The axing of accountants in the international business sector is a "canary in the coal mine" for the Island's economy, according to the Shadow Finance Minister.

Opposition MP Bob Richards said job losses at Ernst & Young announced last week as a consequence of the current economic crisis, were "worrying".

However economist Craig Simmons said people only have themselves to blame for the growing recession. The Bermuda College lecturer said the downturn is a consequence of a "greedy" generation, many of whom have bought up property at over-inflated prices.

Mr. Simmons said: "Our people should be concerned about the recession. It would be instructive to remember that recessions are pathological: they are the result of something gone wrong.

"The present recession has its roots in the avarice of 30 to 60-year-olds: their buying of property at inflated prices in the hope that some greater fool will take it off their hands; and their breaking of the link between those who sell mortgages and those who bear the risk of default.

"The lesson to be learned is that our success should be evaluated by what we have to give up in order to achieve that success. Wealth creation, as an individual pursuit, must fit into an acceptable social context. We have failed to provide our people and more particularly, entrepreneurs, with a social rule or metric that could guide economic behaviour."

An independent survey last week found fears over the economy have overtaken crime as the biggest issue facing Bermuda.

The Research.bm poll found a fifth of voters – 22 percent – believe the economy/unemployment is the number one concern, followed by crime, 19 percent, and housing, 11 percent.

Three months ago a similar poll found crime the predominant issue, at 32 percent, followed by the economy and unemployment at 20 percent. Fears over the economy are particularly marked among the younger generation.

While only 18 percent of voters surveyed in the 'Political Opinions Poll' are confident in the direction Bermuda is headed, this dropped to nine percent among 18 to 34-year-olds.

Almost two-thirds – 63 percent, lack confidence. This marks a jump of almost 20 percent on the last quarter, when 45 percent expressed little confidence.

Yesterday, Mr. Simmons said: "Most of the poll's respondents were probably too young to remember the last recession of 1989-1992. As a result, the poll's results may express a fear of the unfamiliar.

"Or it may be the case that the media have over-sensitised the public to the presence of the global recession, without providing a proper context or explaining the recession's causes and role in correcting market failures."

Mr. Richards said: "I guess people have been bombarded through the media, through network news and so on, and people want to know when it's going to hit us because there is a time lag.

"But I think people are right to be concerned. Bad economic prospects and crime are connected. As we get an increase in unemployment, I suspect we'll see an uptake in crime."

The MP said: "Bermuda has sailed along relatively untouched for decades and now these particular problems are much closer to our doorstep than ever before.

"I think international business is going to be OK, although I suspect there won't be much growth. But the recent lay-offs at Ernst & Young are a canary in the coal mine, because you would think accountants could always find work here.

"I wasn't surprised by the redundancies at the Fairmont Southampton, but was surprised by the job cuts at Ernst & Young. That's more worrying because it's in the core international business sector so it is a cause for concern.

"I do think we are going to have some great challenges in the months ahead, and can see this hitting the construction industry later this year."

Finance Minister and Deputy Premier Paula Cox is in Washington D.C. for the inauguration of President-elect Barack Obama, and was unavailable for comment yesterday.