Economists Warn ‘Don’t Panic’
UK consumers are warned not to panic amid fears of instability in the world markets, according to Hamish McRae, one of Europe's leading futurists, author, Business and Finance Journalist of 2006, and economic commentator of "The Independent."
"After the crash in October 1987, the world economy continued expanding for another three years, and the worst longer-term decline in world share prices for a generation, from 2000 to 2003, was associated with a relative mild global recession," said Mr. McRae.
"There is no reason to suppose that the next global downturn will be more serious than the previous three, in the early 1980s, early 1990s and early 2000s. As far as the UK is concerned, I happen to think that it will be less serious than the first two of those, but more serious than the most recent dip."
Mr. McRae joins the other economists who are reminding consumers that the housing market went through corrections, and the stock markets were volatile in the last three 'corrections'.
Economists have released several reports amid last autumn's credit crunch, and the more recent stock crisis, reminding consumers that what happens in the financial world is not always what happens in the 'real world economy.'
This has been seen in last week's stock market where healthy, thriving companies, experienced devastating stock devaluations. Reports have warned consumers not to sell their stocks, as the drop in stock value is based on trading volume, and instability, but not on the company's real world economic health.
This is also true of the banks who are reporting devastating 'write downs' but will still earn an increased profit over 2006.
Published on January 29, 2008
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