Tuesday, October 6, 2009

UK economyshowing no sign of real production growth

As per the news, the UK economy is showing no sign of real output growth which seems to be the most disturbing fact looking at the financial markets recovery. The financial markets are on their bullish framework and showing signs of consolidated growth over time. Is this growth justified when compared to a negative real growth in production?
This recession hit very badly to the framework of the working of financial markets. These markets are not presenting the correct picture of the economy rather showing false images by forming bubbles which burst quite often. This phase which is termed as the recovery phase might be another bubble engulfing many people in the trap.
There is a definite need of an hour to convert the technical valuation of the financial markets product into fundamental valuation. Until this happens, we can't see any sign of recovery phase of any economy.

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