The UK's fiscal position, with a deficit of 14 per cent of gross domestic product forecast by the Organisation for Economic Co-operation and Development for 2010, is radically unsustainable. Big spending cuts and tax increases, relative to GDP, are inevitable.
Lost decade, anyone?
Today, Riksbank, Sweden's central bank cut the deposit rate to -0.25%, effectively charging savers interest on deposited money.
Ruins of the Second Gilded Age:
Martins, who creates his images with long exposures but without digital maniupulation, traveled from rural Georgia to suburban California, visiting large construction projects that began during the speculative boom years and then came to a sudden halt, often half-finished, when the housing and securities markets collapsed.
The abandoned or stalled developments -- and Martins's photos of them -- can be seen as signs of the hubris (and occasional criminality) that typified the boom and the economic and human damage that remained in its wake.
Sure, people were gullible, living beyond their means as Edmund Andrews admits to doing. But as Alyssa Katz reminds us, the real estate bubble was also a crime scene. The only trouble is delineating where crime ended and social policy began.
One thing we know about crises is they frequently bring about significant changes in the system of housing tenure. The Great Depression and New Deal innovations in housing finance and housing policy, plus the post-war boom and infrastructure building, brought a massive shift toward single family homeownership. My hunch is it's time for new hybrid forms of housing tenure which mix the benefits of ownership with the flexibility of renting.
What can we expect as the world’s economy emerges from its most serious downturn in almost a century?
Lower growth is the best guess for the medium term. It seems most likely, but no one really knows.
It is not inconceivable that the baby will be thrown out with the bath water.
There is so much you can't know about your spouse when you get married, like that one day she will want to eat her placenta.