‘No light’ at end of financial tunnel

David Scott said that four years on from the start of the credit crunch in August 2007, the United States and European governments still have to take tough and painful choices.

He said the flood of liquidity provided by the billions of pounds worth of taxpayer support for the financial system have “made a bad situation worse” by allowing politicians to duck difficult decisions.

Mr Scott warned: “Recession in the US and most of Europe looks inevitable as does the break-up of the euro in its current form.

“A single currency that was meant to forge ever-closer union between European nations has succeeded only in inflicting ever-larger divisions between its people who have a long history of disunity. It was said that nobody would ever be able to withdraw from the Gold standard and that leaving the exchange rate mechanism was not possible, both of which occurred leaving great turmoil behind.”

He predicted the FTSE would sink to new lows following the recent “suckers’ rally”.