UK economy downturn 'frightening'

[zesto]

I hope it is only a shallow recession with a fast recovery and that it does not get to the point of having to print money, although all the signs indicate otherwise.
I still can't believe some people are actually leaving their jobs here and moving over to the UK at a time like this.

Business leaders have painted a bleak picture of the UK economy, with a survey suggesting a "frightening deterioration" towards the end of 2008.

The British Chambers of Commerce (BCC) said its survey results were "awful" and the worst since it began in 1989.

Elsewhere, a separate report suggested it had been the worst December for UK retail sales in at least 14 years.

On 23 January, official figures are set to confirm the UK is in recession with six months of negative growth.

Mr Kern said more rate cuts were likely, but that the authorities would have to go further to avoid a prolonged depression, including printing more money.

"The MPC is running out of conventional bullets," he added.

Link

 

[Alan]

New Labour

No more boom and bust they said lol

 

[Mephisto_Helix]

Man, imagine how god-awful it's going to be when it hits here .......

 

[zesto]

Reduced spending in the developed world is not a good thing for us and the rest of the developing world.
House prices will continue drop here as the supply outstrips the demand. The banks are already getting so stringent with the criteria for home loans and the percentages that they give.

I still don't think the situation will be as bad as what it is in the UK, the NCA and massive infrastructure investment being two reasons for that.

 

[krycor]

I still don't think the situation will be as bad as what it is in the UK, the NCA and massive infrastructure investment being two reasons for that.

Me too.. I think the opposite will happen in some sectors in fact not just here. The 2010 WC seems to be in someways saving Sa quite a bit

 

[DJ...]

Man, imagine how god-awful it's going to be when it hits here .......

It's not a virus. We're a very different economy to the UK and they're feeling the after-affects of major exposure to the sub-prime crisis - something we never really had to worry about, nor do we have to moving forward. In some ways, being a 3rd world economy saved us from the schit-storm. We suffered last year due to rising inflation issues, somewhat borne out of the global financial crisis, however that was just one aspect of it. Inflation is easing off, however as I alluded to in my previous blog, I fear the global inflationary impact of the bailout itself. Injecting non-existent cash (at least a trillion USD) into an economy while simultaneously dropping interest rates to record low levels is imo just asking for inflation troubles...

 

[supersunbird]

The companies are doing it to themselves. You fire your worker, now he cannot buy stuff from company B. Company B doesn't have enough people buying their products anymore, because the ones that were buying it have been fired. Now company B fires some of their workers or close down. Now company Bs and all the other fired people are not buying your companies products so you fire more people or have to close down. And on and on it goes till we are all in the dogbox...

 

[Kim_Webchick]

Shame the UK is having a tough time and its only going to get worse

 

[Hosehead]

And Mr Blair goes to Washington to collect his Medal of Freedom Plus his Medal of Honour (Gold) The Mess began with him.

 

[werner]

here is a map
http://maps.google.com/maps/ms?ie=U...52.683043,-1.494141&spn=9.396916,18.69873&z=6
pushpins showing job losses.
click on them for text.

 

[genetic]

The situation in the UK isn't going to improve anytime soon. The British Pound is collapsing. The country has already decided to move to a competitive devaluation.

The GBP is based more upon financial services than in its manufacturing capacity (which has virtually been lost over the past few decades) and with the collapse of the financial sector, This only means an increase in inflation and an increase in public debt. As if more public debt could solve a crises triggered by public debt! The country is in for a long and deep recession.