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Friday, January 23, 2009

UK Officially in Recession!!!

The news today is that UK is now officially in recession! Knew this was coming but had hopes that it wouldn't. In the last three months the interest rates have fallen to an all-time low of 1.5%, the lowest level in its 315-year history!

Retails are closing up everywhere. Most have gone in to receivership and there are bucket loads of sales going on right now to clear their stock. If you were in London during the Christmas and New Year break you would have benefited from up to 75% off discounts on most items.

Other businesses are slashing head count left, right, and center. You see in the news that companies world wide are slashing head count by the thousands, quarter by quarter!

House prices have fallen by 15-20% in 2008 and its going to fall even further. For those who think that it is a good time to purchase a property by getting a mortgage from banks, well good luck. Banks won’t be lending even though one of the conditions of receiving a share of the £200 billion bank bailout is to start lending again.

In view, this is where the gap between classes will get even wider where the rich will become even richer. They are the ones that will benefit from this and have more options to pick up the “bargains” as they want. The poor and middle class won’t stand a chance. News reported mentioned that the recession will last for next two years. Fantastic! With the Olympic 2012 just around the corner where is the government going to get the funds now that UK is now in recession to fund it? From you of course! So expect your tax rates and everything else to go up and up. Joy!

What a start to 2009! :(

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