It's all gloom and doom. Ug. The industry financially is getting worse on a daily basis. Analysts skirted over the "risk" of a recession some months ago, saying it would never happen. Reading today on a news website, they have said the chances are 50/50. Personally we are heading into a recession. How bad? Who knows. The chancellor passed the UK's financial stability over to the Bank Of England, what the purpose behind that was seems very clear.

The other month sales across the high street soared for a record month, yet, belts were tightened, house prices depleating, secured lenders pulling out of the market, unsecured lenders pulling out of the market. Signs of improvement are a long way off. Unemployment is now on the rise as companies fold, or reduce staffing levels as consumer spending is now becomming more stringent across most households. Faced with the "middle class" debt crisis, which people on lower incomes were hit quite a few months ago.

Reports accross the market suggest the BOE will increase the base rate over the comming months, the question posed, what impact will that have? Raising the interest rate may slow consumer spending down, in an attempt to stifle inflation, but, it terms of mortgage payments, how many people will suffer, with rising cost all around, fuel, gas, electricity, food etc, if families are struggling before the rate increase, will this cause more of an economic crisis accross the UK, with added bad debt... Vicious circle, how to break it? Things will get worse before they get better.

There is only so much "fund raising" from share holders the big banks can do. With the added court case against the banks in terms of charges, if the court favours the consumer, then refunds may total millions, if not more, will banks then charge for the day to day banking service to recoupe? There has already been increases in interest rates. This is all significant. The storm has only begun.......