money News
The squabbling has to stop and action has to be taken
We doubt whether people have failed to notice that last week was full of news, regarding America and its debt crisis contributing towards the alarming fall on the FTSE last week.
News that £169 billion was reported to have been lost on the FTSE sounds like just another number to most of us, but unless we understand the consequences then it is hard to understand how this is going to affect us in this country either now or in the future.
Quite simply if the value of the FTSE falls – this means that the value of money which has been invested for our pensions has reduced and when a ‘crisis’ or as some stock market gurus have said a “blip” occurs this also effects the chance for growth for our economy as confidence in investment naturally reduces.
David Cameron has demanded that euro countries sort out the mess straight away as £169 billion was wiped of the value of our top firms last week.
The crash was the second biggest in our life time – the first being when Lehman brothers collapsed in September 2008, they collapsed and filed for bankruptcy this caused the stock markets all over the world to hit their lowest points thus causing panic worldwide.
One of the questions which a worry to us all at the moment is “does anybody in power or within the financial markets knows what to do?” Seemingly no one is really sure and now with the United States having its credit rating reduced means that borrowing is going to be more expensive and the downgrading of the American credit statuses could spread to other countries throughout the world.
The reaction and messages from those in power has David Cameron coming back early from holiday to see if he can sort out what to do? Then we have President Obama is telling people that a recovery is around the corner and Gordon Brown has now blamed for the Euro Zone, are you confused? Perhaps like us all just a bit……!
The squabbling is getting worse - as know the members of our political parties in the UK are saying that they do not go on holidays having to come back home early or otherwise to sort out the problems we are all facing. Is anyone coming back to England early really going to make a difference at this present moment, as the crisis is global and it is not just the UK that is in a big financial mess?
The Banks are also under attack again, and they are under pressure to start lending again to try and help sort out the mess at the moment. But what are the chances really on them taking risks in helping in developing businesses? On the flip side the question could be do they have a choice as alternatives are fast running out.
The next 2 weeks are going to be pivotal and let’s be honest it isn’t going to be very productive playing the blame game, action needs to be taken before it’s too late and Recession 2 (sounds a bit like a movie blockbuster) hits us hard.
America is affecting the whole world economy and the euro is under threat which it has been over the last 3 years due to financial pressures from its members, but this could be the last chance for the people in power and in the financial organisations to help us dig out of this impending hole.
Let’s hope it ends happily or with a glimmer of hope just like a movie and not the start of Recession 2!!!!!