Britain Needs to Protect Itself

Last year the economy in the US began to suffer greatly in relation the subprime loans. The government reacted too slow to stop the progression, and in fact this sort of issue has not been a problem for 25 years when the last recession created a three quarters drop in the interest rates. Even 9/11 didn’t have the detrimental effects as the last year. For those in Britain it seems now is the time to start protecting the economy, if it is not already too late.

The subprime boom and the issues with their structure in the US have caused a collapse of the mortgage market as well as an answering recession. It seems that it is vital for the US to change their current policies regarding mortgages if they have a hope of recovering at all. The emphasis should be moved away from borrowing and consumption in order to promote better savings plans as well as investments. The analysts are trying to get the money back into the economy in a different light in order to help it recover. There is also a distinct issue with the value of the American dollar at the moment. This has caused an unbalanced issue in the Federal budget, and only a little work towards investments and savings are going to help.

It seems that Mr. Bush rushed to fix the issue with a $145 billion stimulus package. This of course did not help the equity markets recover. The interest rate cuts that have been passed are also finding an ineffectual niche in the economy. Those in power in the US are trying to cut the rates as a way of reducing the panic being felt among those in the US. Of course the problem in the US is not the only issue that is going on. There are global effects related to the fall of the market in the US. In fact the Asian stock exchange has been seen rising and falling with instability due to the problems in the US. This further signifies the recession in the US that everyone is talking about may come about. Of course since the other economies are booming it could just be a foolish thought that the recession will really get underway.

Mr. Bush and Ben Bernake have been trying to halt the recession, but it seems they may be too late. With Bernake’s speech a couple of days ago the stock market still did not rally. Of course they are both still trying to propose the emergency rate cuts in order to help the failing mortgages for some, and hopefully this will end the subprime crisis and restore order to the banking world. The news is varied regarding how deep the recession may go.

The effects of the recession on the global market are what have some in Britain concerned. It seems that even though the UK has in large part managed to escape the worst of the subprime issue there are still banks that are having a detrimental effect on the economy.

Back To January 2008 Financial News
Purchasing with Credit Cards
Traps with Credit Cards
Understanding Credit Scoring
What Is A Credit Reference Agency
Testing Your Debt
10 Ways To Save Money
Benefits of Savings
How To Save of Invest Your Money
Individual Savings Accounts
Sainsbury’s Bank Internet Savings Account
Product Types For Savings
Saving with Child Trust Funds
Savings and Investments Advice
Trouble Ahead with Free Banking
Warning: Savings Rate Change
What Makes Consistent Savings Account?
Credit Building Solutions
Britain Needs to Protect Itself
Free Banking or Unfair Bank Charges
Reintroducing Child Savings
How To Get The Most From Reward Credit Cards - Part 1
How To Get The Most From Reward Credit Cards - Part 2
UK Economy Growth
UK Rate Cut
US Recession and Britain