Europe heading into recession
Discussion
Even Germany isn't immune https://www.businessinsider.com/germany-just-went-...
2019 will be the year that we head into a global recession, they should have just let it run it's natural course back in 2008 but they didn't and now we're going to pay the price as China is not in a position now to bail us out like last time and we can't lower interest rates any lower.
2019 will be the year that we head into a global recession, they should have just let it run it's natural course back in 2008 but they didn't and now we're going to pay the price as China is not in a position now to bail us out like last time and we can't lower interest rates any lower.
tannhauser said:
f
k spending money FFS!! That's what got us into this mess!
It was spending money we didn't have that got us into this mess.k spending money FFS!! That's what got us into this mess!Here's a really crazy idea... perhaps if house prices were lower and people weren't having to spend record proportions of their income on mortgages or rent then just maybe they would have more cash to spend on goods and services, fuelling the wider economy?
mike74 said:
It was spending money we didn't have that got us into this mess.
Here's a really crazy idea... perhaps if house prices were lower and people weren't having to spend record proportions of their income on mortgages or rent then just maybe they would have more cash to spend on goods and services, fuelling the wider economy?
Yes lets put 10 million people in negative equity and reduce the pay of everyone who builds and supplies the materials for new houses. While we are at it we can put most of the millions of people who work for home owners updating and renovating their homes out of work. That will get everyone spending more.... crazy idea indeed.Here's a really crazy idea... perhaps if house prices were lower and people weren't having to spend record proportions of their income on mortgages or rent then just maybe they would have more cash to spend on goods and services, fuelling the wider economy?
Vanden Saab said:
mike74 said:
It was spending money we didn't have that got us into this mess.
Here's a really crazy idea... perhaps if house prices were lower and people weren't having to spend record proportions of their income on mortgages or rent then just maybe they would have more cash to spend on goods and services, fuelling the wider economy?
Yes lets put 10 million people in negative equity and reduce the pay of everyone who builds and supplies the materials for new houses. While we are at it we can put most of the millions of people who work for home owners updating and renovating their homes out of work. That will get everyone spending more.... crazy idea indeed.Here's a really crazy idea... perhaps if house prices were lower and people weren't having to spend record proportions of their income on mortgages or rent then just maybe they would have more cash to spend on goods and services, fuelling the wider economy?
TEKNOPUG said:
Vanden Saab said:
mike74 said:
It was spending money we didn't have that got us into this mess.
Here's a really crazy idea... perhaps if house prices were lower and people weren't having to spend record proportions of their income on mortgages or rent then just maybe they would have more cash to spend on goods and services, fuelling the wider economy?
Yes lets put 10 million people in negative equity and reduce the pay of everyone who builds and supplies the materials for new houses. While we are at it we can put most of the millions of people who work for home owners updating and renovating their homes out of work. That will get everyone spending more.... crazy idea indeed.Here's a really crazy idea... perhaps if house prices were lower and people weren't having to spend record proportions of their income on mortgages or rent then just maybe they would have more cash to spend on goods and services, fuelling the wider economy?
Penelope Stopit said:
Surely if a person isn't paying as much for a property that person will have more cash. Am I missing something?
Actually, you're spot on. It's just a very very hard thing to get through to most people that bubble level real estate prices make everyone poorer except for those with plenty of equity and about to exit the market forever. Of which there's very few. Penelope Stopit said:
Surely if a person isn't paying as much for a property that person will have more cash. Am I missing something?
Demand outstrips supply, which could be mitigated by building more where land is available..In certain areas - e.g. London - demand vastly outsrips supply, which cannot easily be addressed as little land is available.
smifffymoto said:
Is it coincidence that QE was stopped a month or 2 ago,now there is talk of a recession.
It has happened very quickly if so.
It's very worrying; the EU is heading into a technical recession, without any of the usual policy measures - interest rate cuts, QE - readily to hand. I mean, in theory the ECB could resume QE, but there are ramifications. As for rate cuts though, deposit rate is already negative.It has happened very quickly if so.
France and Italy have already been warned, repeatedly, about their budgets and,by most estimates, both will be even worse next year.
I always felt the EU and ECB were flat-footed in their response to the GFC. Too late to act, as if tied up by bureaucracy and hubris. Anyone remember the comments made by Farancois Hollande?
I may be wrong, but we seem to have an economy based on debt. Mortgages aside, we have finance available and probably taken up for pretty much everything.
Everything is pay monthly with the true cost often forgotten by most.
If something happened and purse strings were tightened, I'm guessing it wouldn't be good for the economy?
Everything is pay monthly with the true cost often forgotten by most.
If something happened and purse strings were tightened, I'm guessing it wouldn't be good for the economy?
stuckmojo said:
Penelope Stopit said:
Surely if a person isn't paying as much for a property that person will have more cash. Am I missing something?
Actually, you're spot on. It's just a very very hard thing to get through to most people that bubble level real estate prices make everyone poorer except for those with plenty of equity and about to exit the market forever. Of which there's very few. Borghetto said:
Digga said:
Anyone remember the comments made by Farancois Hollande?
No, give us a clue.I think it may have been during this rather awkard period: https://www.telegraph.co.uk/news/worldnews/europe/...
Neonblau said:
Demand outstrips supply, which could be mitigated by building more where land is available..
In certain areas - e.g. London - demand vastly outsrips supply, which cannot easily be addressed as little land is available.
I really don’t think demand for housing exceeds supply at all.In certain areas - e.g. London - demand vastly outsrips supply, which cannot easily be addressed as little land is available.
I know demand for houses at cheaper prices than advertised exceeeds supply but that’s different.
Look on rightmove and you’ll see the supply, it’s massive! And there aren’t many buying.
Penelope Stopit said:
Vanden Saab said:
I didn't suggest that house prices were at a sensible level only that reducing them would not leave people with more cash to spend...
Surely if a person isn't paying as much for a property that person will have more cash. Am I missing something?Edited by anonymous-user on Monday 14th January 10:41
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