Sterling recovers

[sasguru]

They will fair fine just like USA because not only they have kept their own real economy making goods in demand (even if it slows down during crisis) but also they now have reserve currency that will help them sell bonds to finance projects.

UK on the other hand has got depreciating currency that makes its debt unattractive, low interest rates that reduce interest to that debt even further and virtual "service" economy with a handful of manufacturing locations mainly owned by foreign investors who would prefer to move to lower tax places in EU.

Conclusion - UK is fooked, and EU (as in eurozone) will get out of this stronger than before. Then I think they will use German experience to bail out UK like they did with the Eastern Germany - good new roads will be build, fiber optics put into ground rather than copper and all will be well.

Remember you heard it on here first.

I predict the exact opposite. The more agile UK economy will adapt quicker and will come out of recession quicker than the Eurozone. The Eurozone has to deal with its basket cases: Spain, Greece, Portugal and Italy.
The weaker countries will need a different policy to the stronger ones and this is not possible with the one-size-fits-all Euro.

[Purple Dalek]

UK fared (relatively) well during the great depression as it came off the gold standard early.

The falling pound will save us.

Haven't you got any SKA to code?

Erm, it was because America went protectionist and shot themselves in the foot, this allowed the UK to give the finger to the states over trade, and go back to using the colonies as a trading group.

So as a model, this time it'd be China going protectionist and eurozone giving the finger. Which is looking likely to happen.

Although UK being outside the Euro, may well have severe consequences as there aren't the colonies any longer.

HTH

[AtW]

The weaker countries will need a different policy to the stronger ones and this is not possible with the one-size-fits-all Euro.

Rubbish. Rates set by central banks no longer play substantial role - it was always a stupid assumption that they did actually, now it became clear that market sets its own rates and central banks can only help cut this down with cash injections on low rates - each individual member states can have their own packages tailored to their own circumstances, so euro zone will be fine - pounds plight shows that investors are betting on, it sure as heck not great recovery of UK.

When you lose your job by the end of 2009 you will have time to think it all over while sweeping the streets of Looooooooodon.

[Cyberman]

I predict the exact opposite. The more agile UK economy will adapt quicker and will come out of recession quicker than the Eurozone. The Eurozone has to deal with its basket cases: Spain, Greece, Portugal and Italy.
The weaker countries will need a different policy to the stronger ones and this is not possible with the one-size-fits-all Euro.

Good Heavens. Even more commonsense emanating from Assguru.

[AtW]

Although UK being outside the Euro, may well have severe consequences as there aren't the colonies any longer.

Eatern states to Western Europe (apart from UK) will play role of colonies and help ride out this storm - this will help keep more manufacturing inside EU. UK will be shafted either way, it is just a wishful thinking for some to think eurozone will suffer as long or as much as UK will.

[AtW]

Good Heavens. Even more commonsense emanating from Assguru.

Well, you are an idiot for sure and I am pleased to see that you side with guru !

I am off now to see my legal team.

[Cyberman]

Rubbish. Rates set by central banks no longer play substantial role - it was always a stupid assumption that they did actually, now it became clear that market sets its own rates and central banks can only help cut this down with cash injections on low rates - each individual member states can have their own packages tailored to their own circumstances, so euro zone will be fine - pounds plight shows that investors are betting on, it sure as heck not great recovery of UK.

When you lose your job by the end of 2009 you will have time to think it all over while sweeping the streets of Looooooooodon.

Utter garbage AtW. Never underestimate the power of interest rate policy.

[Cyberman]

Well, you are an idiot for sure and I am pleased to see that you side with guru !

I am off now to see my legal team.

I'm off to see the men in white coats !!

[BrilloPad]

Well, you are an idiot for sure and I am pleased to see that you side with guru !

I am off now to see my legal team.

I hope you are going to tell them everyone says your economic theories are s**t. And they sue. I could do with a laugh....

[sasguru]

Eatern states to Western Europe (apart from UK) will play role of colonies and help ride out this storm - this will help keep more manufacturing inside EU. UK will be shafted either way, it is just a wishful thinking for some to think eurozone will suffer as long or as much as UK will.

Yes because the Poles and Hungarians are going to start buying the Porsches, Mercs and BMWs that the City boys aren't buying?

Your idiocy gets more extreme by the minute