Tuesday, October 28, 2008

How encouraging

UK finances may be bad but there are many other nations that owe a lot more - Times Online

More pessimism, this time looking at Britain and Europe.

As has been noted elsewhere, it's ironic that so many Europeans should be gloating about what they see as an American problem coming home to roost, when it actually appears that much of Europe is going to come out of this very badly indeed.

As for borrowing to pump prime the economy, the above article notes:
Meanwhile, some economists have expressed deep concern over how even bigger increases in government borrowing will eventually be paid for. At some point in the future hefty tax increases or spending cuts still look inevitable. But when things are this bad, anything is worth a try.

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