The latest revelations and fines for Barclays on their alleged manipulation of interest rates and potential selling of protection against interest rate rises, could lead to another banking crisis. Some commentators have stated this could be the “tip of the iceberg” with possibly all the major UK and some overseas banks being involved in similar schemes.
The RBS and Nat West “meltdown” of their banking update systems has now focused their shortfalls away from their business customers to the many consumers who have been put in cash flow problems for over a week in some cases.
With the European national debts regularly in the news and the banks lurching from one crisis to another, what chance has business and the wider UK economy of getting out of the double dip recession?
It appears that the MW Interim Finance article a week ago has stimulated more widespread comparisons of the main Euro Zone protagonists who have survived and progressed to the knockout stages of Euro 2012. All the countries that remain, with the exception of the Czech Republic, are notable for their position in the debt ranking in the Euro Zone. It is ironic that the strongest economy, Germany, next play Greece, the weakest, with little possibility of survival……..however to date they have survived multiple bail outs, so could there be an upset on the cards? With England bumbling their way along on the sidelines with an even chance of progressing further against Italy, we wait to see which of the remaining countries will survive, both in the competition and economically.
The similarities in the performance to date of the European football nations and the debt crisis are apparent as we reach the middle of the Group stages of the competition. The UK battling France and not getting a result, Germany showing the rest of Europe how to play football and the strongest to date. Greece playing with effort in adversity but bottom of the pile, and unusually, the Netherlands doing worse than expected. Spain and Portugal flattering to deceive and on the roller coaster ride of ups and downs, and Ireland hanging on for dear life. We wait to see how this develops in the knock out stages…..