Debate House Prices


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REcession and tools to combat it...

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wymondham
wymondham Posts: 6,356 Forumite
Part of the Furniture 1,000 Posts Photogenic Mortgage-free Glee!
in Debate House Prices & the Economy
Hi All

I'm reading more and more about another recession about to arrive. If this is the case will it be a bigger problem than before since the tool of choice - interest rates, has already been maxed out and can't really go any lower to be of help???
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  • HAMISH_MCTAVISH
    HAMISH_MCTAVISH Posts: 28,592 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    wymondham wrote: »
    Hi All

    I'm reading more and more about another recession about to arrive. If this is the case will it be a bigger problem than before since the tool of choice - interest rates, has already been maxed out and can't really go any lower to be of help???

    Not sure why people think interest rates can't go lower.

    Sweden, amongst several others, has Negative Interest Rates.
    “The great enemy of the truth is very often not the lie – deliberate, contrived, and dishonest – but the myth, persistent, persuasive, and unrealistic.

    Belief in myths allows the comfort of opinion without the discomfort of thought.”
    -- President John F. Kennedy”
  • CLAPTON
    CLAPTON Posts: 41,865 Forumite
    10,000 Posts Combo Breaker
    print money and give it away

    build houses
  • Thrugelmir
    Thrugelmir Posts: 89,546 Forumite
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    Economies by their very nature will always be cyclical. The one certainty is that when the next recession strikes is that people will simply get on with life. No amount of lever pulling will halt it. If anything current policies are setting everything up for a harder fall. There's no easy answers.
  • michaels
    michaels Posts: 29,133 Forumite
    Part of the Furniture 10,000 Posts Photogenic Name Dropper
    Last recession we went from 30s % debt/gdp to 80s %. Corbynomics assures us that we should currently be 'borrowing to invest'. As our Greek friends would no doubt say, what could possibly go wrong?
    I think....
  • System
    System Posts: 178,353 Community Admin
    10,000 Posts Photogenic Name Dropper
    michaels wrote: »
    Corbynomics assures us that we should currently be 'borrowing to invest'. As our Greek friends would no doubt say, what could possibly go wrong?


    Governments never invest. They are congenitally incapable of understanding the concept. Investment is about spotting something that could turn in a nice profit and is merely lacking backing to prime it.
    Governments know only about pouring money into their own pet projects, which almost by definition represent the exact opposite of investment.
    This is a system account and does not represent a real person. To contact the Forum Team email forumteam@moneysavingexpert.com
  • Graham_Devon
    Graham_Devon Posts: 58,560 Forumite
    Part of the Furniture 10,000 Posts Combo Breaker
    michaels wrote: »
    Last recession we went from 30s % debt/gdp to 80s %. Corbynomics assures us that we should currently be 'borrowing to invest'. As our Greek friends would no doubt say, what could possibly go wrong?

    Isn't that what we are doing in many areas?

    Help to Buy being just one scheme.
  • Thrugelmir
    Thrugelmir Posts: 89,546 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    Graham_Devon wrote: »
    Isn't that what we are doing in many areas?

    Help to Buy being just one scheme.

    The unknown factor with HTB is whether the taxpayer will ultimately end up picking up the bill.
  • purch
    purch Posts: 9,865 Forumite
    wymondham wrote: »

    I'm reading more and more about another recession about to arrive

    If you look hard enough you will read more and more stating the exact opposite.
    'In nature, there are neither rewards nor punishments - there are Consequences.'
  • Crashy_Time
    Crashy_Time Posts: 13,386 Forumite
    10,000 Posts Seventh Anniversary Name Dropper
    HAMISH_MCTAVISH wrote: »
    Not sure why people think interest rates can't go lower.

    Sweden, amongst several others, has Negative Interest Rates.


    And I hear the government will be introducing them in Aberdeen soon...... :rotfl:
  • Crashy_Time
    Crashy_Time Posts: 13,386 Forumite
    10,000 Posts Seventh Anniversary Name Dropper
    purch wrote: »
    If you look hard enough you will read more and more stating the exact opposite.


    On here you mean, from ten or so "Industry experts".......:rotfl:
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