally billion of dollars appears from no where to help the big financials.
Share this..
Related stories
Yorkshire and Chelsea building societies in merger talks
It is believed, unofficially, that the Yorkshire building society and the Chelsea building society are in talks about a merger which would create a group to compete with the Nationwide building society. The two societies in question currently stand as the second and fifth largest in the UK and their amalgamation would bring together a group with the capital and the strength to take on the Nationwi...
Read MoreThe Bank of England maintain base rates at 0.5%
The Bank of England has maintained UK base rates at 0.5% at today's Monetary Policy Committee meeting (MPC). There has also been no change in the £200 billion quantitative easing program as many experts had predicted. So what next for the UK economy? The fact that base rates remain at record lows is obviously a sign of concern in the short to medium term although the fact that the quantitative...
Read MoreLabour Party split over class war
The Labour Party is apparently split over plans by Gordon Brown to introduce a class war into the forthcoming election campaign and try to divert attention from the Tory party as a party for the people. Many people believe this particular strategy is a last stand for Gordon Brown and is potentially high-risk but also potentially high reward. So why is the Labour Party split? The truth is that t...
Read MoreUK government puts aside £388 million for housing projects
The UK government has today confirmed that £388 million has been put aside to provide funding to 115 private sector housing projects in England. The "Kickstart scheme" has begun with a £62 million payment to an array of private sector developers who had been caught short by the recession and were forced to mothball some of their developments. So what does this mean for the industry?
Read More
General Motors set to step back into GM Europe saga
The ongoing row between the UK government, German authorities and other investors in the GM Europe operation looks set to spill over into next week and beyond and is apparently putting the acquisition by Magna group at risk. This is a situation which has now been ongoing for a couple of months but one which many believed had been resolved more than four weeks ago.
Today General Moto...