Growth had returned to Britain by polling day. As Europe's financial centre, the UK had been particularly vulnerable to a crisis detonated deep in the banking industry. Consumers had taken on more and more debt in the years leading up to the crash; now they had lost the appetite to borrow. With companies hoarding their cash, the burden for supporting the economy through the recession fell on the government, but at a cost. Public borrowing, which stood at £34bn in 2006-07, had more than quadrupled three years later. … [Read more...] about Lehman Brothers collapse: five years on, we’re still feeling the shockwaves
Uk trade deficit with germany
That’s precisely the point made by Jubilee Debt Campaign: the reckless lenders that poured speculative cash into the country in the runup to the crisis escaped largely unscathed (though they were forced to accept some reduction in the face value of their bonds – known as a haircut – in the 2012 restructuring that accompanied Greece’s second emergency bailout). It has been a very different path to that taken in Iceland, which forced foreign banks to take heavy losses and has since seen its economy bounce back strongly. … [Read more...] about A new idea steals across Europe – should Greece’s debt be forgiven?
• The deal, it says, will cut Greece’s debt-to-GDP ratio to 120.5% of GDP by 2020, in line with previous targets. This will be achieved by private creditors taking a deeper cut on their existing Greek bonds, of 53.5% of their face value. The European Central Bank will also contribute, by passing the profits from its Greek bondholdings onto the national central banks, who will then pass it onto Greece. … [Read more...] about Europe in turmoil: five years of economic crisis