Reply to: Is the recession over?

[scooterscot]

There is a recession? Just got a 3rd contract to contend with, I really should think about employing someone... Even my physio says I should employee an extra per of hands to undo the stress...

It's only for the next 4 weeks, I can do it...

[TimberWolf]

From A sovereign vulnerability scorecard

...the last time Britain had to be bailed out — by the IMF in December 1976 — the cyclically-adjusted primary deficit and the debt to GDP ratio were only 4 per cent and 53 per cent, respectively. They’re 7 per cent and 78 per cent now.

Boomed.

[Mich the Tester]

The big dip is coming in 2011/2012 when big corporates are unable to refi their debt because the ratings and the data on which a refi package would be built is so volatile as to be thoroughly misleading.

Is there not a risk of banks being unable to pay interest to depositors due to not lending enough?

Perhaps not now, but when interest rates go up?

[fullyautomatix]

That is inconsistant with 2/3 above.

A very good point.

However, hyperinflation will probably not hit with a bang.

I am suggesting that there will be enough time to move your money into USD/Euro when the tulip hits the fan. You then have enough hard currency to buy goods.

If you have no currency you are now probably having just assets to sell to survive.

Mind you, when hyperinflation hits, everything will be traded in alternative currency, USD/Euro/Gold.

[HairyArsedBloke]

This recession will get a lot more worse when

1) Government cannot borrow anymore since the credit card is maxed out.
2) Pound sterling loses considerable value.
3) Hyperinflation due to 2)
4) Public sector employees are laid off en masse and are unable to get a job in private sector.
5) Private sector companies leeching off government contracts go bust.
6) House prices fall by 50%

So who will get out of this alive?

1) People who have no debt and massive savings.
2) People who have invested in USD and gold.
3) People who are employed in sectors like technology and manufacturing selling products overseas.

That is inconsistant with 2/3 above.

[doodab]

This recession will get a lot more worse when

1) Government cannot borrow anymore since the credit card is maxed out.
2) Pound sterling loses considerable value.
3) Hyperinflation due to 2)
4) Public sector employees are laid off en masse and are unable to get a job in private sector.
5) Private sector companies leeching off government contracts go bust.
6) House prices fall by 50%

So who will get out of this alive?

1) People who have no debt and massive savings.
2) People who have invested in USD and gold.
3) People who are employed in sectors like technology and manufacturing selling products overseas.

People with lots of sterling denominated debt will benefit as the debt is devalued.

[DimPrawn]

This recession will get a lot more worse when


So who will get out of this alive?

1) People who have no debt and massive savings.
2) People who have invested in USD and gold.
3) People who are employed in sectors like technology and manufacturing selling products overseas.

Permission to enter smug mode sir?

[HairyArsedBloke]

[Moscow Mule]

So who will get out of this alive?

4) People with a mortgage & a job to service it.

Won't hyper inflation **** over people with savings & no debt?

[TimberWolf]

...

So who will get out of this alive?

1) People who have no debt and massive savings.
2) People who have invested in USD and gold.
3) People who are employed in sectors like technology and manufacturing selling products overseas.

1) have already been roasted on a spit, earning negative interest in the bank and seeing the Pound debased.
2) Me, but a bit late in the day.
3) Yeah, people that keep their highly paid jobs will do well out of the recession, e.g. doctors.

[fullyautomatix]

This recession will get a lot more worse when

1) Government cannot borrow anymore since the credit card is maxed out.
2) Pound sterling loses considerable value.
3) Hyperinflation due to 2)
4) Public sector employees are laid off en masse and are unable to get a job in private sector.
5) Private sector companies leeching off government contracts go bust.
6) House prices fall by 50%

So who will get out of this alive?

1) People who have no debt and massive savings.
2) People who have invested in USD and gold.
3) People who are employed in sectors like technology and manufacturing selling products overseas.

[DimPrawn]

I'm getting a very smug feeling reading this thread and realising how many good decisons I've made over the years.

Have a good gloat and a bit of a sneer too.

[Scary]

Not me for sure.

But are you wealthy, overseas or a buyer?

[AtW]

How many wealthy overseas buyers are in the market for a bedsit above a kebab shop in a rough part of London?

Not me for sure.

[sasguru]

I'm getting a very smug feeling reading this thread and realising how many good decisons I've made over the years.