Recession Will Be The Worst In Modern History

[PricedOutNative]

Telegraph

The economy will take longer to recover from this recession than it did in previous economic slumps and it will take “several years†before banks are lending normally to households and businesses, Mr King said.

The downbeat message came as the Bank disclosed that it was likely to keep interest rates low for far longer than experts had predicted as Britain shakes off the effects of the downturn.

The Bank said that it expected the economy to contract by an annual rate of 5.5 per cent at its lowest point this year – an even deeper dive than experienced in the 1930s – let alone any of the other postwar recessions.

As a result, the Bank is expected to leave borrowing costs on hold at their current record low rate of 0.5 per cent well into next year, if not longer, as well as continuing its £175 billion quantitative easing

It really is like watching a slow motion train crash

[Abstra]

So with interests rates at 0.5% and £125 Billion of QE the economy is expected to contract 5.5%. Unemployment set to reach an admitted 3 million by year end and in reality more like 5 million. Public and personal debt in orbit.

Green shoots, where!

http://www.youtube.com/watch?v=ro_VVXjk-kQ

[XswampyX]

It really is like watching a slow motion train crash

Indeed, but the projectionist is splicing parts of the train journey before the crash back into the crash scene, making things look all right but in the process speeding the train up temporarily and making the crash much worse and go on much longer.

[mrfooty]

Indeed, but the projectionist is splicing parts of the train journey before the crash back into the crash scene, making things look all right but in the process speeding the train up temporarily and making the crash much worse and go on much longer.

Err... Yeah great analogy

[bajista]

But no need to worry because, despite the worst recession on record, house prices can only ever go up. Yeah, Right!

[?...!]

This has already been the worst recession in modern history.

[punter]

they're doing everything to make it worse including not facing up to the deficit, QE and continual low interest rates when they ought to be much higher

[cashinmattress]

they're doing everything to make it worse including not facing up to the deficit, QE and continual low interest rates when they ought to be much higher

The secret, or big question, is...what asset can I put my money into which will hold value, or grow, and at the same time be tax friendly?

We know it's not property, so what is it? Million dollar question, but I reckon it ain't going to be much of anything within the UK.

[OnlyMe]

The secret, or big question, is...what asset can I put my money into which will hold value, or grow, and at the same time be tax friendly?

We know it's not property, so what is it? Million dollar question, but I reckon it ain't going to be much of anything within the UK.

Invest in countries that produce and invest, not ones that want to promulgate a debt fairyland that is entirely bogus and self-harming.

The UK is finished with current policies and actors in charge.

[puppee]

tell us something we didn't know already its oly the sheeple that believed all the spin and BULL they have been spouting, now is the time to come clean and admit they got it wrong and raise interest rates and slash property prices by 50% and start all over again sensibly if not you can forget about property prices its about survival now, lets hope the message starts to get through, i will quite happily cut the value of my property by 50% if every property is devalued by 50%

[OnlyMe]

puppee

We are dealing with the same shit for brains that controlled the system that created this mess.

It would be too much of a climbdown.

[grumpy-old-man-returns]

This has already been the worst recession in modern history.

still sitting in that deflation camp ?? it will be a very lonely camp by xmas.

I notice you have been very quiet of late.

[The Spaniard]

So why don't we drop our debt-based money system and stop paying all that interest to commercial banks just to have a means of exchange?

Many of those very clever but essentially unproductive bankers that live so sumptuously off that interest could then be re-employed in enterprises far more useful than skimming wealth from the rest of us.

Among other things, our money system entails a great waste of talent.

[montesquieu]

I was out in Wokingham (for my sins) on Tuesday night this week and got turned away from two restaurants because I didn't have a reservation. (Both full though I did find somewhere to eat at the third attempt).

There seems to be no shortage of 09 registered tosserwagons round here - the 4x4 brigade appear to be as solvent and as ****-holish as ever.

And there are more than a few sold boards and while I've been waiting for them to turn back into for sale signs, it hasn't happend much yet around here.

