Wednesday, 2 January 2008

FINANCIAL OUTLOOK 2008 - SAXO BANK: UK RECESSION TO PROMPT AIR OF 'FORCED SAVINGS' IN A TOUGHER 2008

Saxo Bank, the Danish online investment bank, issues a cautionary 2008 outlook - warning investors of the end of cheap money, tighter lending conditions, rising inflation and a UK recession ushering in a new mood of "forced savings" for Western consumers.

Saxo is bearish on the pound

Financial outlook 2008
US and Western consumers will have to stop living beyond their means and start saving, for the first time in decades, as rising inflation in 2008 sees the cost of living soar, applying a break on consumption and turning GDP growth negative five quarters after house prices peak. For the first time since the seventies we are seeing the re-emergence of "stagflation," which means we are seeing a reduction in risk-appetite, rising inflation and slowing GDP growth.


For more, click the link below:

http://www.telegraph.co.uk/money/main.jhtml?xml=/money/exclusions/hubpages/outlook2008/2008saxo.xml

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