ACE, Global Financial System, Financial Crisis discussed on Monocle 24: The Globalist

Automatic TRANSCRIPT

Ace is companies always indebted as they are this just sows the vulnerabilities of the system and quite how much damage has been done to the global financial system since the financial crisis and i think the figures a startling a capacity pre the financial crisis and that huge amounts of debt is possibly why in the uk we're not buying so many new cars yes so suit so what's happened what is happening is when consumers a really endebted an an and what's happened in the uk is quite like that in the uk pit like americans not let the germans he prefer to save but but what's happened is over the last year household incomes have been squeezed so wages and this is not just the case in the uk but in states and in germany many developed countries despite really low unemployment wages aren't really going up and it's very old nobody quite knows why so what we've seen in the uk this year is little wage growth despite record unemployment and inflation higher higher than wages so house also being squeezed because the pound in their pocket at the end of every week that wages end of every month a worth less by less because prices ago foster and so this year for the first year you've seen uk car sales full in the uk in 2017 now why this is important is because uk consumers have been gorging on car debt they've been gorging on debt in order to buy the latest flashiest car to impress their neighbors and it looks like this is finally coming to an end and that is that he's warriorking about the state of the uk economy because consumption is like sixty five seventy seventy percent of the uk economy and we're starting to see signs the uk consumers all less willing to gorge on that and more slightly more concerned about the future as a this has implications for the uk economy is hope well from buying caused to selling them or indeed selling a car company will though that's the reason the the problem is super info.

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