Gordon Brown concedes recession 'likely'
24 Oct 2008
By Lee Wild

Gordon Brown has finally admitted what everyone else already knew, that the global economic slowdown is set to plunge Britain into recession.

His comments, made in parliament today under pressure from Tory leader David Cameron, echo sentiments expressed by Bank of England governor Mervyn King.

“The governor of the Bank of England said last night that not since the First World War has the international banking system been so close to collapse and I agree with him,” said Brown.

"Having taken action on the banking system, we must now take action on the global financial recession which is likely to cause recession in America, France, Italy, Germany, Japan and - because no country can insulate itself from it - Britain too."

Shares tumbled and the pound fell to a five-year low versus the dollar as markets absorbed the news.

“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. It seems likely that the UK economy is entering a recession,” King told business leaders in Leeds Tuesday.

Source: http://www.sharecast.com/cgi-bin/sharecast/story.cgi?story_id=2410331