Double-Dip Recession?? I wouldn't be surprised.

As we all (or most of us) know, we were recently in a recession. For all those who can't remember, it started halfway through 2008. Negative growth started in Q2 2008 and since the following quarter was negative growth, this was labelled as a recession (recession=2 quarters of negative growth). This happened while Gordon Brown, Former Labour Leader, was in Government. It was apparently all started by the collapse of banks, such as the Lehman Brothers in the US and since "when America sneezes, the world catches a cold" (Mr. Fivash), many countries...including us...went into recession. It was also due to aspects such as the credit crunch, where banks refused to lend (although not entirely sure if this was before or after).

A lot of craziness happened between Q2 2008 and Q4 2009 (the first quarter of positive growth after 6 quarters in the red). Interest rates hit an all time low (love the band XD) of 0.5%, Woolworths became bankrupt along with other businesses, a lot of money injected in and a lot of government intervention to save the banks, such as the takeover of RBS. Due to the recession, Labour and Gordon Brown got a lot of slack and lost face. Many people screamed for an election rather than the unfair passover from Tony to Gordon. Many Labour voters walked away as they were believed into thinking that Labour had "messed everything up" and first time voters were swayed away too.

A general election was finally called for May 2010 and everyone was on a LibDem/Nick Clegg hype (but they lost seats).Everyone believed they had a chance of winning. We had debates from the 3 major parties, which has never happened before. There were many agreements and disagreements but, when regarding the Economy, there were two major plans. Either make cuts now ("the deficit is too large") or wait until later ("we need stable growth first"). I'm sure we all know the outcome, Labour lost and no one got enough seats...leading to a coalition from Conservatives and LibDems, who agreed on basically...... nothing.

Well, if you haven't heard, last quarter (Q4 2010) we dipped back into negative growth because of "bad weather". Which is laughable, to say the least. Cuts have been made most of this year, especially this month. Soon, if you look at BBC NEWS you can see that the key figures for this quarter are soon to be published. If the GDP growth figure is negative, then we are officially back into a recession, deeming it to be called a "Double-Dip Recession". This is because we have only been out of negative growth for a year (4 quarters) and if you look at a chart of the growth for the last few years...you will see a double dip....how nice....


And, to be honest, would you be surprised? I won't be. The cuts were made at the wrong time, IMO.  I wonder what will happen at the next election, because people now hate Cameron and Clegg. Will Clegg still lead LibDems? What about Cameron? Will people switch back to Labour? Or are they still hated too? Will AV be in place? There are so many questions, but I guess all will have to wait. But the recession one...well not too long. Watch this space...we'll see what happens.

Also, I'm still annoyed that we sold of Cadbury's!!
v(.\_/.)v