RECENT NEWS - 1 TRILLION POUND TIMEBOMB
The Bank of England's chief economist Charles Bean played down
concern about growing debt. The £1 trillion figure, he said,
did not mean UK households were sitting on a "time-bomb",
since an increase in borrowing had been matched by an increase
in financial assets. Hilary Cook, investment strategy director
at Barclays Stockbrokers, agreed with Mr Bean's comments.
She said the £1 trillion landmark was wasn't as "scary"
as it looked, because the value of people’s assets has risen
by around 60% in real terms during the last nine years. But workers
on the debt frontline remain worried about the personal cost of
taking on too much debt. But there are now a trillion reasons
why consumers need to stop and think if they can afford their
debt burden, particularly if interest rates go up."
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