Saturday 5 February 2011

The real pain of the financial crisis is only just beginning

Independent
"Now comes the reckoning postponed, with the rate cuts and fiscal stimulus of 2008-09 gone. We will see more tax rises – including national insurance – and all-time highs in petrol prices, rail fares, energy bills and food costs. There will be reduced public services, unemployment nearing 3 million, falling house prices, and perhaps rising mortgage rates.

And even then we will not, as a nation, have paid the full price for past excess. Not to mention the risks of a eurozone meltdown, China's property bubble bursting, or another downturn in the US. The "re-balancing" will be painful."

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