PDA

View Full Version : Darling warns of economic crisis


Mad Tony
29-08-08, 21:56
The UK is facing its worst economic crisis in 60 years, Chancellor Alistair Darling has admitted.

He told the Guardian newspaper that the economic downturn would be more "profound and long-lasting" than most people had feared.
Using strong language, Mr Darling acknowledged voters were angry with Labour's handling of the economy.

Ministers are expected to announce a package of measures next week to kick-start the moribund housing market.

Voter anger

House prices are falling at their fastest rate in 18 years, leading to fears of a wave of repossessions in the upcoming months.
Mortgage lending has slowed dramatically due to the credit crunch while key indicators have suggested that the economy could be poised to go into recession in the near future.

The economy showed no growth in the second quarter of the year while building firms and retailers have laid off thousands of staff in recent weeks amid fears that the economy will deteriorate further.

A member of the Bank of England's Monetary Policy Committee said on Friday that radical action was needed to ensure the crisis did not get worse and warned of a sharp rise in unemployment.
In his interview, the Chancellor admitted the government had failed to get the message across that it understood people's concerns about rising living costs and growing job insecurity.

He said that voters were "****ed off" with Labour's handling of the economy, a key issue at the next election.
The Chancellor has been criticised for sending contradictory signals over possible measures to assist homebuyers, particularly the prospect of a temporary suspension of stamp duty on home purchases.

Source: http://news.bbc.co.uk/1/hi/business/7589291.stm
---------------------------------------------------------------------

Is there an ounce of truth to this or is it just scaremongering?

Something I do know though, Alistair Darling is doing absolutely nothing to help the housing market. He doesn't seem to be doing anything about this fuss over the stamp duty. At the moment, nobody is buying because of this.

lararoxs
29-08-08, 22:13
I guess it was just an amount of time before they did something like this...

rickybazire
29-08-08, 23:55
Oh great...

Something they said in Mock The Week which is quite true. 'If house prices fall, they say there's a problem with the economy. If house prices rise, first-time buyers won't be able to get on.'

So either way of house prices, it doesn't look good...:confused:

EDIT: Hugh Dennis on Unlikely Greeting Cards - You're moving! We've repossesed your house...

Lew
29-08-08, 23:57
The UK gets overcharged for everything, $10 for a 20 pack of cigs? dont think so.

Mad Tony
29-08-08, 23:58
The UK gets overcharged for everything, $10 for a 20 pack of cigs? dont think so.I agree. $10? Or do you mean 10? :confused:

Lew
29-08-08, 23:58
If you convert a 5 packet of 20 cigs into dollars its roughly around $10. Remember when the PS3 use to cost us around $800?

Mad Tony
30-08-08, 00:03
If you convert a 5 packet of 20 cigs into dollars its roughly around $10. Remember when the PS3 use to cost us around $800?Oh, I see what you mean. How much are cigs in America then?
Yeah, I remember that. I think out of the entire world we payed the most for the PS3s except perhaps for a couple of other countries. We also pay some of the highest prices for petrol in the world too.

Lew
30-08-08, 00:10
Oh, I see what you mean. How much are cigs in America then?
Yeah, I remember that. I think out of the entire world we payed the most for the PS3s except perhaps for a couple of other countries. We also pay some of the highest prices for petrol in the world too.

I dunno actually, I think its cheaper; Although I tend to buy the most expensive ones like Marlboro which i based my prices on.

Yeah petrol is outrageous here, when i learn to drive next year itll be even worse probably. At least nightclubs are cheap though.