Mindful Money’s news round-up: Monday 8th August 2011

8th August 2011

Story of the day:

From the Guardian, 9 August 2007. 15 September 2008. 2 April 2009. 9 May 2010. 5 August 2011. From sub-prime to downgrade, the five stages of the most serious crisis to hit the global economy since the Great Depression can be found in those dates.

Global financial crisis: five key stages 2007-2011

And the best of the rest:

This morning in the Financial Times, borrowing costs for Spain and Italy tumbled on Monday as the European Central Bank intervened to buy the countries' respective bonds and try to stabilise financial markets.

Yields on Italian and Spanish debt tumble

Also in the Financial Times, traders are flooding into gold while trimming stock and industrial commodity positions as global markets gyrate following the downgrading of the US credit rating.

Eurozone debt rally helps contain selling

The Guardian is reporting on the UK housing market, seven out of the 11 UK regions are now "first-time buyer blackspots" as demand from new entrants trying to get on the property ladder slumps in the face of rising living costs and financial uncertainty, according to a new report.

Most of UK is first-time buyer blackspot, reports Rightmove

Also from the Guardian, one of Britain's most successful fund managers has warned about an emerging market bubble and told small investors, who have poured billions of pounds into emerging market funds, that returns could be sorely disappointing over the next few years.

Emerging markets: a bubble that has finally burst?

The Bank of England is this week set to slash its forecasts for the UK economy once more and signal that interest rates are going nowhere in an attempt to safeguard the fragile recovery in the wake of the continued shock to global markets following America's credit downgrade, says the Telegraph.

Bank of England to cut UK growth rate again

The Telegraph is reporting on consumer spending and how social class is effecting spending habits, as austerity bites, retailers are turning to demographics to prise money from reluctant shoppers by targetting different groups from "secure families" and "worried wealthy" to "affluent greys".

Class divide is back in fashion

Billionaire Warren Buffett's investment firm Berkshire Hathaway has reported a sharp rise in profits thanks in part to strong returns on derivative contracts, reports the BBC News.

Warren Buffett's Berkshire Hathaway sees profits jump

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