Worst Placed to Beat the Recession

First it was France and Germany, ow the US have come out of recession and we are still firmly in it with a 0.4% contraction in the last quarter. Remember all that chat form labour about how you need to invest and spend you way out of a recession? Remember how wrong the Tories were about the need for spending cuts and, oh yes, remember how Britain was best placed to weather the storm?

Perhaps that all looks a bit wrong now doesn’t it?

Gordon will not admit it but his great gamble of record borrowing has not paid off and has made him and in turn the country the laughing stock the world over. Even if Britain pulls itself out of recession by the beginning of 2010 we will still be one of the last of the world’s big economies to come out of recession. I tend to look at the markets to judge where the economy will be in 6 months and we’ve only fairly recently seen a steady rise in the FTSE100. By my reckoning we’ll be officially out of recession by the 2nd quarter of 2010, but just because we’ll be out of recession will not mean that the economy is all rosy again.

The unemployment rate continues to rise and will probably peak at over 3 million. Consumer confidence is still very low

We have to remember that our economy has shrunk by 5.9% since we went into recession. That is quite a jump for an economy of our size. It will take a long time to recover, it will be painful during the process but we’ll get there.

As a side thought. If every baby born today is born having to saddle about £25,000 of debt as a result of Labour’s economic incompetence then what happens if  we stop having babies? Who will pay the money back?