Monday 16 March 2009

Britain showing signs of heading towards 1930s-style depression, says Bank

Telegraph
"The country is displaying early symptoms of being trapped in a so-called “debt deflation trap” where families find themselves pushed further and further into the red every month, according to a Bank report published today. ....It says that families with high debts could fall prey to the debt deflation trap. This means that the cost of their debts, which are fixed, would rise compared to average prices throughout the economy. While inflation erodes debts, deflation makes them relatively higher."
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Fears of tax rises as collapse in City revenues puts pressure on Darling and his Budget
(Daily Mail)

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