Mervyn King, the Bank of England’s Governor, has warned that the British economy faces recession. According to Mr King, households are facing a protracted spending crunch as food and fuel bills continued to increase. He added that financial strains would intensify the sharp economic downturn already taking hold and ruin chances for steep interest rate [...]
I think that we could be comming into harder times than first thought. Whilst the US seems to be shrugging off the credit crisis we seem to be lining up to take it smack in the face.
People who have put something away for a rainy day will be very greatful, as it sure is gonna tip it down.
Actually, the US isn't really shrugging off the credit crises - they just seem to be ignoring it!
The US property and mortgage markets are falling further and further - those write-downs on mortgage CDO's are likely to continue well into next year while defaulting on mortgage payments continues to rise.
The plato of real estate sales is occuring globally. In the past few years this sector has been experiencing a boom and of course various sectors have there highs and lows due to the laws of economics. People demand so much that the prices increase drastically and then as the demand lowers we find properties staying on the market for longer than we imagine and of course with no owners and high land tax and property taxes the owners have no choice but to sell them cheaper or the bank just steps in and reclaims the properties due to the morgagee's unability to pay. When the banks do this they now have to sort out the payments that were outstanding, hence the reason why mortgages rise. Now should be a a good time for those who can afford it to buy properties. Save in the boom so when the recession hits we can purchase and then gain from it in the next boom. It's all in the timing...
CAMBIR -
Clients Advisory Executive
Clico (Trinidad)
Recession could be looming warns BoE Governor
