Not quite the inference we all wanted, a second wave of recession is potentially looming because the problems that caused the first wave have not been rectified. I believe that this has been caused by inequality of income, yet again and an over-reliance on credit markets to make up the surplus, or credit as welfare. It is odd, however, that a state like Germany, where they save a massive proportion of their income compared to the British that there should be problems. Professor Schiller's appraisal of this outcome was widely distributed, and hopefully many have drawn in debts and sacrificed holidays to bring commitments down. The good news however, is that the government may start to tax banks who continue to reward overpaid bully-boys that dominate the city, forcing them to spend their money in a more equitable fashion. The question is, however, that is if there are more banking issues in Britain, what sort of rescue package can they fathom to bring us back to stability? And why wasn't more done in the first place? The attempts to 'de-politicise' economics have seemingly resulted in meaningless and offensive state bail-outs of monetary instruments so complex that only a few of us understand!
http://www.telegraph.co.uk/finance/comment/ambroseevans_pritchard/6095203/German-state-to-lend-directly-as-second-credit-crunch-looms.html
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