Reply to: False dawn?

[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

[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.

[HairyArsedBloke]

J Sainsbury's hiring 20,000 at Xmas.

http://www.guardian.co.uk/business/2...hristmas-staff

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

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

[DimPrawn]

1200 Jobs to go at Fujitsu UK

J Sainsbury's hiring 20,000 at Xmas.

http://www.guardian.co.uk/business/2...hristmas-staff

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

[George Parr]

1200 Jobs to go at Fujitsu UK

[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.

[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.

[Scary]

Sadly New Labour had no balls and continued what Thatcher started.

[Menelaus]

Peter Mandelson, the Dark Lord of the Sith gave away our assets to the rich for a song and crushed the remnants of British industry.

Fixed that for you.

Examples include MG Rover, LDV and various building societies - at the expense of the taxpayer, eating into the asset base. It's interesting that they are now cannabalising their existing base (e.g., the service sector and the much vaunted much fawned over financial services industry).

HTH.

[Scary]

The Tories gave away our assets to the rich for a song and crushed the remnants of British industry.

[The Lone Gunman]

more because of his timidity and inaction when sitting in No11

I would have said the opposite. There has been lots of action made with confidence.
The problem is that the confidence was based on a complete lack of understanding.
It always seems that the NL team took the previous successes of the Tories and looked how they could go one further. NL went further by removing any checks and balances the Tories had left in place and completely missed the reasoning for leaving those checks and balances there in the first place.
I am not saying the Tories got it right, some of their policy is responsible for the current mess, but the fiddling at the exchequer has made what would have been costly, ruinous.

[HairyArsedBloke]

We were, and we remain as a nation and as an economy buggered. I'm almost less concerned as to where the blame lies - there's plenty to go around and much of it lands squarely on the doorstep of the current resident of No10, not because of his timidity and inaction there - more because of his timidity and inaction when sitting in No11.

I would not agree that the snot goblin as being inactive; far from it. Asset price inflation has always been part of how the nuLieBore regime has held on to power. They have cynically exploited the wealth effect to delude the voters into believing how better off they are. It could never be sustained for very long before it collapsed, but I don’t think they planned to be around when that happened.

[chef]

Yep. Unfortunately, when I published in 2005 warning of the crisis brewing (and missed only Iceland) I got fired for my troubles.

i'd be interested in reading that if possible

[Scary]

Free markets? Where?

[OwlHoot]

My Oh My - hindsight is such a wonderful thing - n'est-ce-pas ?

Im sorry for all you Cassandras and Prophets of Doom - The Free Markets proved a lot more robust and a lot more cleverer than you or I could ever imagine - and once again , the abilty of the USA to re-invent itself time and time again ... makes it all so fascinating !

Enjoy the Ride and Viva la Vida !

If so, and Gordon Brown claims to have saved the world, and mugs start *believing* him, I really don't think I could take it.