Reasons why the recession will be short-lived (we hope!)

[MrMark]

Why this time it's different:

1) The pound's fallen. We can sell more abroad, plus our cities and shopping streets will be full of foreigners seeking bargains. Boomed!

2) Interest rates are very low.

3) Oil is now low again.

4) Gordo and Darling are pumping money into the economy. Well, into the banks anyway.

5) If too many contractors lose their contracts, they've got Plan B to re-invigorate the economy.

6) The Olympics are coming !!!

7) House prices are still holding steady in some areas. There is a pent-up demand for people to buy their own place. As soon as they get their deposit saved (and the govt forces banks to lash out easy credit again) we'll have a boom again!

[DiscoStu]

Originally Posted by MrMark

Why this time it's different:

1) The pound's fallen. We can sell more abroad, plus our cities and shopping streets will be full of foreigners seeking bargains. Boomed!
Everywhere else is in recession too. Nobody's going on holiday.

2) Interest rates are very low.
Yes, and banks are passing on all of the recent rate cuts in full

3) Oil is now low again.
Except the average consumer will hardly benefit because of huge fuel duties and utility companies very slow to lower prices.

4) Gordo and Darling are pumping money into the economy. Well, into the banks anyway.
You know where it's coming from, right?

5) If too many contractors lose their contracts, they've got Plan B to re-invigorate the economy.
Ummmm, depends how much I can sell that spare kidney for.

6) The Olympics are coming !!!
Great, another opportunity for HMG to piss away billions of quid.

7) House prices are still holding steady in some areas. There is a pent-up demand for people to buy their own place. As soon as they get their deposit saved (and the govt forces banks to lash out easy credit again) we'll have a boom again!
They're only holding up in CyberToryShire. There is no pent up demand, everyone who wants to move is in negative equity or can't get a mortgage. Although it may talk very tough, there's not a lot the govt can do to force banks to start chucking out credit again.

Stu in "Optimist Mode"

[expat]

We can't sell more abroad just because the pound is down. What we sell are financial services because we have skilled financial knowledge, and investments that sell well because our interest rates are high. Oops.

And oil. Some, still. In dollars. At a lower price.

[minestrone]

I have just hired 2 people on short term contracts for my plan B.

I will either come out of this very rich or very poor.

[BrilloPad]

Originally Posted by MrMark

Why this time it's different:

1) The pound's fallen. We can sell more abroad, plus our cities and shopping streets will be full of foreigners seeking bargains. Boomed!

2) Interest rates are very low.

3) Oil is now low again.

4) Gordo and Darling are pumping money into the economy. Well, into the banks anyway.

5) If too many contractors lose their contracts, they've got Plan B to re-invigorate the economy.

6) The Olympics are coming !!!

7) House prices are still holding steady in some areas. There is a pent-up demand for people to buy their own place. As soon as they get their deposit saved (and the govt forces banks to lash out easy credit again) we'll have a boom again!

Shame that people are going to have to reduce/pay back their debts or you might have a point.

[TimberWolf]

Originally Posted by BrilloPad

Shame that people are going to have to reduce/pay back their debts or you might have a point.

Won't hyper inflation solve that?

[swamp]

You heard it here first...

The recession is OVER!

You heard it here first. If you're ever asked where you were when you heard the news that the recession-credit-crunch-crash was over, remember it was reading that V8-geezer's auction report.

Why is it over? Because, three weeks before the most impoverished Christmas for 15 years, the motor trade decided to throw around £6m at a load of new stock for their frozen car lots. And not only that, they decided to pay the kind of prices which had me wondering if this sale had the last cars ever, anywhere is the world.

http://www.pistonheads.com/gassing/t...002%20Dec%2008

[Flashman]

Originally Posted by MrMark

Why this time it's different:

1) The pound's fallen. We can sell more abroad, plus our cities and shopping streets will be full of foreigners seeking bargains. Boomed!

2) Interest rates are very low.

3) Oil is now low again.

4) Gordo and Darling are pumping money into the economy. Well, into the banks anyway.

5) If too many contractors lose their contracts, they've got Plan B to re-invigorate the economy.

6) The Olympics are coming !!!

7) House prices are still holding steady in some areas. There is a pent-up demand for people to buy their own place. As soon as they get their deposit saved (and the govt forces banks to lash out easy credit again) we'll have a boom again!

Has anyone seen the film 'children of men'? Our society will look and feel much like that in 10 years time. On a bad day it already does.

The only consolation being that mainland Europe will be even worse off

[Mich the Tester]

Originally Posted by expat

What we sell are financial services because we have skilled financial knowledge,

skilled?

[BrilloPad]

Originally Posted by TimberWolf

Won't hyper inflation solve that?

Like it did for Zimbabwe?