Chancellor of the Exchequer Alistair Darling says the U.K. could be facing the worst economic conditions in 60 years

Alistair Darling, the UK Chancellor of the Exchequer said the U.K. could be facing the worst economic conditions in 60 years. In the US, we tend to not pay attention to what's happening in the other parts of the world, but this is significant. Europe, and especially the UK is being hit hard by the economic slowdown. They are close to a recession, have inflation double the target rate, and expect to have 2 million jobless by Christmas.

The Guardian writes:

"In a candid interview in today's Guardian Weekend magazine, Darling warns that the economic times faced by Britain and the rest of the world "are arguably the worst they've been in 60 years". To deepen the sense of gloom, he adds: "And I think it's going to be more profound and long-lasting than people thought."

It wasn't just real-estate in the US that was overvalued. Prices in the UK, Spain, Australia, and many other countries were also at unsustainable levels. The drop in those prices, along with the shocks from the US have put a dent on the global economy. Combine that with high oil and there is significant weakness abroad.

Global growth is slowing which has helped the US dollar but which will hurt US exports, which are largely responsible for most of the growth we've experienced recently. Expect the slowing global growth to show up as weaker GDP in the next couple of quarters.