DOOMED - Recession worse than originally thought

[BrilloPad]

http://www.bloomberg.com/apps/news?p...WJ0&refer=home

Can someone explain to me why it's predicted that the UK economy will only contract by 2.8% this year, whereas this quarterly figure predicts an annual rate of contraction in excess of 6%, if sustained?

Are there any reasons to think that the rate of contraction will fall this year?

Or is it that people just can't bring themselves to express the real scale of the doom?

So add the 6% to the 2.2% during second half of 2008 and you get close to depression.

Interesting......

[Gordon Brown]

Green shoots of recovery. The recession is almost over now.

[PM-Junkie]

Sterling is gonna take a hammering against the Euro for sure......

And you base that contention on what, exactly?

[Solidec]

And you base that contention on what, exactly?

Quantititave Easing effects, base rate cuts, budget deficits, market confidence, gilt auction results...

Maybe I should have said "in my humble opinion" instead of "for sure"

I correct myself!

[PM-Junkie]

Quantititave Easing effects, base rate cuts, budget deficits, market confidence, gilt auction results...

Maybe I should have said "in my humble opinion" instead of "for sure"

I correct myself!

Many people argue that the negative presure on the Euro is or will be more severe than that on sterling, hence my surprise at your comment. You make the assumption that the UK is the only economy to apply QE. It isn't. Most countries are doing the same, so the textbook position that QE weakens a currency doesn't hold (note when QE was announced, sterling barely moved). Also everyone has slashed base rates as much as they can - and the Eurozone is unique in that it has major variations in pressure at both ends of the scale (compare Germany with Ireland for example).

Over the next 18 months, I wouldn't be surprise to see sterling strengthen against the Euro. I personally think that the Euro is going to be in big trouble, even more so than sterling.

[DimPrawn]

The Euro, £ and $ are all fooked compared to Gold.

Forget the FIAT currencies and buy Gold or even oil.

[gingerjedi]

Give a 5hit.

Get rid of your debts, grow your own, brew your own and stop worrying about things that you have no control over.

[PM-Junkie]

Give a 5hit.

Get rid of your debts, grow your own, brew your own and stop worrying about things that you have no control over.

sage advice

[BrilloPad]

Give a 5hit.

Get rid of your debts, grow your own, brew your own and stop worrying about things that you have no control over.

Alas I have an ongoing obligation to pay maintenance to my ex. Unless she should befall a nasty accident.

[AlfredJPruffock]

The Euro, £ and $ are all fooked compared to Gold.

Forget the FIAT currencies and buy Gold or even oil.

Some say Silver is even better investment than Gold.

Of course you cant eat either of them .

My advice ?

Chant - Hare Krishna Hare Ramma Hare Krishna Hare Hare