False dawn?

[Doggy Styles]

I'm not a quant or an economist, but the way I see it the fundamental problems are simple: Government and personal debts are both substantial, and have been getting bigger at an accelerating rate even during times of growth.

Those simple facts were there for all to see a few years ago (and some on CUK have commented on it), but there were so many vested interests that they were largely ignored. The likes of Vince Cable (and, it appears, Menelaus) were shouted down.

To compete with each other in this environment, banks ventured into higher and higher risk lending, and we all know what happened. We are now at the point where people think "saving the banks" has resolved the problems.

However, the current "revival" can only be a blip because the fundamental problems are still there, and they are getting worse.

 

[PM-Junkie]

I'm not a quant or an economist, but the way I see it the fundamental problems are simple: Government and personal debts are both substantial, and have been getting bigger at an accelerating rate even during times of growth.

Those simple facts were there for all to see a few years ago (and some on CUK have commented on it), but there were so many vested interests that they were largely ignored. The likes of Vince Cable (and, it appears, Menelaus) were shouted down.

To compete with each other in this environment, banks ventured into higher and higher risk lending, and we all know what happened. We are now at the point where people think "saving the banks" has resolved the problems.

However, the current "revival" can only be a blip because the fundamental problems are still there, and they are getting worse.

You are absolutely right. I have been shouting for ages that all that is happening is that politicians are papering over the cracks in a (hopefully) vain attempt to hold on to power. The fundamentals of the problems are not being dealt with....so this will happen again, and next time it will be far worse because the cupboards will be even more bare.

 

[George Parr]

1200 Jobs to go at Fujitsu UK

 

[DimPrawn]

1200 Jobs to go at Fujitsu UK

J Sainsbury's hiring 20,000 at Xmas.

http://www.guardian.co.uk/business/2009/aug/26/sainsburys-hiring-christmas-staff

One job is lost and 10x are created by New Labour.

 

[HairyArsedBloke]

J Sainsbury's hiring 20,000 at Xmas.

http://www.guardian.co.uk/business/2009/aug/26/sainsburys-hiring-christmas-staff

One job is lost and 10x are created by New Labour.

To repeat an old gag, "Let them stack cake"

 

[Peoplesoft bloke]

Pretty much all of economics seems to be founded on pillocking around with paper (and electronic) crap that doesn't really exist so what has changed? The people in Iceland are mostly still carrying on as normal.

 

[George Parr]

Pretty much all of economics seems to be founded on pillocking around with paper (and electronic) crap that doesn't really exist so what has changed? The people in Iceland are mostly still carrying on as normal.

Everything will be fine there now, they are going to join the EU