"Oversupply the cause of house price crashes"

shortchanged_2

chucky wrote: »

you see, you don't understand... i've never said that, that's what you're saying. so no, that's not what i said.

i'm such a good guy, here's a brief explanation of recession for you from wikipedia
http://en.wikipedia.org/wiki/Recession
hope that helps

That's fine chucky, but I am saying that if oil prices continue to rise it will CAUSE the UK to go back into recession.

There a nice simple answer for you instead of all your convoluted avoidance strategies.

chucky

shortchanged wrote: »

That's fine chucky, but I am saying that if oil prices continue to rise it will CAUSE the UK to go back into recession.

how can the price of a soft commodity priced in US dollars be the cause of a recession???

GDP is calculated where private consumption + gross investment + government spending + (exports − imports) and there is no growth.

there a few more factors than the oil price to CAUSE a recession.
there can be a high oil price and there not be a recession in the UK like in 2007

shortchanged wrote: »

There a nice simple answer for you instead of all your convoluted avoidance strategies.

i suggest you get some further education instead of trying to be an armchair economist. you're not doing too great...

please try again

shortchanged_2

By the way chucky you're not Vicki Pollard by any chance are you? Yeah but, no but.

chucky

shortchanged wrote: »

By the way chucky you're not Vicki Pollard by any chance are you? Yeah but, no but.

no sorry to disappoint - btw you're not Jason Dodd, the lad that used to sit at the back of my class who was as thick fook who nobody used to talk to because he had poor hygene?

come back to me when you have a coherent argument trying to claim that high oil price = negative growth in the UK economy.

shortchanged_2

chucky wrote: »

no sorry to disappoint - btw you're not Jason Dodd, the lad that used to sit at the back of my class who was as thick fook who nobody used to talk to because he had poor hygene?

come back to me when you have a coherent argument trying to claim that high oil price = negative growth in the UK economy.

Have a read of this then chucky and there are plenty more around.

http://peakoil.com/consumption/wsj-financial-times-raise-issue-of-oil-prices-causing-recession/

chucky

shortchanged wrote: »

Have a read of this then chucky and there are plenty more around.

http://peakoil.com/consumption/wsj-financial-times-raise-issue-of-oil-prices-causing-recession/

i don't necessarily disagree with a lot of stuff on there but all you've done for the last 15 posts is tell me that oil prices cause recessions because you've seen it on web sites - how about putting together an argument that is valid and plausible instead of i've seen it on various conspiracy based websites that contains data selected just to make the point to promote themselves.

shortchanged_2

chucky wrote: »

i don't necessarily disagree with a lot of stuff on there but all you've done for the last 15 posts is tell me that oil prices cause recessions because you've seen it on web sites - how about putting together an argument that is valid and plausible instead of i've seen it on various conspiracy based websites that contains data selected just to make the point to promote themselves.

No all the articles do is back up my own opinion.

My valid and plausible argument is that it is common sense.

What happens to a bubble, it eventually bursts. Everything gets to a point where it is no longer sustainable (this is particularly so when a rapid rise happens).

The western world is so dependent on oil to the extent that it is hugely influencial on our economies. When oil prices are high and rising it can be a major driver of inflation (what is happening in the UK now) and generally has a negative impact on both household and business budgets.

To put it simply chucky. High oil prices ultimately means less money in the pockets of nearly everyone. Therefore people have less spending power, the result being.......................reduced growth.

HAMISH_MCTAVISH

shortchanged wrote: »

High oil prices ultimately means less money in the pockets of nearly everyone. Therefore people have less spending power, the result being.......................reduced growth.

The same fallacious argument is used for housing.

It's equally invalid there too.

Spending is spending, it's still growth no matter which segment of the market gets it. Spending on oil or housing is no different to spending on food or imported chinese tat.

chucky

HAMISH_MCTAVISH wrote: »

The same fallacious argument is used for housing.

It's equally invalid there too.

Spending is spending, it's still growth no matter which segment of the market gets it. Spending on oil or housing is no different to spending on food or imported chinese tat.

it's not getting through Hamish - some people just won't lisen

chucky wrote: »

how can the price of a soft commodity priced in US dollars be the cause of a recession???

GDP is calculated where private consumption + gross investment + government spending + (exports − imports) and there is no growth.

shortchanged_2

HAMISH_MCTAVISH wrote: »

The same fallacious argument is used for housing.

It's equally invalid there too.

Spending is spending, it's still growth no matter which segment of the market gets it. Spending on oil or housing is no different to spending on food or imported chinese tat.

So tartan boy if people have to cut back on holidays, buying luxury items and reduce spending in the supermarkets just so they afford to put petrol in their cars to get back and fore to work. That's growth is it?