Shocking

The fact that the UK was still in recession in 3Q is quite shocking. Most surveys have been pointing to a weak recovery. The problem in the UK is that too many households and businesses have relied on credit. The UK was an easy market for foreign banks to do business in. The Icelandic and Irish banks were particularly active and now they’ve gone. The domestic UK banks are generally not in a position to take the slack. Hence, the UK is struggling to get out of recession.

There is a small silver lining as the rest of the world recovering before the UK gives us a chance of reducing our trade deficit and rebalancing our economy. However, it’s going to be a long tough haul. Having boasted about presiding over the longest economic expansion in the history of the UK, it would be nice to think that Gordon Brown might apologise to the nation for presiding over the longest recession this country has ever suffered. I’m not holding my breath, though.

It’s no use GB blathering on about a global recession being the problem. Sure, it’s not helped, but he made it worse by giving the UK a structural public sector deficit before the recession and foisting the financial sector with a disastrous regulatory mess. Nice one Gordon.

 

GBHeadInSand

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2 thoughts on “Shocking”

  1. I am not going to hold my breath for a Gordon brown apology either….
    The reason for our particular recession is greed, pure and simple

  2. Our economy(output) is now less than Italy’s. Soon to drop below Albania’s. Don’t expect it to recover any time soon as manufacting has been hammered(my sector) – Brown can’t kick his spending addiction – no-one will be able to trim our bloated public sector. No-one has the courage too. We will have to rely on the spending power of those in the PS to create demand but they are all debt ridden. Were all dOOOOMED Mr Mannering Doooomed I tell you.
    Thank God hiking,wildcamping in our glorious mountains costs virtually nothing.
    John

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