Wednesday, Dec 10, 2008
There's going to be a recession!
BBC: Darling says recession now likely
Alistair Darling has admitted that the UK economy is likely to enter a recession, but expects growth to return "in the second half of next year".
Describing the current economic situation as "difficult", the chancellor said continuing low interest rates would help the economy recover.
Speaking to a key Commons committee, he added that deflation was not a risk.
Posted by phdinbubbles @ 05:31 PM (1526 views) Add Comment
23 Comments
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1. str 2007 said...
I think he said 6 months to a year ago there wouldn't be a recession.
Our we now supposed to believe all will be ok by June 2009.
If excess spending has effectively created the recession, you cannot spend your way back out as you will end up with a bigger debt than you started with - which was too big which is why we're having a recession.
Have I lost the basic ability to comprehend common sense ?
Guess not I just don't have an election to win at any cost.
2. phdinbubbles said...
I can remember a car mechanic telling me there was going to be a recession last January when I took my car in for its mot - he said I should hold off trading it in for something newer for several months and get a better deal. How did he know there was going to be a recession? Did he have a secret hotline to Downing Street? Oh, that's right, everyone knew.
3. dohousescrashinthewoods said...
ROTFL
4. str 2007 said...
phdinbubbles
I sell bits of wood out of my bedroom, I'm the one who told your mechanic. He actually knew 6 months ahead of you having your car serviced, you should get your oil changed more often !
5. stillthinking said...
The UK is going to be in recession for 2009,2010 and thats if we are lucky. Otherwise just keep going.
6. little professor said...
7. phdinbubbles said...
@str 2007
should i remove sarcasm from my posts and comments from now on to avoid confusion?
How do I change my headline tag from 'There's going to be a recession!' to 'By golly and gosh, is Darling the last person to realise there's going to be a recession?'
8. phdinbubbles said...
Or perhaps you were being sarcastic and I didn't pick it up - it's been a long day!
9. icarus said...
Yeah right, Badger. No risk of deflation - Broon has saved the world from that fate.
10. paul said...
Does he say there's no risk of deflation because he plans to print money, or does he say that because he's a numpty?
11. plato said...
We've been in a recession for the last couple of years. The growth has been based on debt,overvaluation and manipulated figures, spun into a web of confusion. Many really knew this but there was no voice loud enough in the paradise of wealth.
12. Hanging On said...
If there is no risk of deflation then why are they talking of more rate cuts??????????
Why did they cut them in the first place then???
13. Yoss said...
Wow he really is earning his money today. I guess when the ONS can't hide the figures any more then it time to fess up.
However house prices will only fall 20% from peak , some guy at the ONS told me.
14. a saver said...
Remember this is the guy who promised we would have just under 2% growth this year.
15. str 2007 said...
Sorry phd
I was only joking about. I didn't even read your post properly did I, MOT not Service.
Having read the article it seems Darlings dreams will come true if banks start lending.
Is he actually aware that's what caused the problem ?
16. phdinbubbles said...
@str2007
it's quite alright - being sarcy doesn't work very well when written down - and my comment above wasn't written well. The point i was trying to make was that every man and his dog has seen this recession coming a long time - Darling was telling that treasury committee that he now expects a recession - oh really! I'm doing it again now.
I think he is aware of the causes of the problem, but is more concerned with trying to present an image of competence to save his own @rse - and that necessarily involves playing innocent and deflecting the blame onto others - admitting that the 'miracle economy' was a sham built on an asset and credit bubble isn't going to do labour's electoral chances much good. Self-preservation's the name of the game, although as several have pointed out on here - if they do get re-elected then they'll have to face a big steaming pile of sh!t of their own making.
17. japanese uncle said...
Despite the falling pound, I saved a lot of money today when I shopped at Tesco, a Kenwood kettle @28.47 (26% mark down), and a Rowse honey @16% discount Edinburgh Tea & Coffee Co.'s Columbian coffee (22.5% discount) with 6 pounds discount voucher (on condition that over 40 pounds are spent). Rowse and Edinburgh Tea & Coffee Co. have been two brands that have never compromised in pricing. Overall my shopping basket is almost 23% cheaper than a year ago. Some deflation is already under way, indeed. .
18. japanese uncle said...
This means corporate profits are squeezed quite badly, eventually causing salary reduction of the employees of the firms. Those employees are consumers at the same time and will no longer able to afford to buy things as they used to a year ago. Prices must come down to the affordable level from their point of view. Then corporate profits will even further squeezed. A classic case of the deflation spiral.
19. amjidk said...
they'll probably just print money!!
20. hash browne said...
Right, I understand that they can create inflation by printing more money, but what I don't understand, is who do they give this new money to? Where does it go? We only earn what we earn. Any help?
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