GDP shrinks at fastest rate for 60 years

Andrew64

This is very bad. But it still doesn't feel very bad. Is there worse to come?

http://www.ft.com/cms/s/0/bb6b9d4e-77b8-11de-9713-00144feabdc0.html

GDP shrinks at fastest rate for 60 years

"Britain’s economy contracted in the second quarter, marking a full year of decline sharper than any since the 1930s barring that of second world war and its aftermath. Economic output fell by 0.8 per cent quarter-on-quarter in the three months to June, after a 2.4 per cent decline in the first quarter, according to the Office for National Statistics’ “flash” first estimate of GDP."

"Colin Ellis, economist at Daiwa Securities, noted that the economy has now shrunk by 5.7 per cent from peak to trough"

Graham_Devon

It could be worse.

Conrad

For the first time a few people at a neighbours BBQ told me they were concerned about thier jobs. On the other hand they have a good amount of equity and v low payments so I don't think it will devastate any of them so the comparison with the 30's is a bit overdone as the masses didn't have huge cushions of equity nor parental wealth to get them through.

Crash_Over

Andrew64 wrote: »

This is very bad. But it still doesn't feel very bad. Is there worse to come?

Dramatic headline. It conjours up images of how poor people were in 1949.

And no, it doesn't feel very bad.

But if we lose 5/6% of GDP, it only takes us back to the GDP of say 2006/7.

I don't think anyone felt particularly deprived 2/3 years ago.

mbga9pgf

We havent had the worst of it. Hangover still to come = massive cuts in state sector spending and reduction in public services

inspector_monkfish

Conrad wrote: »

For the first time a few people at a neighbours BBQ told me they were concerned about thier jobs. On the other hand they have a good amount of equity and v low payments so I don't think it will devastate any of them so the comparison with the 30's is a bit overdone as the masses didn't have huge cushions of equity nor parental wealth to get them through.

and we didnt have bbq's in the 30's
did we??

nearlynew

Conrad wrote: »

For the first time a few people at a neighbours BBQ told me they were concerned about thier jobs. On the other hand they have a good amount of equity and v low payments so I don't think it will devastate any of them so the comparison with the 30's is a bit overdone as the masses didn't have huge cushions of equity nor parental wealth to get them through.

Equity. Equity. Equity.
I'm sick of hearing people measuring their "wealth" by their "equity"

People don't have money any more. They have "equity"

But "equity" can only be "realised" by selling.

"MEWing" or "housing equity withdrawal" or "unlocking the capital in your home" or whatever else you want to call it is just more borrowing.

Debt is the new wealth.

Sad and pathetic in equal measure.

mbga9pgf

have huge cushions of equity nor parental wealth to get them through.

huge cushion of equity = parental wealth.

Now 20-25% down on last year.

dopester

Conrad wrote: »

For the first time a few people at a neighbours BBQ told me they were concerned about thier jobs.

Careful. Conrad-world has always been so cosy. Don't want you to wake up to the real world and begin thinking like a doomster, where you begin to recognise the serious challenges to our economy now the credit-expansion boom has ended.

thriftybabe

Graham_Devon wrote: »

It could be worse.

Not from where we are sitting at the moment!:eek:

lostinrates

Conrad wrote: »

For the first time a few people at a neighbours BBQ told me they were concerned about thier jobs. On the other hand they have a good amount of equity and v low payments so I don't think it will devastate any of them so the comparison with the 30's is a bit overdone as the masses didn't have huge cushions of equity nor parental wealth to get them through.

Was that the BBQ where they didn't want to indulge in deep conversation? They were probably to focused on their immeadiate concerns to challenge themselves in other ways then.