1929 - Could History repeat itself

BTman

Oh yes, the miracle economy...;)
It would be a miracle if everyone could afford to pay back the huge debt's they've racked up over the past decade when interest rates rocket....

sortofok

Wise words BT.

What do theysay about banks and umbrellas?

mr.broderick

they dont say it..you do..

come back meanmachine all is forgiven...at least your genuine meanie.

epz_2

in my opinion the housing correction will be more like the dot com crash which while bad for a limited number of employees and investors wouln't trouble the wider economy.

the real woes like japan were caused by businesses growing thier assets buy constantly remortaging them against ever more mental values. while there are inflation issues the underlying economy of the uk is belived to be sound.

also you need to factor in the perhaps fortunate timing of the baby boomers retiring soon, this will free up plenty of jobs and likely pension lump sums. downsizeing may add to a depressed housing market but against that you would likely see big cash sums hitting the economy as people start to enjoy their retirement.

nelly_2

epz wrote: »

the real woes like japan were caused by businesses growing thier assets buy constantly remortaging them against ever more mental values.

like houses here now?

epz_2

nelly wrote: »

like houses here now?

no, while the banking sector is onto a nice little earner they only get a fraction of a % more in profit from an increased turnover.

in japan most businesses would us land as a way to borrow ever greater amounts like 100x the feasable value and used these for dodgy investments, when the crash came it basicly flattened the economic base of the country. it also ended the job for life culture and wrecked consumer confidence, hence why they still have 0% interest rates 15 years later.