GDP shocka

[Harry Flashman]

Digga said:

Fittster said:

Galsia said:

Fittster said:

Galsia said:

The problem is that reporting stories like this just makes the situation even worse. I'm saving every penny that I can at the moment in case it all goes tits up.

News like this will end up making people spend even less, making the economy even worse. Its a vicious cycle...

So the media should hush up bad news about the economy? Thankfully the policies of Merv will soon have you spending like mad.

No, its just doesn't have to be 'BREAKING NEWS: Shock Contraction in UK Economy' on the BBC front page.

Can't wait for the Daily Mail's response...

Whats Merv?

Merv 'Utter, utter wker' King, head of the Bank of England. The man who is destroying the value of the pound so uncompetitive firms can compete on the world market, allowing inflation to run rampant to ensure that people have to spend their savings on crap they don't need before their paper money becomes worthless and whose expansion of the money supply keeps asset bubbles afloat so reckless lenders don't have to write down the value of their loans.

Galsia, Merv is the person who's ensuring that savers like you are penalised, through paltry interest returns and rampant inflation. (He's the head of the Bank of England.) HTH

But if the bulk of the polulation are in debt, he may be penalising savers, but he's holding off bannruptcies/difficulties for the vast majority.

What would you prefer - a situation of mass defaults on loans/mortgages?

I hate that my savings make me nothing - but I'm pumping what I would have saved into the mortgage, above the "slush fund" for rainy days. I'd far rather that than half the country going insolvent, spending completely shutting down, and everything getting even worse...

[The Hypno-Toad]

crankedup said:

Anyone for a second dip!

Anyone in the front line of business in the UK would say that we never came out of the first one.

The 'D' word must only be a few months away.

[Murcielago_Boy]

So what's going to happen to rates now? They going to put them up while the economy is contracting?

[pilchardthecat]

GDP includes government spending.

The "shock" isn't that it's still negative, it's that so many people were fooled into believing that it went positive last year.

[Digga]

Harry Flashman said:

Digga said:

Fittster said:

Galsia said:

Fittster said:

Galsia said:

The problem is that reporting stories like this just makes the situation even worse. I'm saving every penny that I can at the moment in case it all goes tits up.

News like this will end up making people spend even less, making the economy even worse. Its a vicious cycle...

So the media should hush up bad news about the economy? Thankfully the policies of Merv will soon have you spending like mad.

No, its just doesn't have to be 'BREAKING NEWS: Shock Contraction in UK Economy' on the BBC front page.

Can't wait for the Daily Mail's response...

Whats Merv?

Merv 'Utter, utter wker' King, head of the Bank of England. The man who is destroying the value of the pound so uncompetitive firms can compete on the world market, allowing inflation to run rampant to ensure that people have to spend their savings on crap they don't need before their paper money becomes worthless and whose expansion of the money supply keeps asset bubbles afloat so reckless lenders don't have to write down the value of their loans.

Galsia, Merv is the person who's ensuring that savers like you are penalised, through paltry interest returns and rampant inflation. (He's the head of the Bank of England.) HTH

But if the bulk of the polulation are in debt, he may be penalising savers, but he's holding off bannruptcies/difficulties for the vast majority.

What would you prefer - a situation of mass defaults on loans/mortgages?

I hate that my savings make me nothing - but I'm pumping what I would have saved into the mortgage, above the "slush fund" for rainy days. I'd far rather that than half the country going insolvent, spending completely shutting down, and everything getting even worse...

I'm not convinced that mass default would ensue if rates were increased by a moderate amount. Anyone who didn't move house or remortgage form to 2008 - and surely that must be most people - would have weathered far higher interest repayments. (Granted that with inflation and pay cuts, some will feel the pinch a bit more.)

Lower interest rates do undoubtedly help exporters and also help stem the influx of foreign goods, by making them less cheap, but on the other hand, there is a forfeit in terms of a lack of foreign invesment.

In truth, I don't claim to know the answer, but am very uneasy about the UK's current position.

[Fittster]

Harry Flashman said:

But if the bulk of the polulation are in debt, he may be penalising savers, but he's holding off bannruptcies/difficulties for the vast majority.

What would you prefer - a situation of mass defaults on loans/mortgages?

I hate that my savings make me nothing - but I'm pumping what I would have saved into the mortgage, above the "slush fund" for rainy days. I'd far rather that than half the country going insolvent, spending completely shutting down, and everything getting even worse...

Then the majority who have taken on debt they can't handle should get what they deserve, it's the only way out of a depression. Now we just need for CMD and the boy George to say something along the lines of:

"liquidate labor, liquidate stocks, liquidate farmers, liquidate real estate… it will purge the rottenness out of the system. High costs of living and high living will come down. People will work harder, live a more moral life. Values will be adjusted, and enterprising people will pick up from less competent people."

Weeding out "weak" banks as a harsh but necessary prerequisite to the recovery of the banking system. This "weeding out" should be accomplished through refusing to lend cash to banks (taking loans and other investments as collateral), and by refusing to put more cash in circulation. Advocate spending cuts to keep the budget balanced, and opposed fiscal stimulus measures."



Time for a little hard Austrian medicine.

Edited by Fittster on Tuesday 25th January 11:49

[crankedup]

Its difficult to find any organisation which are supporting this Governments monetary policies. Still they must be correct and on the right track if the Tories say so

Labour and the World Banks got us into this mess and I can't see the current Government getting us out of it TBH.

