What’s next for the economy?
The global economy is in unprecedented turmoil. The credit crunch was just the beginning. Now we are in the grip of what the International Monetary Fund is calling the 'Great Recession'.
So how did this happen? In short, interest rates were kept too low for too long by the world's central banks. This allowed banks to lend recklessly which in turn created a series of bubbles in the markets, the biggest of which was the global housing boom. When American subprime borrowers (people with poor credit ratings) started defaulting on their mortgages in huge numbers, the fact that banks had over-reached themselves became clear and the credit bubble burst.
Governments have tried to keep the financial crisis under control by printing money (quantitative easing), propping up banks and slashing interest rates. Here at MoneyWeek Online we don't believe that any of these measures are wise or helpful - in fact they could end up prolonging the agony of the recession as they'll get in the way of a much-needed correction.
The big question is - how do you invest in such tough times? Well, the good news is that falling prices and panic selling mean there are bargains to be had out there. And here at MoneyWeek Online we are constantly on the look out for the very best opportunities this recession - and the government's self-serving reactions to it - are going to present.
If you're interested in finding out how to take advantage of these opportunities - and make real financial progress even in the Great Recession - please don't delay.
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