Sunday, 26 July 2009

Huge gilts row barely registers as the UK sleepwalks into stagnation

Telegraph
"The political classes obsess over the Norwich North by-election and Labour's slow-motion hara-kiri under Gordon Brown. But the news that really matters – the economic news – keeps flowing thick and fast. And it's far from reassuring. .....These GDP numbers expose the City's talk of "green shoots" as nonsense. A full recovery won't happen while the UK remains burdened by our newly created Japanese-style "zombie banks".This is the heart of the problem – yet the politicians don't want to know. The banks are ticking over on a diet of government cash while charging usurious rates on extremely limited lending books. The UK, meanwhile, sleepwalks towards a lost decade."

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