16 October 2008
Despite trillions of pounds being pumped into the banking system worldwide, many international exchanges including FTSE 100, the Dow Jones in New York & the Nikkei in Tokyo have yet to respond in the way hoped, with many initial gains having been wiped out.
Part of the problem seems to stem from worldwide government figures showing major drops in consumer spending with many countries now acknowledging recession as inevitable. Manufacturers & services industries are now beginning the painful steps of major redundancies within their workforce as the low demand for their products hit home.
When this is added to massive government overspend & borrowings the future suggests either cuts to public services or tax increases, more worryingly the figures for the overspend have yet to take into account the Gordon Brown proposal for pumping taxpayers money into the banking sector, money that will in reality have to be borrowed or even further cuts to services or increased tax burdens. Given that over borrowing is the reason for the worlds woes at this time it would seem the taxpayer is to be hit with a double whammy. |
