Lurking in the shadows as Carney made his debut were the other big economic themes since the collapse of Lehman Brothers in September 2008: the magnitude and scope of the crisis; the fact that only a handful of politicians and central bankers saw it coming; the rise and fall of global co-operation; the unprecedented policy response with its as yet unknown side-effects; the transformation of a private debt crisis into a sovereign debt crisis; the squeeze on living standards; and the shift in the global economy away from the developed west towards emerging markets. … [Read more...] about Lehman Brothers collapse: five years on, we’re still feeling the shockwaves
Economic downturn of 2008
Monthly figures for the economy indicate that growth returned in May as lockdown controls were gradually lifted and pent-up demand fuelled a boom in consumer spending. Economists will be looking for further evidence of the recovery taking hold in June; the latest growth figures are published on Wednesday. … [Read more...] about UK to plunge into deepest slump on record with worst GDP drop of G7
Lawson’s legacy 1990-1992 The classic example of boom and bust economic cycles came in the early 1990s as Britain lurched into recession after a period of stellar economic growth during the late 1980s. Under the chancellor, Nigel Lawson, deregulation of the City of London helped fuel easier borrowing conditions, while tax cuts and low interest rates prompted a property boom. After interest rates were doubled in 1989 to curb inflation, unemployment soared and house repossessions hit record levels. The bust was made worse by the EU’s Exchange Rate Mechanism (ERM), which prevented interest rate cuts. … [Read more...] about How does UK’s Covid recession compare with previous ones?
The men sleep in the part that still has the semblance of a roof. They are crammed into three small rooms that are sour with the smell of dampness and stale food, the walls blackened by the camping stove they use to cook. The bathroom is the outbuilding next door, its roof long gone and its bricks reduced to rubble. The sitting room is a salvaged sofa leaning against broken walls. There is no sanitation here either and the men live in between the farm jobs they find on the tomato crop, charity handouts and Red Cross parcels. … [Read more...] about Spain’s salad growers are modern-day slaves, say charities