Is a an economic depression coming?

[Whorty]

Rambling of an unemployed lockdown alcoholic. Sad really when it happens....

You say sad, I say it's entertaining watching Sassy and his imbecilic drivel

[BlasterBates]

This is a difficult market as staying in cash isn't necessarily going to work, with helicopter money being distributed in huge quantities with more of it to come, there could be a pick up in inflation.

You need to balance between equities cash and gold.

[GJABS]

My opinion is that there is nothing to indicate there will be a depression - though that doesn't rule it out.
Depressions like the one that occurred in the 1930's happened due to the collapse of the broad money supply (money/debt pairings created by banks as they offer depositors credit) after the economic over-confidence of the roaring 20's leading to the wall street crash of 1929. This caused a lot of poverty from reduced economic activity and deflation. However that was when the country (the US) was on the gold standard.
Nowadays the central banks can print narrow money (banknotes and primary bank's accounts with the Fed/Bank of England) allowing them to offset some of the deflation and generate short term boosts to the economy. However doing this won't prevent the loss of confidence leading to loss of desire to lend etc, so the recession/depression will be just as severe, only spread over a greater period of time.
Coronavirus is not an indication of a loss of confidence in the system, it's "just" a bad thing that happened. Investors are still as confident about the future relative to the current depressed market valuations as they were before the virus came along.

[DimPrawn]

My opinion is that there is nothing to indicate there will be a depression - though that doesn't rule it out.
Depressions like the one that occurred in the 1930's happened due to the collapse of the broad money supply (money/debt pairings created by banks as they offer depositors credit) after the economic over-confidence of the roaring 20's leading to the wall street crash of 1929. This caused a lot of poverty from reduced economic activity and deflation. However that was when the country (the US) was on the gold standard.
Nowadays the central banks can print narrow money (banknotes and primary bank's accounts with the Fed/Bank of England) allowing them to offset some of the deflation and generate short term boosts to the economy. However doing this won't prevent the loss of confidence leading to loss of desire to lend etc, so the recession/depression will be just as severe, only spread over a greater period of time.
Coronavirus is not an indication of a loss of confidence in the system, it's "just" a bad thing that happened. Investors are still as confident about the future relative to the current depressed market valuations as they were before the virus came along.

[ladymuck]

I dunno about an economic depression but there's definitely the other type (not the weather one either) coming up if some things aren't relaxed

[GJABS]

What?

[vetran]

I bet they can hand you you ass on a plate though.

FTFY.

AssGoo & Old Smeg are near to claiming Blackadder was historically accurate.

[BR14]

FTFY.

AssGoo & Old Smeg are near to claiming Blackadder was historically accurate.

you mean it isn't?

[vetran]

Sadly I have to agree with Assgoo a lot of people will suffer and many will feel the bite of unemployment.

I do not however take pleasure in this or get excited about abusing them so gladly I am nothing like him!

[vetran]

you mean it isn't?

Well this is the mental picture (top in posing pouch) I have of Assgoo standing next to NAT (as his eye recovers after a nasty Gimp suit accident) on the way to service the bank holiday trade for NLUK.