Reply to: The economy

[CheeseSlice]

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.

This all sounds depressingly true of the governments intentions for recovery.

Since I'm benched and have all the time in the world these days, I flicked through the HM Treasury's vision for the future of financial services.

The whole thing smacks of 'business as usual', and getting back on the gravy train asap. There is no 'real' bank reform guidance, and no splitting apart of the banking system to separate commercial deposit banking and investment banking.
Its a big steaming pile of poo

[AlfredJPruffock]

Grey Slates will remain - Grey Slates.

PS anyone seen any cybermen in this forum ? nah cant be true ...

[Diver]

House prices will go up

Those of us with the foresight to purchase cheaply some of the 75,000 repossessed homes and let them out to the dispossessed are the ones who are helping to give the economy a boost, and give the unfortunate a roof over their heads (at least until they stop paying rent)

[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.

[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.

[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]

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.

[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?

[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?

[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.

[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.

[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.

[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 ??!!!

[suityou01]

Nah just read on some financial website

[Andy2]

Is this opinion or do you have some economic theory to back this up?

Nah just read on some financial website