The general rule of thumb is that a recession occurs when real gross domestic product (GDP) growth is negative for two or more consecutive quarters And based on forecasts by the Organisation for Economic Co-operation and Development, Britain will be the only major economy that falls into recession this year.
Apparently the near collapse of the housing market is to blame for the demise of the UK economy which is why the Labour government announced a rescue package earlier this week. Most pundits have panned the package and a few even go so far as to say that it will cause further harm to the economy.
Personally, I think the government needs to step back and let the market correct itself. Yeah, it will be painful. But having the government butt in with a half measured response that benefits only a few, is definitely not the way to go.
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