- Why Banks are not lending. Why lower interest rates are not encouraging people to spend.
- Outlook for Euro looks testing as the Eurozone faces most serious downturn since inauguration of Euro
- Obama faces difficulty of balancing US budget - Higher taxes and lower spending don't garner support, but, only difficult choices will enable US borrowing to come under control (and assuming the economy actually recovers soon.)
- nationalisation of the banks in America look increasingly likely. As Paul Krugman points out, if the Government bailout banks, do they not deserve something in return? Would the private sector pour money into a company without gaining ownership?
- In the UK, RPI inflation fell to 0.1%. RPI includes mortgage interest payments so has fallen much more sharply than CPI inflation which excludes mortgage interest payments. See: difference between RPI, RPIX and CPI.
- Northern Rock has been told to lend more mortgages. When Northern Rock stopped new mortgages, the UK mortgage industry suffered
Tuesday, February 24, 2009
Difficult Times for Economy
Posted by Tejvan Pettinger at 8:19 AM