I participate in hifi boards and while I've seen the odd 'credit crunch' sale after someone gets made redundant, high end hifi prices seem as mental as ever - there is the odd bargain but that's usually down to someone pricing stuff wrongly, rather than a desperation sale,

Don't get me wrong I'm a committed bear and have been since I sold up in 2005 (too early I know, but I moved county then and refused to buy back in in the midst of what I saw was an obvious bubble - and I didn't find this site till 2007). I'm paying £1600 rent for a large 4-bed double garage in rather pleasant Berkshire village, in a cul de sac bordering countryside, where an identical house recently 'sold' (we'll see if it completes!) that was on at £695k (a 2% yield which remains as piss-poor as ever). This indicates to me that we have a long, long way to fall yet ....

So I just don't get the levitation act. WTF is keeping the party going? Where is this recession that's the worst in modern history because I'm just not seeing it yet!

[MOP]

So why don't we drop our debt-based money system and stop paying all that interest to commercial banks just to have a means of exchange?

Many of those very clever but essentially unproductive bankers that live so sumptuously off that interest could then be re-employed in enterprises far more useful than skimming wealth from the rest of us.

Among other things, our money system entails a great waste of talent.

A couple of my school friends became bankers. I would say they have average intelligence at best compared to those who went on to work in sciences, engineering, medicine etc

You don't actually need to be that clever to get into banking.

Edited August 13, 2009 by MOP

[Timm]

So why don't we drop our debt-based money system and stop paying all that interest to commercial banks just to have a means of exchange?

Many of those very clever but essentially unproductive bankers that live so sumptuously off that interest could then be re-employed in enterprises far more useful than skimming wealth from the rest of us.

Among other things, our money system entails a great waste of talent.

See the gilts thread.

[Take Me Back To London!]

Is this going to wobble the house price pick-up of late?

FTSE crash tomorrow or is just going to go up even more on the news?

I expect the Pound is going to go down the pan on that lovely snippet as well.

Edited August 13, 2009 by Take Me Back To London!

[expatowner]

You're plan is to then buy a cut price house but in reality you won't have a job or funds to buy like everyone else. I doubt many on here have the means or the drive to own property.

Excellent Sibley

that cheered me up.

[twatmangle]

What makes me laugh on here is how you wish for bad times.

Try working for a living and making the right choices.

You bought in 2007 right?

[moneyfornothing]

What makes me laugh on here is how you wish for bad times.

Lets have it right. You're hoping everything goes pear shaped ie unemployment, mortgage defaults , repossessions, business failing and BTL landlords all crash and burn.

You're plan is to then buy a cut price house but in reality you won't have a job or funds to buy like everyone else. I doubt many on here have the means or the drive to own property.

That tells me you're just bitter and twisted Asda supermarket trolley collectors or the like who drive round posh estates wondering how this or that bloke bought their house. Must be inherited eh?

Try working for a living and making the right choices. The time you spend on here could be put to better use. Try flipping burgers part time at Mcdonalds. You're going to need the extra money when your landlord puts your rent up next year.

And wish you the same..

[NotMyHouse]

SNIP

Sibs, are you an insommniac or on a different time zone?

[Shrink Proof]

The economy will take longer to recover from this recession than it did in previous economic slumps and it will take “several years†before banks are lending ABnormally to households and businesses, Mr King said.

Corrected the Telegraph's typo for them.

(Ooops - and my own...)

Edited August 13, 2009 by Shrink Proof

[VeryMeanReversion]

> it will take “several years†before banks are lending normally to households and businesses, Mr King said.

I wonder if he thinks 2007 was normal?

VMR.

[The Spaniard]

A couple of my school friends became bankers. I would say they have average intelligence at best compared to those who went on to work in sciences, engineering, medicine etc

You don't actually need to be that clever to get into banking.

No doubt there is a wide range of talent in banking.

Included are many top-end people, for example quants with Oxbridge firsts and PhDs in maths, who could make a far greater overall contribution to society if they were more productively employed.

[bajista]

Included are many top-end people, for example quants with Oxbridge firsts and PhDs in maths, who could make a far greater overall contribution to society if they were more productively employed.

I'm not sure that these people are so great. Clever yes, but otherwise...... I was speaking to a non-quant who managed a deaprtment of these guys - his problem?- their communication and social skills as well as their practical common sense was pretty much zero in most cases. He was trying to recruit people with similar intelligence who could also operate in the real world but he wasn't finding them.