Unpayable debts will hamper recovery

A very thought provoking interview today on a lunchtime consumer programme.

The prospects for our economic future were discussed in terms of:

• The political consensus to cut back on public spending and the need for programmes of productive spending such as home insulation / flood defences
• The effect of historical high interest rates and the Banking sector squeezing customers and making profit on reckless lending
• The problem of un-payable debts owed by individuals and companies with the burden of debt remaining - demonstrated by increased rates of personal and business insolvency
• Debt ridden bank balance sheet with no sign of improvement despite massive cash injections

To listen in full to the brief interview with Ann Pettifor an economist, and, as a recent Times article called her, "a member of a select club — the seers who saw it all coming..." click here. the interview is approximately 24 minutes through after an item on high street shops.