Worst slump since Great Depression warning.

tomstickland

http://www.telegraph.co.uk/finance/comment/edmundconway/3227454/Worst-slump-since-Great-Depression.html

Davesnave

It may begin to occur to some people that the world's ability to sustain ever-increasing growth & development has reached its limit. Unbridled capitalism is failing and no one is sure what to put in its place.

The question is whether the political destabilisation that will accompany the global recession can be managed, never mind the financial crises which are still unfolding on a daily basis.

kennyboy66_2

then perhaps this will happen;

http://business.timesonline.co.uk/tol/business/columnists/article4974535.ece

roddydogs

Shall we all commit suicide now?

baby_boomer

Telegraph - Do our rulers know enough to avoid a 1930s Great Depression

".....Lord (Adair) Turner, the head of Britain’s Financial Services Authority, offers soothing words. “There is no chance of a 1929-33 depression. We know how to stop it happening again,” he said.

I hope Lord Turner is right, but his Olympian certainty bothers me. It assumes that the economic elites a) understand what happened in the 1930s – on that score I suspect that few, other than the Fed’s Ben Bernanke, have delved into the scholarship (sorry, Galbraith’s pot-boiler The Great Crash does not count)...."

"....The commodity and emerging market booms are breaking in unison, leaving no more bubbles left to burst. Almost every corner of the world is now being drawn into the vortex of debt deflation The freight rates for Capesize vessels used to ship grains, coal, and iron ore have fallen 95pc to $11,600 since May....

......shipping is slowing as fast as it did in the grim months of late 1931..."

Could our rulers answer the MSE conundrum? Are we heading for deflation or inflation?

moanymoany

kennyboy66 wrote: »

then perhaps this will happen;

http://business.timesonline.co.uk/tol/business/columnists/article4974535.ece

I read and I hear that lowering interest rates is the answer, but is it? In the US the interest rates are 1 1/2% and it is still not making the difference people say it will. And what about Japan - they had 0% interest and that certainly didn't have the desired effect.

Also, what is the interest rate - oh I know there is the intrerest rate that comes out of the BOE - but where do you see that? LIBOR? Interest on savings? On credit cards - etc. etc. etc? No.

It will be interesting to see the results. One certain result is that the prudent who have lived within their means and saved a few pounds are ONCE AGAIN going to suffer! :mad:

Not that long ago we thought 4% was the most AMAZING interest rate we had ever seen!

amcluesent

>the prudent who have lived within their means and saved a few pounds are ONCE AGAIN going to suffer!<

IMHO, you're not well advised to declare/keep bullion on-shore; remember that 'hoarding' gold was illegal in the Great Depression and all such assets were stolen by the State.

Realy

moanymoany wrote: »

It will be interesting to see the results. One certain result is that the prudent who have lived within their means and saved a few pounds are ONCE AGAIN going to suffer! :mad:
[?quote]

Suffer I thoght their was just a bank bailout?:rolleyes:
Also would you (or your children) not suffer without a job?

Again HPC look as far as the pimple on their end of their nose.

kennyboy66_2

Realy wrote: »

moanymoany wrote: »

It will be interesting to see the results. One certain result is that the prudent who have lived within their means and saved a few pounds are ONCE AGAIN going to suffer! :mad:
[?quote]

Suffer I thoght their was just a bank bailout?:rolleyes:
Also would you (or your children) not suffer without a job?

Again HPC look as far as the pimple on their end of their nose.

But, but, but - the borrowers haven't suffered enough yet, I don't care if unemployment hits 4m, I want people who over-stretched themselves to burn.

I suspect too many peoples reference for the 30's depression is The Waltons