Below is a economic report written by Roger Martin-Fagg & distributed in association with Sourcing City. We have known Roger for numerous years & have regularly used the information in his reports to aid our own business planning decisions. We thought it may be useful to share his thoughts with you.
| Report Summary: So what is the average economic view currently? It is that the recession is at an end and the recovery will take place from now, gathering momentum through next year and beyond? In this economic update I will explain why my view disagrees. Given the amount of money Governments have thrown at the system it is not surprising that the decline has slowed in Western economic activity. This is not the same thing as a recovery. The key factor is that the banking system is both unable and unwilling to create sufficient new credit to oil the system. However, a modest rebuilding of stocks will have Governments claiming victory in the hope it will change the average view that the worst is over and that on average we will expand, it could be a self fulfilling prophecy, but I very much doubt it, and for as long Bank CEO’s doubt it, the recovery will not happen until 2012. | The full report includes: Why Quantitative Easing is not working | Why the banks are not lending | Why the dollar will weaken against the Euro, but not against Sterling | Why house prices have further to fall, plus more……. | A free complimentary copy of Roger’s report can be found on the ‘more info’ button link.