The economy

[Cyberman]

Hats off to New Labour, Brown and co.

All this talk of a 1929 depression and nothing materialises.

A few wise words from the best PM since Churchill, a few £ trillion thrown to the banks and everythings back to Boom within a few months. Stock markets rocketing, house prices up and up.

This time next year we're all be millionaires.

Labour have my vote!

Hang on a mo !! Are you saying that we won't have a 700 Billion deficit over the next few years ??!!!

[gordonbrown]

Hang on a mo !! Are you saying that we won't have a 700 Billion deficit over the next few years ??!!!

You obviously don't understand economics.

It is only a paper debt. Every country has a so-called debt, which means when it's all totted up, nobody owes anybody else any REAL money.

I have moved some of this paper money to the banks, so that they start lending again. People can start spending their hard-earned credit cards and maximising the equity in their properties, and we will return to the steady growth that has been a hallmark of my government.

I say again, the robust credit opportunities I have engineered makes the British economy better placed than any other to emerge from the downturn.

[TimberWolf]

I heard something interesting said last night, forget where. It was said that for every pound that will be lost by people during this recession, there will be someone else making a pound. Discus.

[sweetandsour]

I heard something interesting said last night, forget where. It was said that for every pound that will be lost by people during this recession, there will be someone else making a pound. Discus.

I'm not sure about that.

What we are seeing is credit being destroyed. That credit never existed as real money in the first place.

Someone that has seen the value of their house drop by £50,000 has not really lost £50,000. Not unless they puchased it recently with a large LTV mortgage anyway.

[Menelaus]

You obviously don't understand economics.

It is only a paper debt. Every country has a so-called debt, which means when it's all totted up, nobody owes anybody else any REAL money.

I have moved some of this paper money to the banks, so that they start lending again. People can start spending their hard-earned credit cards and maximising the equity in their properties, and we will return to the steady growth that has been a hallmark of my government.

I say again, the robust credit opportunities I have engineered makes the British economy better placed than any other to emerge from the downturn.

Gordon...please, go piss against an electric fence, will you?

[Doggy Styles]

I'm not sure about that.

What we are seeing is credit being destroyed. That credit never existed as real money in the first place.

Someone that has seen the value of their house drop by £50,000 has not really lost £50,000. Not unless they puchased it recently with a large LTV mortgage anyway.

Supposed they have lost their job, or kids have left home, or they are retiring and they want to downsize?

[sweetandsour]

Supposed they have lost their job, or kids have left home, or they are retiring and they want to downsize?

They still won't be losing money unless they sell for less than they paid.

[TimberWolf]

They still won't be losing money unless they sell for less than they paid.

In that scenario they have not lost money, and as no one has gained the money they didn't lose it's not applicable to the thesis that for every pound someone loses, another gains.

[sweetandsour]

In that scenario they have not lost money, and as no one has gained the money they didn't lose it's not applicable to the thesis that for every pound someone loses, another gains.

That is my thinking really.

Credit is being destroyed, and that will depress activity, but I can't think of anyone who is losing money in the first place for someone else to gain it.

[suityou01]

Where are house prices going up? Apart from Cybertoryshire that is..........

The stock market is a bear rally.

It would appear Robin Griffiths agrees with you.

http://www.cnbc.com/id/30803109

The bear-market rally that stocks have enjoyed for the last 10 weeks is over, Robin Griffiths, technical analyst at Cazenove Capital told CNBC Monday. As a consequence, the FTSE-100 index and the euro will pare gains. In the meantime, investors should buy corporate bonds, he suggested.