UK Landlord Forum / Life

Quote
Gloomy pundits are in danger of talking the country into a recession, senior Labour figures have warned.

Ministers say the fundamentals of the economy are sound, with inflation low, employment high and interest rates coming down.

But they believe commentators' repeated warnings of a recession may scare consumers so much they stop spending - bringing about the downturn everyone fears. One senior figure said: "There is a danger of a self-fulfilling prophecy.

"Economies are not just about money but also confidence. We must not talk ourselves into recession."

The warning comes amid a spate of bad news for Chancellor Alastair Darling - including repeated prophecies of a slump in house prices. And a survey out yesterday revealed the number of people turned down for credit has increased as lenders tighten their belts.

About 63 per cent of people questioned said they had been refused credit in 2007 - up from 54 per cent the previous year.

I think a few of us have been saying that from the start...self-fulfilling prophecy.

Source: http://www.mirror.co.uk/news/topstories/2008/01/05/you-re-talking-us-into-a-recession-89520-20275082/

Of course they're talking us into a recession. Recessions make news, which makes work for pundits .... the same pundits who are doing the talking.

That's the 'wonder' of media.


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