May 20th, 2009
02:59 PM GMT
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Just read an excellent economic report from HSBC about what will happen after the recovery arrives. Fundamental point is that some governments (like the US and UK) have borrowed so much to get us out of the mess that we will be paying it back for a very long time.

Numerous scenarios are put forward – all involve times and period of either higher taxes, lower spending or both. It is an admission of what we all know in our hearts of hearts – that the payback from this crises will be long and painful.

We are covering this tonight on QMB and I am going to make this my Twitter question tonight.

It’s sad to say but if we had saved more in the good years we wouldn’t be in such a horrible state once the recession is over.

soundoff (4 Responses)
  1. Luis Martin-Cardozo

    It is very sad, but it will take a very long time to recoup and see some money back. There is not doubt that higher taxes and spending cuts are necessary, but all of us are making our part and reviewing our financial strategy to keep ourselves a float and be able to have decent future. I'm very optimistic but reality is fierce and some quick solution should be offered now to keep our moral up and in good standing ... is there a light at the end of tunnel?

    May 20, 2009 at 3:23 pm |
  2. Peter Vaz

    Prof. Quest behind all the recovery green shoot, the Damien Omen Crude Oil is slowly entering the Global veins and arteries this the second wave of recession to come?

    May 20, 2009 at 5:42 pm |
  3. Hash Tailor

    Dear Richard,
    Given the bleak outcome for all world currencies how do we protect our savings and investment from high inflation? any bring ideas? maybe switch to Gold would be one answer.


    May 21, 2009 at 10:36 am |
  4. Doug

    And you forgot to mention the inflation probabilities. It's much easier for governments, and their constituents, to pay back in inflated money than 'real money'. This could bring on a whole new wave of international problems (e.g. US' huge borrowings from China).

    May 22, 2009 at 1:04 am |

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Quest Means Business airs Monday to Friday, 1600 New York and 2100 London, and is hosted by Richard Quest.



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