[NoelWatson]

crankedup said:

Its difficult to find any organisation which are supporting this Governments monetary policies. Still they must be correct and on the right track if the Tories say so

Labour and the World Banks got us into this mess and I can't see the current Government getting us out of it TBH.

crankedup said:

Its difficult to find any organisation which are supporting this Governments monetary policies

Who is against it?

crankedup said:

Still they must be correct and on the right track

Agreed, and out credit rating reflects that

crankedup said:

Labour and the World Banks got us into this mess

Also bankers and consumers

crankedup said:

and I can't see the current Government getting us out of it TBH

It won't happen overnight, but then we had a decade long binge, so that is to be expected

[Zod]

crankedup said:

Its difficult to find any organisation which are supporting this Governments monetary policies. Still they must be correct and on the right track if the Tories say so

Apart from the IMF of course (and they would have been directing Labour's budget if they'd stayed in power).

[zakelwe]

It will be worse when all those public sector people are on the dole.

Although a fine theory in practice for future generations, it's going to be tough for this generation in the next few years.

One bright spot, manufacturing is doing relatively well, thanks to the low £. I do wonder if the minimum wage is not just a bit too high though nowadays for these current times?

Andy

[uk_vette]

So what to do with the lump of savings in the bank?
I dont want to buy a house, as I believe the general house prices will still drop further during this 2011.
Move cash to another country that is offering far better interest rates?
China ?

'vette

[DELLSMITHUK]

Digga said:

Harry Flashman said:

Digga said:

Fittster said:

Galsia said:

Fittster said:

Galsia said:

The problem is that reporting stories like this just makes the situation even worse. I'm saving every penny that I can at the moment in case it all goes tits up.

News like this will end up making people spend even less, making the economy even worse. Its a vicious cycle...

So the media should hush up bad news about the economy? Thankfully the policies of Merv will soon have you spending like mad.

No, its just doesn't have to be 'BREAKING NEWS: Shock Contraction in UK Economy' on the BBC front page.

Can't wait for the Daily Mail's response...

Whats Merv?

Merv 'Utter, utter wker' King, head of the Bank of England. The man who is destroying the value of the pound so uncompetitive firms can compete on the world market, allowing inflation to run rampant to ensure that people have to spend their savings on crap they don't need before their paper money becomes worthless and whose expansion of the money supply keeps asset bubbles afloat so reckless lenders don't have to write down the value of their loans.

Galsia, Merv is the person who's ensuring that savers like you are penalised, through paltry interest returns and rampant inflation. (He's the head of the Bank of England.) HTH

But if the bulk of the polulation are in debt, he may be penalising savers, but he's holding off bannruptcies/difficulties for the vast majority.

What would you prefer - a situation of mass defaults on loans/mortgages?

I hate that my savings make me nothing - but I'm pumping what I would have saved into the mortgage, above the "slush fund" for rainy days. I'd far rather that than half the country going insolvent, spending completely shutting down, and everything getting even worse...

I'm not convinced that mass default would ensue if rates were increased by a moderate amount. Anyone who didn't move house or remortgage form to 2008 - and surely that must be most people - would have weathered far higher interest repayments. (Granted that with inflation and pay cuts, some will feel the pinch a bit more.)

But the problem that no one seems to mention is that unlike a couple of years ago no one is (or can't!) refinance at a discount rate etc.
Im sure in 2007 or so very few people were paying the SVR rate set by their leander??
I think thats were the problem will be if rates rise? (although i do understand it's not good to have such low rates!!!)

[Fittster]

uk_vette said:

So what to do with the lump of savings in the bank?
I dont want to buy a house, as I believe the general house prices will still drop further during this 2011.
Move cash to another country that is offering far better interest rates?
China ?

'vette

Spend it on the high street buying stuff you don't need. Selfish people like you not spending are why we are in this mess!

[DELLSMITHUK]

Fittster said:

uk_vette said:

So what to do with the lump of savings in the bank?
I dont want to buy a house, as I believe the general house prices will still drop further during this 2011.
Move cash to another country that is offering far better interest rates?
China ?

'vette

Spend it on the high street buying stuff you don't need. Selfish people like you not spending are why we are in this mess!

Hehe

[frosted]

Slaav said:

How come that Balls(up) hasnt been featured all over the rolling news yet?

Spouting bks about its all the Coalition's fault and their policies are to blame etc etc

AAARRRGGGHHHH!

As far as you know it may well be the coalitions fault , dont think anyone knows whos fault it is really . I know one thing , the coalition aint got a clue how to even start fixing it , not that I would know , or you , or anyone else without a crystal ball

Fears of a double dip recession my arse , if you didn't think that was going to happen then your a moron

Happy days

[onesmallstep]

things aren't going too well then

[frosted]

Just blame it on the weather

[rsv gone!]

Can we find the one person in the whole country who was 'shocked' (or even mildly surprised) by this news and give them a good shake?

[onesmallstep]

frosted said:

Just blame it on the weather

I blame it on the euro

[Fittster]

rsv gone! said:

Can we find the one person in the whole country who was 'shocked' (or even mildly surprised) by this news and give them a good shake?

I suggest you shake the economists employed in the city, they weren't predicting this fall in GDP.