More doom

ad44downey

There hasn't been nearly enough doom today, so here's a bit more.

If you think this is just another recession like the 1980's or 1990's then think again.

http://news.bbc.co.uk/1/hi/business/7934920.stm

Worst crisis since 1930s says Fed


US Federal Reserve chief Ben Bernanke says the world is suffering from the worst financial crisis since the 1930s.
Mr Bernanke argues that the roots of the current global economic downturn stem from global imbalances in trade and flows of capital in the late 1990s.
In a speech to the Council on Foreign Relations, he argues that the US and its trading partners did not do enough to redress these imbalances.
He also says future economic recovery depends on financial stability.
'Chronic' imbalances

Until we stabilise the financial system, a sustainable economic recovery will remain out of reach


Ben Bernanke, Federal Reserve chairman

Mr Bernanke says the imbalances "reflect a chronic lack of saving relative to investment in the US and some other industrial countries, combined with an extraordinary increase in saving relative to investment in many emerging markets."
As a result, saving flowed into developed economies for more than a decade, despite low interest rates, he argues.
Risk management systems in the private sector and government regulation then failed to "ensure that the inrush of capital was prudently invested," he says.
Forceful action



Mr Bernanke calls for "forceful, coordinated" action to combat the financial crisis.
"Until we stabilise the financial system, a sustainable economic recovery will remain out of reach," he says.
Well-capitalised financial institutions are essential for any such recovery, he adds, before reiterating the Fed and the US Treasury's determination to "take any necessary and appropriate steps" to ensure that such organisations can function properly.
He outlines four areas that need to be addressed to ensure that a similar crisis does not develop in the future.
• The problem, often referred to as 'too big to fail', whereby an institution gets so big that its failure has serious consequences for the whole financial system.
• Financial rules and conventions - on trading, payments and clearing, for example - that underpin the financial system
• Regulation and accounting policies
• The creation of an authority to monitor and address systemic risk
Stimulus package
The US government has already taken a number of measures to combat the economic downturn sparked by the financial crisis.
Last month, the new Obama administration signed into law an economic stimulus plan worth about $787bn (£548bn).
The package included tax cuts, additional spending on infrastructure and aid to US states, which are having their own budget difficulties.
The Fed has also cut US interest rates down to between zero and 0.25% to try and stimulate consumer spending.
Mr Bernanke will be meeting other G20 finance ministers and central governors in the UK this weekend to try and agree a collective response to the economic crisis, ahead of the London G20 summit in April.

BenL

yeah the day started off with RICS saying about increased interest in the housing market.

I was disgusted on my way to work listening to the radio.

Lets stamp down with some more doom news!

BlondeHeadOn

We're all dooooomed.......

Wasn't Ben Bernanke a bit of a player in all this? Should he not take at least a bit of the blame?

chucky

ad44downey wrote: »

There hasn't been nearly enough doom today, so here's a bit more.

If you think this is just another recession like the 1980's or 1990's then think again.

everyday should be like this

FTSE up 4.88%
Dow up 4.34%

Dan:_4

ad44downey wrote: »

There hasn't been nearly enough doom today, so here's a bit more.

If you think this is just another recession like the 1980's or 1990's then think again.

http://news.bbc.co.uk/1/hi/business/7934920.stm

Worst crisis since 1930s says Fed


US Federal Reserve chief Ben Bernanke says the world is suffering from the worst financial crisis since the 1930s.
Mr Bernanke argues that the roots of the current global economic downturn stem from global imbalances in trade and flows of capital in the late 1990s.
In a speech to the Council on Foreign Relations, he argues that the US and its trading partners did not do enough to redress these imbalances.
He also says future economic recovery depends on financial stability.
'Chronic' imbalances

Until we stabilise the financial system, a sustainable economic recovery will remain out of reach


Ben Bernanke, Federal Reserve chairman

Mr Bernanke says the imbalances "reflect a chronic lack of saving relative to investment in the US and some other industrial countries, combined with an extraordinary increase in saving relative to investment in many emerging markets."
As a result, saving flowed into developed economies for more than a decade, despite low interest rates, he argues.
Risk management systems in the private sector and government regulation then failed to "ensure that the inrush of capital was prudently invested," he says.
Forceful action



Mr Bernanke calls for "forceful, coordinated" action to combat the financial crisis.
"Until we stabilise the financial system, a sustainable economic recovery will remain out of reach," he says.
Well-capitalised financial institutions are essential for any such recovery, he adds, before reiterating the Fed and the US Treasury's determination to "take any necessary and appropriate steps" to ensure that such organisations can function properly.
He outlines four areas that need to be addressed to ensure that a similar crisis does not develop in the future.
• The problem, often referred to as 'too big to fail', whereby an institution gets so big that its failure has serious consequences for the whole financial system.
• Financial rules and conventions - on trading, payments and clearing, for example - that underpin the financial system
• Regulation and accounting policies
• The creation of an authority to monitor and address systemic risk
Stimulus package
The US government has already taken a number of measures to combat the economic downturn sparked by the financial crisis.
Last month, the new Obama administration signed into law an economic stimulus plan worth about $787bn (£548bn).
The package included tax cuts, additional spending on infrastructure and aid to US states, which are having their own budget difficulties.
The Fed has also cut US interest rates down to between zero and 0.25% to try and stimulate consumer spending.
Mr Bernanke will be meeting other G20 finance ministers and central governors in the UK this weekend to try and agree a collective response to the economic crisis, ahead of the London G20 summit in April.

Oh dear. Getting a bit desperate for 'doom' downey?

StevieJ

[SIZE=+1]Au Contraire Fatty pig.

London close: Bullish Bernanke boosts Footsie

[/SIZE]finished with stellar gains Tuesday after climbing in early dealings then racing ahead in line with the US after Federal Reserve chairman Ben Bernanke predicted recession would end this year.

http://uk.biz.yahoo.com/090310/214/ii8h7.html

ad44downey

I must be missing something. I thought the FT-SE 100 was down about 50% in the last year or so . Now it goes up 5% in one day and the crisis is over. haha

Dan:_4

ad44downey wrote: »

I must be missing something. I thought the FT-SE 100 was down about 50% in the last year or so . Now it goes up 5% in one day and the crisis is over. haha

but when it goes down 5% in one day it's the end of the world :rolleyes:

StevieJ

Better than it going down 5%, we will take any small victories

Graham_Devon

StevieJ wrote: »

Better than it going down 5%, we will take any small victories

You could claim this one too then! Female presenter on Radio 5 this morning ramping the property market. She said things are obviously moving and getting back to normal, as the house next to her is up for sale and the one opposite her has sold!

She stated, maybe it is the best time to buy, it certainly seems to be.

Good news all round. The BBC presenter had a house sell opposite her, buy buy buy! Quick!

thriftybabe

I am almost sure Bernanke was quoted as saying that America should see recovery in 2009/10. I will go and check and come back.