The economic transition which is in progress will have a range of impacts. The squeeze on house prices is something many will welcome as "affordability" and entry prices become easier for more people. Yet for those facing negative equity the squeeze is less welcome. The problems of house builders are one other example of the impacts of the down turn and are likely to test the robustness of many companies financial models and assumptions.
There is no escaping this adjustment and the political consequences are unclear. Gordon seems to have responded well to a "crisis" while Cameron, having promised much as a new face, seems to have an empty pantry.
And yet, out and about over half term, the shops still seem to be in good business. Perhaps the impact on such activity will be a third phase. Phase one - financial sector/liquidity, phase two - employers and builders etc, phase three (Jan onwards?) - increasing employment problems?
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2 comments:
It's a hell of a sacrifice to crash the economy to keep the Tories out, but I can see the attractions!
Then again for a highly educated bloke like Brown you have to ask your self how the hell he did not see this coming. But in the end of course all those people without a job, without a home, without any hope, might well decide that voting Labour has come to an end and perhaps they will vote Tory because the fact is can they be any worse, or better still who the hell cares who wins because we are stuffed anyway
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