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The Times: The Depression of 2008..
WTF?_2
Posts: 4,592 Forumite
1 year ago the voices in the media were making out that everything was going great.
6 months ago, things might 'plateau' for a bit.
3 months ago, 'risk' of recession.
Now they're starting to talk openly about another great depression:
http://business.timesonline.co.uk/tol/business/economics/article4880829.ece
It's looking pretty clear, as the truth starts to sink in we can expect governments to pursue the most inflationary policies imaginable to stave a depression off. All bets are off as to the results.
6 months ago, things might 'plateau' for a bit.
3 months ago, 'risk' of recession.
Now they're starting to talk openly about another great depression:
http://business.timesonline.co.uk/tol/business/economics/article4880829.ece
Scary stuff. If we do get a deflationary depression then anyone carrying debt (including governments) is even more screwed than they already are.It was an era that brought some of Britain’s finest writers to a flurry of indignation. One railed against the “greedy, profit-grabbing system” and hoped to see “the people in the City all shoddy, bewildered, unhappy”. Does that sound familiar? Polly Toynbee, perhaps, turning her righteous fury on the financial masters of the universe who have pushed the banking system over the brink?
No, it was JB Priestley and the era was the Great Depression of the early 1930s, which shaped the 20th century more than any other economic event, creating the conditions for the rise of fascism in Europe.
During the financial tumult of the past three weeks a shocking question has been hanging in the air. Despite all the economic advances of the past half-century, is 2008 the start of another Great Depression? To understand the implications, one has to realise what happened nearly 80 years ago.
It's looking pretty clear, as the truth starts to sink in we can expect governments to pursue the most inflationary policies imaginable to stave a depression off. All bets are off as to the results.
--
Every pound less borrowed (to buy a house) is more than two pounds less to repay and more than three pounds less to earn, over the course of a typical mortgage.
Every pound less borrowed (to buy a house) is more than two pounds less to repay and more than three pounds less to earn, over the course of a typical mortgage.
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We're a long way from the 1930s. A very long way.
It could still happen and I do believe that we're in for a dose of deflation but a drop of 25% in GDP I doubt very much. A lot of people fail to realise just how bad things were in the 1930s.0 -
We're a long way from the 1930s. A very long way.
It could still happen and I do believe that we're in for a dose of deflation but a drop of 25% in GDP I doubt very much. A lot of people fail to realise just how bad things were in the 1930s.
thats because so many of us were not alive then :rolleyes: if you didnt see it it didnt happen
:beer: Well aint funny how its the little things in life that mean the most? Not where you live, the car you drive or the price tag on your clothes.
Theres no dollar sign on piece of mind
This Ive come to know...
So if you agree have a drink with me, raise your glasses for a toast :beer:0 -
Let's hope you are right.0
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We're a long way from the 1930s. A very long way.
It could still happen and I do believe that we're in for a dose of deflation but a drop of 25% in GDP I doubt very much. A lot of people fail to realise just how bad things were in the 1930s.
We are now a consumerist society which was not the case in the 1930s - so used to having what we want when we want it the slightest cut-back on luxury items seems to pinch. Until last summer we've never had it so good up and the impact of the downturn translates into an exaggerated response by the modern generation.Value-for-money-for-me-puhleeze!
"No man is worth, crawling on the earth"- adapted from Bob Crewe and Bob Gaudio
Hope is not a strategy
...A child is for life, not just 18 years....Don't get me started on the NHS, because you won't win...I love chaz-ing!0 -
VfM4meplse wrote: »We are now a consumerist society which was not the case in the 1930s - so used to having what we want when we want it the slightest cut-back on luxury items seems to pinch. Until last summer we've never had it so good up and the impact of the downturn translates into an exaggerated response by the modern generation.
I suspect you're right.0 -
Another thing that has changed is family size. In three generations since the 1930's the family size that had to be fed and clothed on one income and pin money has shrunk from several (6-9 or more) to fewer than 6 being usual. I think the next average was 2.4 children. I don't know what everyone would class as a luxury today but I suspect it means new clothes to one person and holidays abroad to another.No longer half of Optimisticpair
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The UK Great Depression will be in 2010.0
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:j Where there is a will there is a way - there is a way and I will find it :j0
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They couldn't do that last time, and they won't be able to this time.
Won't stop them trying though.
The 'answer' will increasingly come to be seen as 'strong but controlled' inflation and all fiscal policy efforts will be directed to that end.
As I said, all bets are off as to what actually happens when they try it. I don't think it's going to be anything good myself.--
Every pound less borrowed (to buy a house) is more than two pounds less to repay and more than three pounds less to earn, over the course of a typical mortgage.0
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