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It’s been a pretty crappy day for the stock market and business universe as a whole. And days like this highlight the fragile state the economy is still in. We may have just come out of recession (although this could still be revised down) but we still have a mountain of work to do to get the economy back on some sort of road of stability.
What is a cause for concern is that any further shocks to the British economic system could shoot the country back into recession again. Today the Bank of England announced that it is to halt the QE programme. To me, this seems a bit premature. Especially after the turmoil the markets had today. I still think the banks could have done with some extra cash to improve their cash flow and lending abilities. Consumer confidence has risen but not enough for experts to say we are on the road to recovery.
Not everything about the economy is on a downer today. House prices went up for another month by 0.6% and interest rates were kept on hold at 0.5%. So if you have a mortgage that is interest rate linked then it is good news, and if your looking to sell within the next couple of years or so the housing market isn’t doing too bad from your point of view either. But, for people like me who will be looking to get on to the property ladder sooner rather than later, this isn’t the best news I want to hear. Property is still way too expensive, deposits on most mortgages are still pretty massive, the interest rates on my savings are worthless and renting is just throwing money down the drain at the minute.
There, just thought I’d give you my perspective on the business world right now. Tell me if any of you think any different!
UPDATE:
I suppose it could be worse, we could be in Greece right now! And I heard Portugal isn’t looking too good either.
