The Times: The Depression of 2008..

PasturesNew

ginandtonic1988 wrote: »

I've just read the above posts to my daughter who is studying The Great Depression at school at the moment (how apt!!) She told me that the The Great Depression was in the 20's, I thought that it was the October 1929 stock market crash that started it? I didn't study history at school can someone stop our argument??!! I've just read some of the history of the depression lots of it mirror whats gone on recently, its really scary, could it happen again?

imho
You're right
She's wrong
School sucks

mewbie_2

Oh dear. I thought I'd Wiki a quick answer to when it started, and then found myself reading the stuff. I am no economic scholar, or indeed any type of scholar / historian / etc. so this is all new information to me. It sounds very similar indeed to our current situation. I am tempted to take up religion.

http://en.wikipedia.org/wiki/Great_Depression

lynzpower

PasturesNew wrote: »

10% of the country live in London.
Outside of London, most people don't give a toss about the Olympics really. It might make some nice TV for a few people when it's on.

Inside of London, most "normal" people dont give a toss either.

For many Londoners, the increased council tax and general upheaval for a white elephant at this point in the economic cycle makes zero sense at all.

What London needs is decent schools, decent hospitals, and decent social housing instead of the ratboxes that passes for acceptable accomodation for the low income. What london doesnt need is a "experience", a velodrome and a load of buildings costing the taxpayer a bomb for a few days jollies.

Ho hum, Ill just open my purse and just pay for it anyway shall I?

globalds

The eventual outcome will be higher interest rates .
I don't know how long it will take to get their, and how long we will ride on the tail of inflation to try and soften the effects .

WTF?_2

globalds wrote: »

The eventual outcome will be higher interest rates .
I don't know how long it will take to get their, and how long we will ride on the tail of inflation to try and soften the effects .

Yep - short term cuts will come at the expense of nasty hikes longer-term.

IRs were headed above 5.75% when all this credit crunch stuff forced them to start lowering them to save the banks' asses, in spite of inflation.

Right now we have inflation at more than 2.5x target and rising but we are almost certain to see sharp rate cuts in the name of stimulating economic activity and giving the banks more room to make money on margin.

This means that mid-long term the rates will be forced back up. Remember too that the government is looking at having to borrow massive amounts of money on the markets. That means they'll have to start offering higher returns on their bonds to get investors to put cash in.

A smart move for anyone on a mortgage might be to stick with SVR for now, or else get a 2-year tracker, and hope they can then get a longer term fix at the lowest point before rates go back up.

StevieJ

globalds wrote: »

The eventual outcome will be higher interest rates .
I don't know how long it will take to get their, and how long we will ride on the tail of inflation to try and soften the effects .

Not another Nostradamus who spreads his predictions over the next 1000 years, but in no particular order.

WTF?_2

StevieJ wrote: »

Not another Nostradamus who spreads his predictions over the next 1000 years, but in no particular order.

I didn't realise that in order to discuss house price and related issues here we had to have precise dates and times in mind...... :rolleyes:

globalds

StevieJ wrote: »

Not another Nostradamus who spreads his predictions over the next 1000 years, but in no particular order.

Any economy that can support higher interest rates would be better doing it sooner rather than later ...
Recessionary forces are the waves washing over the decks ...Inflation is the underlying Current ..

StevieJ

globalds wrote: »

Any economy that can support higher interest rates would be better doing it sooner rather than later ...
Recessionary forces are the waves washing over the decks ...Inflation is the underlying Current ..

Er no, commodity prices that have been driving inflation have collapsed since around July, wage increases are subdued, add to that recessionary dampening and you find that inflation will probably peak very soon and then fall dramatically.
You should be more worried about deflation.

StevieJ

!!!!!!? wrote: »

I didn't realise that in order to discuss house price and related issues here we had to have precise dates and times in mind...... :rolleyes:

Even I can predict that there will be one or two upturns and down turns sometime in the future.