Who is next on the credit ratings money go round?
Amid suggestions that the UK and US national credit ratings could be cut in the short to medium term many observers are now looking elsewhere to see who the next victims could be. While Spain has already had the misfortune of seeing the country's national credit rating reduced it seems almost certain that others will follow in due course.
As we have seen in UK banking sector, rumours and untruths can cause significant problems and there are serious concerns that this information vacuum regarding other countries will prove something of a godsend to more unscrupulous traders. With the European Central Bank already under significant pressure many people are worried that further downgrades around the world, which could include some of the more established and new entrants to the EU, appear almost inevitable.
A round of significant credit downgrades could have a serious impact upon the many rescue packages being implemented by governments around the world. While many have already loaned billions upon billions of pounds, a reduction in their credit ratings will see more expense added to future fundraisings and ultimately extend the length of the current recession. After a period when it appeared that the UK, and other economies around the world, was starting to stabilise it now looks as though we could be in for a very bumpy ride over the next few months.
Share this..
Related stories
MPC appears split on extension of quantitative easing programme
The Bank of England MPC (Monetary Policy Committee) appears to be split on the subject of quantitative easing and a potential extension of the ongoing program. Last month's meeting appeared to give a rather upbeat view of the UK economy and the future success of the quantitative easing programme, although the last few days have seen this upbeat stance start to show cracks.
Interesti...
Do budget cuts really impact low-income families the most?
While in many ways the coalition government is damned if it does and damned if it isn't with regards to taxation and budget cuts, there is growing concern that budget cuts already announced have impacted upon low-income families far more than those on higher incomes. In monetary terms the difference in income for those in low-income households may be only a fraction of those on higher incomes, but...
Read MoreIs The UK Holiday Sector Showing The Strain?
The Civil Aviation Authority has confirmed what many were starting to fear, that the holiday sector in the UK is going through one of the worst periods of recent times. Figures released this week show that a total of 25 firms went under during the year up to end March 2008 but it looks as though things could get worse before they get better. So is your money safe? Will you still get your holiday...
Read MoreLive in a nice area and get a smaller pension!
In a move which smacks of yet another tax on the rich it has been announced that Norwich Union will be the latest insurance giant to introduce a postcode lottery for pensioners. While they claim that 70% of the population will remain on the same pension or actually see a rise in their income, 30% will be worse off. Norwich Union will be paying out smaller pensions to those who live in more affl...
Read MoreGordon Is Here To Save The Day
Despite possibly the worst month since he began his spell in office, the Prime Minister Gordon Brown has today re-iterated his view that he is the man to lead the UK economy. He believes that his knowledge of world markets, of economic cycles and the corporate sector ensures that he can steer the UK economy through these choppy waters. Gordon Brown has come in for some serious criticism from n...
Read More