Another day,another meltdown

This is getting to be quite a habit,switching on my RSS feeds mid morning and finding more news of economic meltdown.But here we go again.

This morning's GDP figures which show a third quarter contraction of 0.5% have sent the financial indicators in meltdown.

It is the first drop since 1992 and the biggest fall since the start of 1990.It all but confirms that the economy is now in recession.

At one point this morning the FTSE was down 9%,it has recovered since then and now stands at 7% down.The pound has also taken a battering,its currently down nearly 8c at $1.54

The fall was greater than expected and was broadly across most parts of the economy.

The Chancellor has been out and about this morning trying to reassure the public.

Yes, it’s going to be difficult, yes it’s going to be tough, but we can get through it.
“We’re going to be effected along with every other economy.
“We’ve got to make sure, in the medium term, that we live within our means.

he told BBC News whilst reminding everybody that the credit crunch began in America

Added to the pressure on the economy is Opec's decision to cut output.With oil slipping below $70 a barrel,the one rest bite for the economy was the lowering costs of fuel.The cut of 1.5m barrels is designed to push the price back up but bizarrely it fell $4 on the news.