“The United Kingdom is in a deep recession. House prices are falling after an extended period of large increases which left many households over-extended. Financial conditions are tight, and the financial market crisis has threatened the stability of the financial system. External conditions are also highly unfavourable. The recovery is likely to be slow and unemployment is expected to climb significantly.”
Not my words, but those of the OECD, who last week lowered their growth forecasts, or more precisely increased their contraction forecasts, for the UK.
Their recipe for recovery: cut spending and put up taxes because a 14% deficit will kill the economy.