In terms of the housing market slump which began in the US but major and global financial institutions being exposed in a cascading effect of the economic collapse in the US. The UK seems to be the most to lose from all the mess due to the fact that, Brit’s owe more in credit than Americans in terms of disposable income. In the UK, there is also a stronger link between the consumer spending index and the price of homes than in the US where the two are distinctly separate industries. The US has also pro-actively adjusted rates to lower levels to cope with the economic status of the country, in the UK they pay more taxes yet not much in terms of helping consumers with rate cuts have been done. They truly are in worst shape than the US for they stand to lose more, at a faster rate bringing the economy down, further into an already bad recession.
Americans are also more optimistic about the whole economic troubles, predicting the end of the recession and the start of the recovery process sometime next year. The UK has already seen worsening home prices but the fragile balance between controlled chaos and total market collapse is indeed a thin line. The UK will see a longer recovery period, compared to the US where people’s optimism is high, fueled by a new President at the helm of the country that has fared fine so far even with the grim statistics. An end to the global recession is still to be seen, just hope less fortunate people in poor countries can take the strain of this, one of history’s most memorable economic recessions.

This entry was posted on Friday, April 3rd, 2009 at 4:48 am and is filed under Uncategorized. You can follow any responses to this entry through the RSS 2.0 feed. Responses are currently closed, but you can trackback from your own site.