[Re: Loss of UK’s AAA rating will intensify the pressure on sterling, yesterday]
The loss of the AAA rating may be symbolic, and markets may not consider it a disaster, but it symbolises the decline of Britain as a confident economic power. Medium-term growth forecasts are depressed, and nothing is being done to reverse this. The downgrade reflects a collapse in political willpower to see the UK prosper.
It’s not great that Britain has lost its rating. But in a study of stock market performance of five countries that suffered the same, markets were higher 12 months later by an average of 17.7 per cent. It’s not all gloom.
[Re: How clever traffic management can boost UK growth, Friday]
How right Martin Cassini is about the waste, frustration and dangers caused by the excessive use of traffic lights in this country. The ultimate stupidity has to be traffic lights at roundabouts. Where does the incentive to install so many come from, and who, apart from the manufacturers, gains financially? We should stop the funding of new traffic control schemes. Meanwhile, all existing lights (except those at blind or truly dangerous junctions) should be reset at permanent flashing yellow. This would provide a cautionary warning, enable traffic to flow more freely in safety, and improve driver awareness and reactions.
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Low interest rates are not the magic answer for economic success, but a consequence. Cheap credit got us into this mess.
Moody’s are saying Britain needs to cut faster and quicker. It’s the Labour party that is in denial.
George Osborne has failed on the two economic tests he set: deficit reduction and maintaining the UK’s sovereign debt rating.
After the Eastleigh by-election and Lord Rennard allegations, I predict the coalition will be over by the summer.
Readers of City A.M.