Time is running out Behind all the optimistic talk about the health of world capitalism from Bush, Blair etc, the more serious analysts are worried. In its semi-annual report, the Organization for Economic Cooperation and Development announced that it is cutting its forecasts for all leading economies. It may not happen this year, but the huge imbalance in the world economy is going to crack.
Britain's House of Cards Wobbles House price increases are slowing down in Britain. In June in London prices actually fell. This is the beginning of the end of the house price bubble and it will be very painful for many families who have borrowed on the basis of the increased equity in their property. It will have a knock-on effect on the whole economy as spending is already slowing.
Jobless recovery for the U.S. economy Over the past couple of years the U.S. economy has gained some momentum and avoided slipping back into recession, but this was based on the increased squeezing of the U.S. and world working class, not job growth or significant investment in productive capacity. Even if the U.S. economy miraculously takes off in the second half of 2005, the damage has already been done for millions of working Americans.
