Monday, Jan 28, 2008
A reminder of why recessions aren't fun
MoneyWeek: Why the credit bust will be far worse than the tech bust
Those who claim a recession would be the perfect antidote to our overspending ways should remember a couple of things. Firstly, that recessions are miserable. And secondly, that this one's going to be much, much worse than the 'mini-recession' that followed the tech crash
Posted by mary @ 11:15 AM (604 views) Add Comment
5 Comments
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1. Isitallfallingdown said...
Oh dear, keep talking up your own book Merryn. Reminds me of the 0898 helplines, doesen't really matter what you say, at least there are some mugs paying for the subscription. Your contempt for those wanting to get a house out of all this is remarkable.
2. planning4acrash said...
They are miserable for those who loose money in asset classes or those who loose their jobs. For those who retain their jobs and don't have assets? (Me) Possibly much of the younger generation, they can be great as consumer inflation can go into reverse and standard of living can go up.
3. cyril said...
P4C - recessions are great as long as you don't lose your job, and you don't have any family or friends who own anything.
4. Dbc Reed said...
Deja vu all over again, since Stepek seems to be repeating what I said last week on this web-site in almost the same words; much to some people's irritation then.It is nigh on impossible to isolate yourself from a recession.The gov. has already clamped down on public sector pay,as they all tried to do in the 70's i.e. under the rate of inflation . If things go to form, the politicians will try to restrain pay and attack the unions head-on if necessary and lower interest rates to help business so producing that good old stagflation where house prices go up (much worse in the early 70's than now) and your wages are held down.
There are simple ways to isolate the housing sector and inflate the rest of the economy (e.g. Schedule A of Income tax pre 1963 abolition) but everybody (including many on house price crash) is too fixated on making a killing on the housing market.
If house prices are to come down they will have to stay down to do any good for the economy but the evidence seems to indicate that not everybody on this site really wants to put an end to the hpi troughs and peaks.DBC Reed
era.
5. Verymeanreversion said...
>As Roger Bootle points out in his column in this morning’s Telegraph, until the middle of last year, hardly anyone knew what a subprime mortgage was – it’s now “regularly discussed in the Dog and Duck.”
That's just because the Dog and Duck is my local and I'm always annoying the regulars.
www.dogandducklinton.co.uk