fears of a drop in housing construction have been again this week with Bovis, a leading British manufacturer of the house said the call for the Bank of England to cut interest rates to alleviate pressure on the struggling sector. Bovis Chief Executive Malcolm Harris has called for a 0th 75% interest rate cut to 4 5%, the company reported a profit decline of 6% and a warning that 2008 could be worse if interest rates Current governed. The comments are at the back of a set of indicators for all sites in order to take pressure of the Bank of England measures.

Since the current slowdown in the U.S. was triggered by the subprime crisis, which turned to British investors stumbled into the Northern Rock debacle, the credit markets and housing prices in the unknown. The situation by the fact that while the U.S. Federal Reserve to lower interest rates than the pressure on the holder of the national mortgage has been moved easily tightened, it does nothing to weaken the dollar, have fought on one level because of concerns about the funding of maintenance is needed to help Iraq and Afghanistan conflicts. The ECB, European Central Bank has been conspicuous by their silence and did not want to take measures for the dollar, and was very happy to see the value of the euro against the float to help, not just the dollar but the pound sterling and other major currencies.

One can mix the domino effect on property markets across Europe, the ECB into action and with lower rates because their economies in the world follow the U.S. in their fears recession. If the central bank to cut interest rates this a blow to the effect that the oil prices fall further fears of recession seen in the help of the United States.

So what do they expect? It’s a bit like Nero fiddling while Rome burns. Could it be that economies now so very different in Europe over 25 very different economic development levels, is too difficult to manage with one hand at the helm.

One of the biggest fears when the euro was introduced, was that while the economies have been a convergence of economic standards, the complexity of their management arising from maturity, setting policy interest rate would be difficult. movements in interest rates could benefit a member country, while others are injured. This inability, all member countries, please, all ideas that can come from political interference to make the ECB, if the members were more distressed at the expense of poorer members.

It appears that requests for action rather than the frame, the Central Bank has decided to do nothing and he could sit on the fence now that the straw that broke the camel, is economically. Over time, the bank has to cut rates, it may be too late to avoid global recession.

I am sure that in these moments that the British decision not to join the euro and give them the ability to set their own domestic interest rates, appear to be a great vision. It is certainly true that the economy of the United Kingdom for all appeals of his cuts interest rate raises by the industry to act in a much better position, based on national indicators that benefit themselves only. The rest of the world waits to see if Brussels, Cojones “to act decisively. I fear we may wait a while.