May 28, 2012
-- Researchers at HMB Investments have been examining the UK Economy and the latest possible scare that the UK may be headed for another recession. Despite government promises that quantitative easing would deliver a result, many are sceptical as to whether it has worked, or in fact will ever work.
Research shows that two consecutive negative quarters, which in literal terms equals a recession, are in fact what is foreseen for the UK. The plan was that by this time the UK would be on the rise if not at a plateau; however predictions show that this is not the case. The expectations of QE were that it could provide a monetary buffer in times of trouble, give a boost of confidence in the economy, and reduce borrowing costs for the government. On the flip side of the coin it does not assist with unemployment which is at a staggering high right now, new regulations mean that banks are less likely to lend, therefore in such times bond markets would be a much more reliable source of funds than the banks.
“To really understand the benefits of QE it is essential that you are up to speed with the financial markets, the banks are in a state of safe play and are not readily lending, getting active in the markets is the only way to go for businesses”, claims a representative from HMB Investments."
HMB Investments is a top level advice company based in Austria. For more information please go to http://www.hmb-investments.com/