Crisis ‘will get worse’

Tuesday 10th February 2009, 3:00PM GMT.

THE financial crisis will get worse before it gets better, according to the vice-chairman of Credit Suisse Asset Management.

Bob Parker told an invited audience last week that the first three months of 2009 would be the worst quarter, but that the UK economy would start to climb out of the recession in the third quarter of the year after ‘a very traumatic’ first half.

Mr Parker backed his optimism with a number of key indicators, including the comparative value of sterling currency and very low interest rates.

Speaking on Thursday last week – the day the Bank of England announced another half per cent cut in the base rate, to one per cent – Mr Parker said that the action by the central banks to flood the markets with liquidity was also positive for the economy.

• Picture: Bob Parker (right) and Craig Allen

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1
Phil

February 10, 2009 at 3:28 pm

Whilst it has yet to be proven that flooding the markets with liquidity actually will result in assistance to hard pressed business, especially if consumers remain firmly sitting on their hands, we should keep our £140M safe in the Bank and use it, and only if we must, much later this year.

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2
Boris

February 10, 2009 at 7:02 pm

Great how about the JEP writing the headlines ‘Night Follows Day says Boris’? Sorry Mr Parker but predictions from anyone in the banking sector need to be taken with a pinch of salt.

I do not recall banner headlines quoting Credit Suisse warning of the credit crunch and global financial meltdown, so you stating the obvious is not really a lot of help to anyone.

It would be fantastic if you would answer this instead of just talking to an ‘invited audience’.

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