Recession & unemployment

baby_boomer

MPC dove Blanchflower has been warning MPs that a UK recession is likely to be on us before we know it.

Guardian

"Tens of thousands of people could be laid off every week in the run-up to Christmas as the UK economy falls into recession, David Blanchflower of the Bank of England's monetary policy committee warned today.Blanchflower told MPs to expect "a large increase in unemployment", and warned that a "horrible surprise" could be just around the corner. The gloomy assessment sent shares in London falling, and also weakened sterling yet further against the dollar......"

Mind you - the Governor of the Bank of England is much more mindful of the inflation threat than Mr. Blanchflower.

Independent - Bank's MPC group at war over way to fight slump

Independent - Bank's credibility on the line?

> The stock of Gordon & his government may also fall further - if that's possible . The current line is to say that the economy is suffering because of global forces but it will come through because New Labour has made it strong enough.

> If it turns out, as the OECD and the EU are advising, that the UK is the only Western government which will suffer a recession, emperor Gordon will be naked for all to see.

Anyone for a stamp duty free house purchase this autumn ?

I notice that Home Retail has just slashed the valuation of its Home Base purchase by 70% as DIY sales plummet

dudleyboy

Blanchflower's pushing for that interest rate cut again I see.

Worry about inflation, Blanchflower, and leave the economics to GB and his miracle makers. They know what they're doing... :rolleyes:

posh*spice

I'm sure we are already in recession....:rolleyes:

dopester

If Blanchboy cared so much he wouldn't have voted for an interest rate cut in 2005, which Merv voted against.

Fuel that HPI baby yeah. Good times never end. Totally sustainable.

SDP

A few thousand today with XL and the other smaller holiday firms that have sadly lost their jobs today.

Dithering_Dad

SDP wrote: »

A few thousand today with XL and the other smaller holiday firms that have sadly lost their jobs today.

It's a double whammy to lose your job in the last quarter of the year. Christmas is on the way which is obviously an expensive time, but also everything seems to slow down, including recruitment, in anticipation.

I wonder how many of those ordinary people are BTLers? Probably more likely they're ordinary people on low-ish income who own or rent modest homes and are now caught up in the recession that many HPC people have been rubbing their hands in excitement for.

As I keep saying, be careful what you wish for.

kennyboy66_2

posh*spice wrote: »

I'm sure we are already in recession....:rolleyes:

I think you are right, although we will only know for sure in about 9 months time. The debate surely is only about how bad and deep the recession.

Still, there are plenty of nutters out there who want to see an increase in interest rates.

snoopy78

Dithering_Dad wrote: »

I wonder how many of those ordinary people are BTLers? Probably more likely they're ordinary people on low-ish income who own or rent modest homes and are now caught up in the recession that many HPC people have been rubbing their hands in excitement for.

As I keep saying, be careful what you wish for.

A recession that has resulted from the greed of HPI people, who rubbed their hands together with excitement as houses reached stupid heights.

Dithering_Dad

snoopy78 wrote: »

A recession that has resulted from the greed of HPI people, who rubbed their hands together with excitement as houses reached stupid heights.

I'm sure recessions are caused by a bit more than a few BTLers buying up apartments in Basingstoke. Factors such as a high oil price for instance.

dopester

Dithering_Dad wrote: »

and are now caught up in the recession that many HPC people have been rubbing their hands in excitement for.

As I keep saying, be careful what you wish for.

How predictable.

I nearly posted that immediately the news broke... "Whoopie.. just what !!!!!! and I wished for."

Fact is... it is what we saw job losses coming. This time that company broke mostly due to rising fuel costs - but in no short measure it will be job losses due to an economy so closely linked to incredible rates of house price inflation that is now deflating. If you want to dish out blame do it elsewhere,

If we wish it for happen, I presume your wish is for house prices to continue doubling every 7 years, and everything to be the perfect dream where everyone wins and can continue consuming with designer clothes, cars, holidays, and all kinds of luxuries.

I think you'll find that the artificial reality of that is now over.

dannyboycey

The fact that the UK no longer manufactures anything doesn't help matters. As a result, our economic fate has become intrinsically linked with the performance of other nations' economies.