THE TELEGRAPH: The British economy faces the real risk of falling into recession, the Governor of the Bank of England has admitted.
Mervyn King warned families to brace themselves for a further "squeeze" on household finances as rising energy bills and food prices continue to rise.
Mr King said that inflation was set to increase sharply to about 3.7 per cent - almost double the official target. As a result most British people will feel poorer this year as pay rises fail to keep pace with rising costs.
The Governor - who said that "the nice decade is behind us" - also warned homeowners that property prices would fall further and that it was impossible to predict the scale of the decline.
He became the first senior public figure to openly discuss the possibility that the British economy may now be heading for recession. The economy was "travelling along a bumpy road" and that a sharp downturn could not be ruled out, he said. Recession Danger Is Real, Warns Mervyn King >>> By Robert Winnett | May 15, 2008
THE TELEGRAPH:
Financial Crisis: Labour's History Is Repeating >>> By Edmund Conway | May 15, 2008
The Dawning of a New Dark Age (Paperback - UK)
The Dawning of a New Dark Age (Hardback - UK)
