Sunday, Dec 21, 2008
Are we on HPC fascists ?
David Smith Economics Blog: Transmission mechanism stuck in reverse
David Smith and HPC statements are diametrically opposite. Here on HPC we would like to see an end to reckless borrowing and asset prices return to sensible 3.5 x earnings levels. David Smith would like to see reckless lending and unsustainable asset prices here to stay....
Posted by voiceofreason @ 08:15 AM (964 views) Add Comment
14 Comments
- If you do not have an admin password leave the password field blank.
- If you would like to request a password allowing you to add comments and blog news articles without needing each one approved manually, send an e-mail to the webmaster.
- Your email address is required so we can verify that the comment is genuine. It will not be posted anywhere on the site, will be stored confidentially by us and never given out to any third party.
- Please note that any viewpoints published here as comments are user's views and not the views of HousePriceCrash.co.uk.
- Please adhere to the Guidelines
1. japanese uncle said...
asset prices return to sensible 3.5 x earnings levels.
------------------------------------------------------------------------------
I would rather see 3.0 x net earnings levels. In reality however, we are likely to see 2.5 x net earnings at certain point.
2. japanese uncle said...
When the dust settles we will have a very different economy. Recessions come to an end, and history tells us this one should after four or five quarters, but its legacy will be more economic instability than we have been accustomed to.
---------------------------------------------------------------------------------------------------------------------------------------
At the end of 2009, this will be another comment that will be subject to copying & pasting and mauling.
I can envisage a few mainstream meadia going under quite like Chicago Tribune. The Times is one of them, given such serious deterioration in its quality, Sunday Times in particular ｓ is in shambles (Sunday Times magazine used to be a good read a generation ago) In fact majority of newspapers may go under as people will no longer afford to pay 50-70p daily for sheer rubbish, and 190p for their even worse Sunday versions, let alone precipitous reduction in their advert income. That said, the Daily Mail may well survivie as it provides fun at least.
3. beartil2010 said...
Daily Mail Group is having a very hard timw of it at the moment. Dropped out of the FTSE, declining ad revenues in all regional papers, lost £17m on buying uswitch (or was it the other switching site? One of them), and falling revenues in web advertising because of the current downturn. Having said that, they own a lot of digital brands, so they will pull through as a group I am sure.
I agree that Smithy is proposing 'fixing the recent problems' with more of the same - which will not fix any problems, long term.
4. crunchy said...
One has only to look at comments at the bottom of these Corporate rags to see that they are failing their readers. Let them hang, because they are a big part of the problem.
Smith would never be hired by a serious paper.
5. crunchy said...
The likes of Money Week should be state owned and subscription free. Spot the problem anyone?
We have become lazy and greedy. The company's that nurtured hard work have been offshored.
6. uncle tom said...
There's no clever, painless cure-all for the current ills, but Smith's approach does seem to be an exercise in re-arranging the deckchairs on the Titanic - for want of any better ideas..
I personally believe that the best approach is not to experiment with the more abstract elements of the financial machine, in the vague hope that a different attitude to the management of one of those elements might magically generate a cure; but to look at the core fundamentals of the economy, and address those aspects that are unsustainable - trade and budget deficits in particular. This does mean cutting government spending, and a re-think of the mantra that free trade is always good..
It is also essential that those who are made redundant are not left idle - keeping everyone gainfully occupied, either in work or re-training; should be a top priority.
Sack the 'five-a-day outreach workers' - and teach them how to lay bricks..!
7. nopensionnohouse said...
After a 16-year nice (non-inflationary, consistently expansionary) run
Er, this must be another definition of non-inflationary that Im not aware of. Oh, right. Not including house prices. Got you.
8. mark wadsworth said...
Nopensionnohouse beat me to it, this whole "nice" is a load of tosh (as is everything else that David Smith writes), in hindsight there was plenty of inflation right under our noses (good old fashioned monetary inflation - same old assets, new improved price) as to 'constant expansion' we didn't really have that either, it was all based on debt.
9. tyrellcorporation said...
UT, Good to have you back, I guess you've just been reading from the sidelines for a while.
10. symo said...
.............Hi I'm David Smith and I know sweet fanny adams about economics and basic human pshycology.
11. bidin'matime said...
TC - we can always rely on Uncle Tom for a few wise words now and then.
12. This comment has been removed as it was found to be in breach of our Blog Policies.
13. This comment has been removed as it was found to be in breach of our Blog Policies.
14. This comment has been removed as it was found to be in breach of our Blog Policies.