UK Q4 GDP contracts unexpectedly by 0.5 pct qq

Mallotum_X

Butterfly_Brain wrote: »

It just proves that the Tories policy of cut , cut and cut deeper isn't working they should have concentrated on encouraging the economy to grow instead of slashing everything in sight

I dont think is proves anything, Im not a Tory supporter as such but I do agree with cutting spending. The only way to balance the books is to spend less than we earn. Maybe an alternative view is that it proves the recovery started under the last government wasnt real and that the moment the props are taken away we get on with the recession.

Whether this is on a personal level or country level if you spend what you dont have eventually you go bankrupt, hopefully we can avoid that particular problem.

worldtraveller

adr0ck wrote: »

seems that the people that didn't were all nice and cosy in their heated fancy office buildings

Yup, just like the 33 economists in Bloomberg News Survey that were forecasting a median 0.5% RISE in GDP! :doh:

I just wonder what planet the one's that were forecasting a rise above the 0.5% median level where on, let alone the vast majority of the rest!

angrypirate

Joeskeppi wrote: »

Where's all the rate rise enthusiasts?

Im still all for a rate rise. Will cause a short sharp shock to the system, but will allow for the recovery to come along sooner.

Butterfly_Brain

More job losses to come ...how is that going to aid growth? Fewer jobs = less tax revenue but more needed to pay in benefits = vicious circle

abaxas

Butterfly_Brain wrote: »

More job losses to come ...how is that going to aid growth? Fewer jobs = less tax revenue but more needed to pay in benefits = vicious circle

Having more jobs does not increase GDP.

Investing does.

Blacklight

Oh dear, that's the end of interest rates and for sale signs. You're lucky if you've bought a place recently but I can see estate agents windows becoming very, very empty indeed in the coming months.

House prices will skyrocket if we go back into recession.

Mallotum_X

Butterfly_Brain wrote: »

More job losses to come ...how is that going to aid growth? Fewer jobs = less tax revenue but more needed to pay in benefits = vicious circle

Government jobs dont generate new tax revenues they spend them, and are you really saying govenment jobs aid growth?

So the argument is we give people jobs we dont need them to do for wages we cant afford to pay to avoid some benefits...

I think this is just the wrong way round, whilst we do need to spend some money on job creation, that should be spent on attracting private sector firms to create new jobs, not more government roles.

That way the money spent should actually generate new tax revenues which will help rather than just spend them on more crackpot government schemes.

abaxas

Blacklight wrote: »

Oh dear, that's the end of interest rates and for sale signs. You're lucky if you've bought a place recently but I can see estate agents windows becoming very, very empty indeed in the coming months.

House prices will skyrocket if we go back into recession.

Please stop eating matches. The sulphur appears to have addled you brain.

AD9898_2

I have no idea why these figures are 'unexpected', with inflation rising, hammering peoples disposable income, personal indebtedness off the scale, it's no surprise at all and pretty much what I've been saying for months and months.

The crisis that started in Autumn 2007 was just the beginning, governments have thrown everything including the kitchen sink at the problem to no avail, albeit a temporary reprieve.

We are now in a position where the pound is falling, inflation rising, IRs that can't go lower. What's left to do ? Anymore threat of QE will send the pound tanking and inflation rising further.

This is precisely why I've said this economic crisis will be unlike any other. With inflation, indebtedness, sterling weakness and the added problem of peak oil, we are witnessing a perfect storm. And as I've said again on numerous occasions, only people with their 'head buried in the sand', who refuse to accept facts deny the grave position we are in.

davilown

Asking House prices may skyrocket if we go back into recession, Actaul Sold won't.