North America isn’t alone in struggling with the combined challenge of inflationary pressure and economic stagnation. The fed recently decided to keep interest rates steady, while in the UK they are edging up. At the same time the ‘credit crunch’ is being blamed for a downturn in Britain as retailers and house builders start to report problems:
The credit crunch hit the high street with a vengeance yesterday as shock figures from Marks & Spencer wiped £4 billion off the value of Britain’s leading retailers.
The grim news from Middle Britain’s favourite store marked a new phase in the economic downturn and threatens the high street with its worst slowdown in 20 years. Adding to the gloom, one of the country’s biggest housebuilders revealed that it was teetering on the brink of collapse. Taylor Wimpey’s value more than halved after it failed to secure rescue funding and said it would cut 900 jobs.
As the global economy is faced with more challenges can BC stay unaffected?
On a side note it’s interesting to see how competition from other locales is showing up in our housing market. I’ve noticed recently that the ‘for sale’ section of craigslist has been listing a number of properties in Arizona, Florida, California & Ontario.
-thanks to JB for the Times story link.