Will the recession drag on or will it be shorter than previous predictions have led people to believe? My suspicion is it will be long and deep.
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The CBI (Confederation of British Industry) commented that the recession will be shorter and less severe than previously expected. The CBI believes that the pace of contraction will moderate by the end of this year and moderate growth will materialise early next year. They also scaled back their forecast for unemployment from 3.2m to 3.03m by the second quarter of 2010.
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On top of this negative slant for the euro, IMF’s Strauss-Kahn has re-empahsised concerns over the budget situation in Latvia, he said “The IMF is especially concerned about the fact that the necessary measures which have to be undertaken to fix the important budget deficit should not hurt the poor, primarily.” Escalation of budgetary concerns in Latvia will weaken the euro and Swedish Krona.
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Posted in The Market Club 
