MSE News: Britain 'at risk of new recession'

Former_MSE_Helen

This is the discussion thread for the following MSE News Story:

"Britain is at risk of another recession and the economy may already be shrinking, a senior Bank of England figure warns ..."

Read the full story:

Britain 'at risk of new recession'




This thread is not in the 'discuss house prices and economy board' as that is only open to those logged into the forum so anyone coming from the news story may not be able to see it.

Consumerist

At this point, going into an official "recession" will just be giving a name to what is already happening in our economy.

spadoosh

Consumerist wrote: »

At this point, going into an official "recession" will just be giving a name to what is already happening in our economy.

I agree and scare mongering doesnt really help. This is the view of one guy who clearly says he doesnt have a clue how things are going to go. He basically just says if it goes bad in europe itll go bad here, i am disheartened this gentleman gets paid lots to work these things out.

tinker15

Personally I do not feel that we have ever come out of the recession, but thats just my opinion.

torbrex

The BOE keeps on saying they are pumping money into the economy by using quantitative easing but all that does is put people and businesses into even more debt as the only way they can get access to this extra money is by borrowing it.
This country needs to get back on a firm financial footing not by borrowing more but by paying back more.
With interest rates so low, there is no insentive to pay back the loans that are outstanding, in fact the low rates are encouraging more loans to be taken. The rates need to be put back to a level that will force people to pay back their debt rather than ignore it, if this means difficulties for some, too bad, they should have been more selective with their borrowing.

worldtraveller

Talk about stating the patently bloody obvious, IMHO. I would very much doubt we will see positive growth in Q3, let alone Q4.

"Obviously there is the risk of another recession and it's higher than one might have thought a few months ago."

"....one might have thought....?" Does that mean himself, or does it include most of the other pointless, overpaid, ivory-towered economists who don't seem to have a clue?

JuicyJesus

torbrex wrote: »

With interest rates so low, there is no insentive to pay back the loans that are outstanding, in fact the low rates are encouraging more loans to be taken

I have a variable rate loan that is set at a few percent above base interest wise. With interest rates so low, I'm happy as a pig in sh*t - my debt gets paid down much quicker. There is a very strong incentive there - with base set at 0.5%, the more money I throw at this particular debt right now the quicker it gets paid off overall.

Back on topic: George Osborne is a moron.

MiserlyMartin

torbrex wrote: »

The BOE keeps on saying they are pumping money into the economy by using quantitative easing but all that does is put people and businesses into even more debt as the only way they can get access to this extra money is by borrowing it.
This country needs to get back on a firm financial footing not by borrowing more but by paying back more.
With interest rates so low, there is no insentive to pay back the loans that are outstanding, in fact the low rates are encouraging more loans to be taken. The rates need to be put back to a level that will force people to pay back their debt rather than ignore it, if this means difficulties for some, too bad, they should have been more selective with their borrowing.

Spot on post.

temporary1

torbrex wrote: »

The BOE keeps on saying they are pumping money into the economy by using quantitative easing but all that does is put people and businesses into even more debt as the only way they can get access to this extra money is by borrowing it.
This country needs to get back on a firm financial footing not by borrowing more but by paying back more.
With interest rates so low, there is no insentive to pay back the loans that are outstanding, in fact the low rates are encouraging more loans to be taken. The rates need to be put back to a level that will force people to pay back their debt rather than ignore it, if this means difficulties for some, too bad, they should have been more selective with their borrowing.

Absolutely.
Two and a half years of no interest rates and this is what it's achieved. What a wonderful success for the banks, property groups and foreign corporations.
Impoverished 'third world' slavery, generational servitude, and the enforced submittal to a dominant, wealthy landowning class is on its way back. So much for, "we're all equally in 'this' together", - 'this' has already been bought and sold away.
I'd say it's all going according to plan for the New World Order.

Butterfly_Brain

People on this board have been saying this for nearly 2 years, but when an economist says it everybody listens.
We never truly got out of recession and we have been in stagflation for months, so it comes as no surprise to me.

tagq2

What if there were no base interest rate? (What if there were no fractional reserve banking or the practice were considered a crisis measure rather than routine behaviour?)

What if the FSCS maximum compensation amount were reduced to what the state thinks are adequate minimum savings to not require state help, i.e. £16,000? (What if people took more account of a bank's responsibility in deciding whether to save or invest there?)

Or what if I were allowed to borrow directly from the Bank of England? (What if commercial banks did not have special treatment?)

(And now for a potentially very unpopular what-if...) What if business owners, including shareholders, were personally liable for the debts of their business? (What if the state did not create artificial protections from responsibility?)

There are many protests popping up making clear what people are against. Will there appear a movement indicating what people are for?