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City taken by surprise as Bank of England’s figures herald end of recession

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Comments

  • bendix
    bendix Posts: 5,499 Forumite
    Really2 wrote: »
    It is, but you were never going to feel it like the people in the 30's. It is just a case of in terms of GDP.

    We were never going to suffer like the 30's, like some on here would have had you believe last year.


    They still post like that Really. It's all very charming and picaresque to compare this 'recession' to the 30s, but try as I might I'm damned if I can see any hunger marchers walking streaming down Liverpool Street this morning.
  • Jonbvn
    Jonbvn Posts: 5,562 Forumite
    Part of the Furniture 1,000 Posts
    bendix wrote: »
    Perhaps there is no 'truth' Graham. We've never been in a situation like this, so there is nothing to compare it too. In the 1930s the world was simple - today there is so much data around, globalisation, computerisation and other influences which often override the economic fundamentals.

    People talk about unemployment rising, but that seems to ignore the fact that vast numbers of people are STILL working and doing quite well with lower prices, low interest rates etc and - of course - some indicators suggesting property prices have bottomed and share prices have rallied. After 9 months of feeling very insecure, those people in jobs will likely start feeling more confident and will be shopping again.

    Often it is this sentiment change which drives the economy, rather than the other way around.

    Excellent post, which eloquently outlines how I perceive this recession.

    Such thinking may drive some of the TFH (tin-foil hats) over the edge.;)
    In case you hadn't already worked it out - the entire global financial system is predicated on the assumption that you're an idiot:cool:
  • Thrugelmir
    Thrugelmir Posts: 89,546 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    bendix wrote: »
    They still post like that Really. It's all very charming and picaresque to compare this 'recession' to the 30s, but try as I might I'm damned if I can see any hunger marchers walking streaming down Liverpool Street this morning.

    Maybe a danger of a "European" underclass developing though.

    Easy for those in jobs, who own homes, benefit from positive savings rates to feel smug.

    Germany in the early 30's was a breeding ground for discontent.
  • bendix
    bendix Posts: 5,499 Forumite
    Jonbvn wrote: »
    Excellent post, which eloquently outlines how I perceive this recession.

    Such thinking may drive some of the TFH (tin-foil hats) over the edge.;)


    I can remember when I first started posting on here, many members were discussing their plans to hoard tinned food for when it really got bad. Good God - at what point in our modern history did we all start to lose the sense of perspective and, most importantly, critical thinking?
  • Really2
    Really2 Posts: 12,397 Forumite
    10,000 Posts Combo Breaker
    edited 20 August 2009 at 8:52AM
    Feel free to explain to me your feelings on this, and why this kind of growth is a good thing, as on this subject, I'm open to thoughts!

    As bendix put it
    Often it is this sentiment change which drives the economy, rather than the other way around.

    It is the kick start for "real" growth. without stimulus we could have been in it for a hell of a lot longer, in the mean time the banks etc. would have been getting sicker and sicker due to asset prices falling and more and more defaults on loans.

    To be honest anyone not wanting growth must be mad or masochistic, a recession is a great threat to anyone's wealth not just home owners.
  • bendix
    bendix Posts: 5,499 Forumite
    edited 20 August 2009 at 8:58AM
    Thrugelmir wrote: »
    Maybe a danger of a "European" underclass developing though.

    Easy for those in jobs, who own homes, benefit from positive savings rates to feel smug.

    Germany in the early 30's was a breeding ground for discontent.

    Germany in the early 30s was an entirely different beast from the west in the 2000s. Come off it.

    People were hungry then. They were more politically charged. They were less dumbed down by benefits, Sky TV and Hello magazine.

    Yes, there will be an underclass as there always has been, even in the most positive economic times. But the nature of that underclass is - and always will be - very different to that in the 1930s. It is an underclass that is getting fatter, not angrier. It is an underclass that is socially alienated, not politically charged. And it is an underclass more fixated on Monster Munch and Chocolate Hobnobs, than revolution.
  • Graham_Devon
    Graham_Devon Posts: 58,560 Forumite
    Part of the Furniture 10,000 Posts Combo Breaker
    Well this would have been a good post, but it's just turned into bear baiting again.
  • bendix
    bendix Posts: 5,499 Forumite
    You're wrong Graham. It is a good thread, and noone is bear-baiting. It is a rational discussion. Don't walk away from it.
  • Really2
    Really2 Posts: 12,397 Forumite
    10,000 Posts Combo Breaker
    Well this would have been a good post, but it's just turned into bear baiting again.

    Sorry Graham you are wrong there, it would be like saying Thrugelmir is bull baiting, by mentioning Germany in the 30's.

    We all know what political party that emerged from that and what happened.
    Bendix as a fair point today's western society does not have a belly for social change and revolution.

    The closest you will see to that is emerging nations (but even they are most probably to advanced now to go through such a revolution and their populations too educated.)
  • mbga9pgf
    mbga9pgf Posts: 3,224 Forumite
    Really2 wrote: »
    It is, but you were never going to feel it like the people in the 30's. It is just a case of in terms of GDP.

    We were never going to suffer like the 30's, like some on here would have had you believe last year.
    It would have felt like the 30's if the BOE didnt engage in a bigger QE process that the Bank of Japan did and the Fed has (as a proportion of GDP).

    The pain hasnt even started yet. Just wait till we get forced to run a balanced budget.
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