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Britain will be hit harder by the global financial meltdown than any other country in the world, experts warned last night. Prime Minster Gordon Browne blames global economic factors for the economic collapse. But economists warn Brits will be crippled by the credit crunch because they have been failed by the authorities in the past. They say families are drowning in debt and have little (if any) savings; Government borrowing has hit record levels and the coffers are empty; Banks lent money recklessly; Regulators failed to curb their risky behavior. This collective lack of management behavior has made Britain the most vulnerable country in Europe to the global financial crisis.
The relative importance of the financial sector to the UK economy, the high consumer debt most of which was incurred prior to the credit crunch by ‘To hell with the future’ minded consumers using their inflated value homes as ATM’s. Now the sharply deteriorating housing market has bared the real financial truth – and now everyone faces a rapid loss of previously ill gotten gains. Families face the slow-down crippled by huge debts. The total UK debt stands at £1,448 Billion – an average of £30,255 for every adult in the country, this according to Charity Credit Action organization. It’s going to be very difficult for families who will be forced to stop spending money and start saving. The era of easy credit is over.
Europeans are better placed to weather the storm because consumers have saved more and don’t carry as much personal debt. Although the global crisis began in the US, its economy is likely to recover more quickly – it typically goes into recession quickly but recovers just as fast. The fallout for Brits will be long and severe and it is time to stop fine tuning and time to switch channels. It is time to nationalize the global banking industry, allowing these so called financial gods to play with our livelihood has been proven to be our undoing. Will the powers that be have the balls what needs to be done? I doubt it.
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