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Recession Over - 1 Month to go??

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Comments

  • Cat695
    Cat695 Posts: 3,647 Forumite
    Dan: wrote: »
    Why woudn't people be happy about it? You think the general public WANT to stay in a recession?

    As for tax increases, sure it is on the cards - but a seperate issue to the UK recession status.


    tax increases (both household/business)= higher prices = more job losses/pensions being cut by businesses = more repossessions = more house price falls

    Just like it has done before
    If you find yourself in a fair fight, then you have failed to plan properly


    I've only ever been wrong once! and that was when I thought I was wrong but I was right
  • Dan:_4
    Dan:_4 Posts: 3,795 Forumite
    Part of the Furniture 1,000 Posts Combo Breaker
    Cat695 wrote: »
    tax increases (both household/business)= higher prices = more job losses/pensions being cut by businesses = more repossessions = more house price falls

    Just like it has done before

    Unlikley to filter through to more house price falls. Tax increases will only go up a couple of pence in the pound, so people will make the necessary lifestyle adjustments, and with the UK returning to growth, wages will increase over time.
  • Graham_Devon
    Graham_Devon Posts: 58,560 Forumite
    Part of the Furniture 10,000 Posts Combo Breaker
    Dan: wrote: »
    Unlikley to filter through to more house price falls. Tax increases will only go up a couple of pence in the pound, so people will make the necessary lifestyle adjustments, and with the UK returning to growth, wages will increase over time.

    Couple of pence in the pound for income tax, maybe.

    You are forgetting the wrath of other taxes. How convinient.
  • ad9898_3
    ad9898_3 Posts: 3,858 Forumite
    mitchaa wrote: »
    Even i agree with you there Graham, it seems ludicrous to me that a 0.01% growth can signal the official end of a recession.

    Not another 10 bloody years of Nu Labour, surely not:confused:

    The problem with claiming 0.01% growth, is it's very easy to slip back into -ve territory again. All I can say is I hope all this talk of recession ending isn't just that, 'all talk', for if we slip back into -ve again, not only will hope be destroyed, the people won't get fooled again.......cue Keith Moon fill.

    Seriously though, we have rising unemployment, huge tax hikes and public spending cuts, IR's creeping up and the government/media are telling us they have managed to turn the oil tanker around in super quick time.......... I ain't buying it either, lets see where we are at the end of the year.
  • Cat695
    Cat695 Posts: 3,647 Forumite
    Dan: wrote: »
    Unlikley to filter through to more house price falls. Tax increases will only go up a couple of pence in the pound, so people will make the necessary lifestyle adjustments, and with the UK returning to growth, wages will increase over time.


    People are already cutting back and thats with things like food and oil cheap......you can only cut back so much.

    and Dan you are well aware that we will get stealth taxed in every single way labour can find.....council tax will rise to claw back their losses, fuel is going to go through the roof (along with fuel tax rises) interests rates will rise so banks can start clawing back their money......food will rise/ VAT will go back up/car prices will rise, insurance will rise to cover the losses of people stopping or moving to cheap insurance (house/contents/car) cover and so on....pretty much everything will rise.

    so pleased don't be fooled into thinking a couple of pence isn't going to effect things

    they will all add up.....and thats what will cause the problems
    If you find yourself in a fair fight, then you have failed to plan properly


    I've only ever been wrong once! and that was when I thought I was wrong but I was right
  • Dan:_4
    Dan:_4 Posts: 3,795 Forumite
    Part of the Furniture 1,000 Posts Combo Breaker
    Cat695 wrote: »
    People are already cutting back and thats with things like food and oil cheap......you can only cut back so much.

    and Dan you are well aware that we will get stealth taxed in every single way labour can find.....council tax will rise to claw back their losses, fuel is going to go through the roof (along with fuel tax rises) interests rates will rise so banks can start clawing back their money......food will rise/ VAT will go back up/car prices will rise, insurance will rise to cover the losses of people stopping or moving to cheap insurance (house/contents/car) cover and so on....pretty much everything will rise.

    so pleased don't be fooled into thinking a couple of pence isn't going to effect things

    they will all add up.....and thats what will cause the problems

    This has always been the case....it's called inflation....but you have no evidence that this will cause a second house price crash.
  • chucky
    chucky Posts: 15,170 Forumite
    10,000 Posts Combo Breaker
    Generali wrote: »
    Economists.

    I disagree with their definition and prefer the end of a recession to be defined as when real GDP is back to the peak value.

    If GDP falls by 5% for 2 consecutive quarters and then rises by 0.1% in the third quarter that is supposed to be good news. Well I ain't buyin' it.
    Only trouble is, your then attacked as a negative bear! We could have 0.01% better results, and recession over.

    would you rather be in China's situation when they went from 12% to 6% - it's obviously not recession but that's got to be hurting the Chinese more?

    i agree with you so not trying to be pedantic but trying to get a balance of what hurts more moving from 0.5% to -2% or the Chinese example.
  • Cat695
    Cat695 Posts: 3,647 Forumite
    Dan: wrote: »
    This has always been the case....it's called inflation....but you have no evidence that this will cause a second house price crash.


    Erm thats inflation without even higher taxes just to pay for the reccession bailouts etc etc

    people won't get pay rises because businesses won't be able to afford it

    And the proof is in the last (big) reccession
    If you find yourself in a fair fight, then you have failed to plan properly


    I've only ever been wrong once! and that was when I thought I was wrong but I was right
  • chucky
    chucky Posts: 15,170 Forumite
    10,000 Posts Combo Breaker
    Cat695 wrote: »
    food will rise/ VAT will go back up/car prices will rise, insurance will rise to cover the losses of people stopping or moving to cheap insurance (house/contents/car) cover and so on....pretty much everything will rise.

    all these things will go back up in price and because the price was so low and it then goes up to "2007 prices" the hyper-inflation nutters will be out in force claiming they were right all along and had predicted it :cool:
  • ad9898_3
    ad9898_3 Posts: 3,858 Forumite
    It seems, if you believe the media that are economy is beginning to grow again, may I suggest that the foundation for this growing economy is QE, as there are no other economic pointers that suggest it's been built on anything else....... the question now seems to be, what happens when those temporary foundations are removed ?

    Or perhaps cynically I'm thinking they aren't going to be removed until a General Election ? Interesting times ahead, we had a fake 10 year boom built upon nothing more than cheap credit and debt, to sure up that boom they are using........wait for it........ cheap credit, debt and a new ingredient, freshly printed notes.

    It will end in tears, the only question is when ?
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