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Recession, recession, recession

As each week goes by and each new set of economic statistics hits the headlines, it increasingly looks like the UK is doomed to slide into another recession. The Independent reports that the British economy saw just 0.2 percent growth in the second quarter of 2008 and the financial services sector, which accounts for over a quarter of the UK’s revenues, grew by only 0.1% over the same period. As the article points out, the best we can realistically hope for from the next year or two is a stagnant economy, but even that looks somewhat optimistic. How bad is it going to get? Who knows? For every pundit telling us that things won’t be too rough, there’s...

posted on: Jul 26, 2008 | author: Lance

Who’s wrong, the Bank or the Treasury?...

This article from the Scotsman highlights the difference of opinion between the Bank of England and the Treasury on what we can expect from the economy over the next year. The Bank, which is (at least in theory) independent from the goverment, claims economic growth will slow to 1.5% for 2009, while the Treasury says we can expect anywhere between 2.25% and 2.75% for the same period. More proof, as if it were ever needed, that the people who are supposed be in control of the economy have no more insight than the rest of us when it comes to figuring out what the future holds. You’d imagine the Bank and the Treasury would have access to all...

posted on: May 24, 2008 | author: Lance