Cazenove's Jeffrey: How can UK solve debt crisis?

UK

There is undeniable truth to James Blish's comment that "Credit … is the only enduring testimonial to man's confidence in man".

That confidence, of course, is not a constant, and varies significantly through the economic cycle. Indeed, the characteristics of the modern-day economic cycle can, for most intents and purposes, be seen as being determined by the credit cycle. An economic upswing is most often given its momentum by operators in the economy becoming confident enough to borrow more, so as to raise consumption and capital investment spending and also investment in financial and property assets. More often than not, this process is instigated by the monetary authorities reducing the cost of borrowing. Duri...