Recession Too Mild A Word

Published on, by Pablo Ouziel, 22 September, 2007.

… Yet yesterday in Crain’s New York business this could be read; “Only weeks after financial-sector employment in the city hit levels not seen since the technology-stock bubble, investment banks have switched into firing mode and halted most job searches … As a result, at least 10,000 Wall Streeters of all stripes could lose their jobs by year’s end, according to estimates from Manhattan recruiting and consulting firm Options Group.”

The same story is apparent in England, where yesterday the UK prime minister and chancellor met with US Treasury Secretary Hank Paulson to discuss the growing turmoil in world financial markets and after the meeting the chancellor insisted that the UK economy remained strong and that it would weather the current storm. Yet as the government promised depositors of Northern Rock they would not loose a penny as the bank’s share price plunged, thousands queued to withdraw their savings.

In this chaotic world of war and recession, which has Iraqis running for cover and Westerners heading to the bank, the rich are getting richer and the poor are getting poorer. According to the Telegraph a couple of weeks ago, just in Britain “the wealth gap is at its widest for more than 40 years, creating ghettoes of the richest and the poorest that have virtually nothing to do with each other” … (full text).

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