As we clear away after the Christmas festivities many of us have a few in-between days to reflect before the dawn of the New Year. 2009 seems set to be financially tough, but there are some simple steps (resolutions) we can all take to help us weather the storm.
Don’t listen to the doomsayers
Wherever you turn you’re bound to hear predictions of how bad the economy’s going to get, be they from “experts” or the guy sitting next to you on the bus. Ignore the lot. 2009 will most likely be financially difficult, but no one knows to what extent. Even the so-called “experts” don’t have a great track record when it comes to economic prediction, else they would have foreseen the credit crunch and done something to prevent it! Continue reading »
Financial Crisis – Who Pays?
Recession is nothing new. By their very nature financial markets, and whole economies, move in cycles. Highs turn to lows and then back to highs again, and there isn’t usually an easily pinpointable reason.
However, the current recession is outstanding in two respects. In terms of severity this one is big, as witnessed by the massive scale of government intervention and bailouts. The Congressional Budget Office has forecast it: “is likely to be the longest since World War II, and by some measures could be the worst since the Great Depression” [Source: McClatchy]. The current crisis also stems from a clear cause, ie so-called the credit crunch, itself the result of irresponsible greed. Continue reading »