Saturday, September 27, 2008
Sounds about right!
Indeed, watching the supercharged policy action coming from US policymakers, the question for many here should be "what about us"? The contrast is staggering. UK challenges are arguably just as great, and without any imaginative actions here, the risk of a recession at least as bad as in any of the past 30 years, if not worse, could arise. UK mortgage lending has all but come to a standstill. Just based on this factor alone and its historical track record as a leading indicator, the UK could be entering a year of significant negative domestic demand, causing a large rise in unemployment and much misery.