The R word has happened

Recession is apparently upon us or so the Governor of The Bank of England whispered in a speech to the CBI last night, hardly reported by the MSM yesterday. Mr King had this to say

Why has the outlook deteriorated so quickly? The banking crisis dealt a severe blow to the availability of credit. Growth in secured lending to households fell to an annualised rate of 1.9% in the three months to August, its lowest level in more than a decade. The Bank of England’s survey of credit conditions suggests that the terms on which banks provide credit to companies have tightened even further. And, on some estimates, the supply of finance to the UK corporate sector has ground to a halt. This credit shock has come on top of a fall in real disposable incomes resulting from the rise in energy and food prices earlier in the year. So, taken together, the combination of a squeeze on real take home pay and a decline in the availability of credit poses the risk of a sharp and prolonged slowdown in domestic demand. Indeed, it now seems likely that the UK economy is entering a recession.

So what are the media concentrating on instead, the story that George Osborne might have discussed a donation to the Tory Coffers of £50,000 pounds from a possibly illegal donor. Not a donation but a possibility of a donation that was refused. Even the main protagonist Nat Rothschild needed 3 attempts to get his "idea" of the facts correct.

Here we are in the middle of a crisis that has seen banks collapse, the apparent almost collapse of the banking system in Britain and on a day we learn that we are officially in Recession and the media are frothing at a Mandelson spin story.

As Hezza said in an interview on Radio 4 interview for the PM programme

Extraordinary, bizzare, have we all gone mad

How better can I express it.

Market jitters continue as bank chief uses the 'R' word - Scotsman.com News