hopinet

Money, Money, Money

23rd January 2009

Over the last few months the state of the UK economy has come under much scrutiny, today sees the news that we are officially in recession, after the economy shrank by 1.5% in the last quarter of 2008. This has almost been presented as good news by the news companies, they’ve said it quite proudly today.

Anyone who has worked on the high street for the past year has know things had been slowing down, the bank problems have tipped things further and have just brought about a crisis in confidence in the economy and so this in turn stops people spending and so the economy slows down further. Are things as bad as the news keep on saying? I don’t know I’m no financial expert.

What I do know is:
- It’s not just the UK’s economy in trouble, the world’s economy has slowed.
- If the TV and Newspapers keep on about the bad financial status the country is in it will slow the economy further, have they talked us in to a recession? Well I don’t think they’ve helped.
- As we know the banks have also had their part to play in the current situation, too much easily available credit to people who can’t afford it.

How can we get out of the current situation?
If we have more confidence in mortgages, loans, etc and if business are given more support from the banks then businesses will feel more secure, the public will also feel more secure and people will start spending again, this will in turn help businesses even further. As I say I’m no finance expert but surely this would help.