Government is now propping up the credit bubble

[Old Greg]

Exactly what I said

Unfortunately nationalisation is oh so unfashionable and 1970s. Best solution though IMHO. The assets (mortgages) transfer to the state. The savings are protected (the state is taking the risk now anyway, so may as well take the business) and can be transferred to NS&I and the customers can take their funds elsewhere if they wish.

The people who get hammered are the investors, who as owners of a company with risky/reckless business practices should take the hit when it alll goes wrong.

[Signo_cypher]

Join the euro

Is this whole issue some dodgy way of getting us to adopt the euro? I hope not

[AlfredJPruffock]

The notion that as long as unemployment remains low (leaving aside disguised unemployment eg Govt jobs) one only has too look at the property crashes in Tokyo and now in the US to see that you can indeed have a large property crash despite having high rates of employment - if confidence is eroded and a credit crunch emerges then that can and does crash property markets.

[AlfredJPruffock]

Is this whole issue some dodgy way of getting us to adopt the euro? I hope not

Well who in their right mind wants to buy Dollars ?

[sappatz]

mugabe

I think we should get that nice Mugabe chap in to sort these things out, he understands how economies work.

Actually they will probably use the same recipe as mugabe, inflation, to sort it all.
Greenspan sees 10% inflation at least for the USD for the followign years.

Obviously inflation is a way of eroding debt.

[milanbenes]

no sappatz,

inflation is....

and our survey said...

t
a
x


I gotta say lads, this financial situation spectator sport is better than east enders


Milan.

[NoddY]

...Obviously inflation is a way of eroding debt.

Only wage inflation erodes debt. Inflation is the decreasing value of money. People who sell their labour for money find their labour worth less.

[Sysman]

Not quite - the government has effectively said that if NR goes under during the current financial market situation, then they will nationalise it.

Good old fashioned socialist principles.

As I said here last April.

[milanbenes]

Sysman,

u da man

who'd have thought it eh that such a predicition could come true !

Milan.

[AlfredJPruffock]

Gordo's in the basement
Mixing up the medicine

Alf's on the pavement
Thinking about the government

The Top man from Northen Rock
Badge out, laid off

Says he's got a bad cough
Wants to get it paid off

Look out kid
It's somethin' you did
God knows when
But you're doin' it again

You better duck down the alley way
Lookin' for a new friend
The man in Treasury
Gotta Big Printing Press
Wants eleven Pound Notes
You only got Ten