Are we in recession and have things changed from the last one we had?

Runnybabbit

Bit of a controversial thread, but how many remember the last recession we had .... All I can remember is the interest rate upping to 15% :eek: but don't remember anything else going sky high too.

Today we have gas, electric, food, petrol, to name a few. Do you think we are in recession, although the government tell us different ....... and if you could change anything what would you do ?

vangirl_2

I think to be classed as a recession the economy needs to take a down turn for 2 quarters. It feels like it though. if they can keep inflation down i think we will be ok. I think reasurance is needed as confidence is at an all time low. if businesses keep trading and dont make too many cuts we might avoid a recession.
I remeber the last recession, i was only young and i remember my mum crying saying that the bailiffs were coming to take our stuff away (we didnt have much anyway). That horrible feeling still comes back everytime a recession is mentioned.

Runnybabbit

Now that's the worrying thing, if businesses can keep afloat - if I spend my money on fuel, food etc, then I can't spend it in the shops to keep these businesses trading, so somethings going to have to give

vangirl_2

I am self employed in the haulage industry along with my hubby and even though we have increased our prices due to rising fuel costs we are still about 20% short on what we were last year. We cant afford to cut back anymore. We dont get clothes haircuts or any luxuries etc so have put what little money we have left into a small online shop. If thats doesnt work we will have to give up and get other jobs which is worrying cause we are both unskilled and living on minimum wage would be even worse cause we still have a business loan to pay off. Its really hard for small businesses to stay afloat at the mo and the banks wont help now either

ZTD

Yes, we are in recession, and yes we have been for a while. The reason the official figures don't say we are in recession is that inflation is comprehensively and deliberately understated.

For so many things to go up above the "average rate of inflation" is a joke similar to "80% of drivers think they drive better than average".

Dez-Titute

Runnybabbit wrote: »

Bit of a controversial thread, but how many remember the last recession we had .... All I can remember is the interest rate upping to 15% :eek: but don't remember anything else going sky high too.

Today we have gas, electric, food, petrol, to name a few. Do you think we are in recession, although the government tell us different ....... and if you could change anything what would you do ?

Hi Bunny with the runs,

Listen to this is it a prophesy.

http://www.youtube.com/results?search_query=you+aint+seen+nothing+yet+bachman+turner+overdrive&search_type=&aq=1&oq=you+aint+seen+nothin

vangirl_2

Come to think of it Runnybabbit is there an actual difference between being in a recession and the whole country thinking we are in a recession?

ManAtHome

The 15% BoE rates (1989) were before the recession kicked in then progressively dropped to 5.25% (1994) - history here http://www.moneyextra.com/dictionary/Interest-rate-history-003455.php

Scary thing this time is the number of people struggling with 5% due to the massive increase in personal and government debt. Debating whether we are in/will hit technical recession is a bit pointless (unless you're a politician or economist) - a prolonged slowdown will be at least as damaging.

How do we get out of it..? As we didn't follow the sensible course 4 years ago and set BoE rates and bank lending ratios at other than lunatic levels (and possibly lose the 2005 election...), we need to wind back the last few years of "boom/miracle" e-Con. Unfortunately that probably means a reduction in real/spendable incomes for a few years...

Runnybabbit

vangirl wrote: »

Come to think of it Runnybabbit is there an actual difference between being in a recession and the whole country thinking we are in a recession?

I'm not too sure either, all I know is that I've never been so damn hard up in all my life - I've done nothing but moan recently about the state of the economy - why I don't know - maybe because it's stopping me doing things that I want to do xx what about you ?

bluewomble69

I was recently over in the Republic of Ireland and you can't move for the TV, radio and papers talking about the death of the Celtic Tiger and the recession. Still seemed to be a fair amount of wealth floating about there to me though, though members of our family in retail report things as very quiet.

Runnybabbit

Oh and on top of all that I lost my 10% tax rate !!!! marvellous