Recession is NOT OVER
Published / Last Updated on 24/06/2009
Recession is NOT OVER
Despite people talking about green shoots in the economy and in the mortgage market in particular, we suggest this is nothing more than a ‘summer feel good’ bubble.
The reality is that this week, Setanta Sports in the UK has gone into liquidation and Comet parent, Kesa, has reported trading losses of over £80m, a £210m reduction from profits last year of £130m. Excluding the huge ‘writedowns’ of its Spanish subsidiaries at £120m, this is a still a fall of £90m in trade profits.
Many more high street businesses are still yet to declare. We suggest you should expect more losses, more job losses and as tough winter.
The recession is not over and employers will be making some tough decisions over the next year. In addition, when companies do not make profits, corporation taxes are not paid i.e. government spending will be cut meaning more job losses and less work.
Tighten your belts and get your own finances into shape.
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