Monday, 10 December 2007

CHRISTMAS CASH CRUNCH

Stores in Britain are slashing prices, issuing money-off vouchers and extending hours as they fear the worst Christmas spend-fest in over 25 years. As the economy begins its slide, businesses are panicking.
Which is, of course, the worst thing they can do. As I’ve said elsewhere, the booming economy of the last few years has been based on confidence and credit more than actual economic success. So once confidence goes, so will the booming economy.
Of course, it could be that doctored news of a more hopeful variety will come before the Christmas shopping days are gone – and that will just save the shops from disaster. At least, in the short term.
But it will simply place people in more debt, to be ruined when it all falls down.

© Anthony North, December 2007

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2 comments:

Anita said...

Hey Tony,
You know, it seems every year we hear about how the economy is teetering on wrack and ruin and yet, each year we somehow all manage. Personally, I think the media just likes bad news and they juice anything up to spell as much disaster as possible. I just can't figure out why they like it so.
Annie (writer chick)
And why can't I use my usual identity on this blog thingie?

anthonynorth said...

Hi Annie,
That's one way of looking at it, I admit. But the other is that the system is kept going by inflated mortgages and pension funds, and by cheap credit.
If this is so, it isn't the solution to a healthy economy, but putting off the inevitable - and making the final fallout worse by degrees.
Believe me, I hope I'm wrong.
...
As for the usual ID thingy, I always link to anything on my other blogs from the Tony On posts on Beyond the Blog. So you can comment on anything here on that post if you still want the ID.