A day after Britain unveiled a multi-billion-pound fiscal stimulus package to spend its way out of recession, market analysts have been busy figuring out what it all means, in the context of a sharply slowing economy.
Nick Parsons, head of market strategy at nabCapital, has come to this conclusion:
“People need to spend less, not more, and though little Johnny’s Xbox is indeed 4 quid cheaper, his Dad’s house is worth £3.97 less every hour,”he wrote in his daily note.
“That’s every hour of every day, 24 hours a day and is not going to get in the slightest bit better as a result of yesterday’s budget announcement… Thanks to the VAT reduction, Easter eggs might be 10p cheaper next year but by then average house prices will be another £10,000 cheaper. Go figure.”