Tuesday, 10 February 2009

How Bad Could It Really Be?

When the governments own regulatory watchdog predicts that our economic slump might be worse than feared you know things are going to get really bad.

The Financial Services Authority warned today that Britain's recession could go deeper and last longer than expected, despite the government's fiscal stimulus and multi-billion pound economic rescue plans. Possibly more telling they say, about their own bosses, the impact of measures like reduced interest rates and the government's £12billion VAT cut remained unclear, and advise businesses and consumers to "plan for a greater degree of uncertainty than normal".

If this is the assessment of our own FSA you can only wonder what the OECD, IMF and World Bank are thinking. My greatest fear is that Labour are ignoring any economic forecasts they don't want to admit to favouring a scorched earth policy designed to leave the next government with nothing to work with. The only good news is that I am in doubt the energy, ingenuity and dedication of the British people will see us through to a prosperous future despite the actions of the current government!

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