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Darling Predicts End Of Recession

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"My priorities are clear: keeping people in work, getting credit flowing"

So he wants more indebtedness?

It is scary that he thinks that is something he can cause. Any intervention, by definition, will have exactly the opposite effect.

Job creation in the public sector will be bought at the expense of jobs in the private. Any credit drained from the markets by government (to give to special interests) will result in further lack of credit for the private sector.

The people, and those in government need to understand that either, the government cannot create jobs and it cannot create credit. It cannot create wealth full stop. It can only steal and play at robin hood - usually reverse robin hood.

Edited by Where is my pen?

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"My priorities are clear: keeping people in work, getting credit flowing"

So he wants more indebtedness?

I beleive business lending ie productive investment, is at a low and declining.

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It is scary that he thinks that is something he can cause. Any intervention, by definition, will have exactly the opposite effect.

Job creation in the public sector will be bought at the expense of jobs in the private. Any credit drained from the markets by government (to give to special interests) will result in further lack of credit for the private sector.

The people, and those in government need to understand that either, the government cannot create jobs and it cannot create credit. It cannot create wealth full stop. It can only steal and play at robin hood - usually reverse robin hood.

no, what's scary, is that despite witnessing the results of govt. intervention, you still continue to believe in fairy stories about how the govt. can't create jobs and can't create wealth. Oh, and banks can and do create credit. i think it's called making a loan, and they can do that anytime they want......irrespective of what the govt. are up to.

What strikes me as odd about Darling [and he's a very odd kind of freak] is that he wants the labour party to be the party of spend to ensure they don't 'scrapheap' people as he put it. Fine, but then why does he feel the need to raise taxes in the form of the VAT increase in January ? My guess he's confident about that particular stimuli having done it's job in time for it to be returned to it's previous level.....and anyway they can and will respond with another cut if they need to.

They probably won't, because we're now on the road to this decade looking very much like the last one.

I knew i should have bought that f******* 3-bed house at the tail end of march. Oh well, that's what you get for listening to bs from idiots who don't have a clue what they are talking about.

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snip

They probably won't, because we're now on the road to this decade looking very much like the last one.

I knew i should have bought that f******* 3-bed house at the tail end of march. Oh well, that's what you get for listening to bs from idiots who don't have a clue what they are talking about.

how?

we started the decade with golden rules and prudence...is this what we are returning to?

and you should take you own decisions. dont blame a website of anonymous posters. specially one where the general sentiment is in the title.

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I beleive business lending ie productive investment, is at a low and declining.

Indeed, last week the ONS data suggested business investment had declined by 18.4% YoY in the UK by the end of Q2 2009.

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Oh, and banks can and do create credit. i think it's called making a loan, and they can do that anytime they want......irrespective of what the govt. are up to.

Is anybody holding a gun to your head (yet?) to take a loan?

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Is anybody holding a gun to your head (yet?) to take a loan?

well, Darling is insisting this is the only way forward..he has done ALL he can to get credit moving again.

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The people, and those in government need to understand that either, the government cannot create jobs and it cannot create credit. It cannot create wealth full stop. It can only steal and play at robin hood - usually reverse robin hood.

Gordon Brown believes in precisely the above (Book: Tom Bower - "Gordon Brown"). Hence the present situation. The Government's solution is more of the same.

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My father in law to be (FILTB) is a lorry driver. The company he works at is still in the process of auctioning off trailers, as they have too many for the business out there, with no signs of it picking up. They have gone from 300 to 50, with most of the buyers being foreign (apparently), yet they still only have about 30 in use at any time.

They have shed staff, with my FILTB hanging on by his finger nails, despite decades of experience. Other haulage companies are going bust or facing similar down sizing.

I asked (on Saturday) if it was worse now than a year ago - he said it was much worse, with no sign of it getting better. He is worried about bounced cheques and whether he will have a job to go back to, each time he comes home.

Recovery? What recovery?! There is still too much capacity and little demand. The government can paper over the cracks with credit, but the underlying problems remain - how do people with no jobs, on the edge of bankruptcy, borrow to fund growth?

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how?

we started the decade with golden rules and prudence...is this what we are returning to?

and you should take you own decisions. dont blame a website of anonymous posters. specially one where the general sentiment is in the title.

i'm not referring specifically to clueless posters, but many of the meejia talking heads and doom mongers who would talk nonsense.

I can take responsibility for my own decisions, but when so many mistruths are peddled from all quarters about the nature of public finances and the govt. role, then it's beholden on people to cut through the bs.

i've never doubted there will be continuin problems in relation to unemployment, but all the crap spouted about our children paying for bank bailouts and increased public debt levels is baseless scaremongering.

We'll go back to arbitrary golden rules and prudence in the medium term, but it will be meaningless posturing. The reality is the govt. sector intervenes to keep the neoliberal charade going. I'm not optimistic about where we are headed, just more certain that it's a lot further away than people think. They [govt. and the central bank] CAN keep kicking the can down the road.

Edited by spivtastic

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I knew i should have bought that f******* 3-bed house at the tail end of march. Oh well, that's what you get for listening to bs from idiots who don't have a clue what they are talking about.

:lol:

Don't know where you are, but prices around my way haven't moved since then.

Jump in.. it's never too late to miss the boat ;)

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all the crap spouted about our children paying for bank bailouts and increased public debt levels is baseless scaremongering.

LOL? Baseless?

Hahahahahaah. This is one of the funniest comments I've read in ages! :lol:

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LOL? Baseless?

Hahahahahaah. This is one of the funniest comments I've read in ages! :lol:

in case you haven't noticed, deficit spending is the only thing giving rise to the greenshoots. Forget all the hype about queasing, it's the govts. fiscal intervention which is making the difference at present.

That will continue to be the case for the next few years, the plans to reduce that deifcit is a medium-term objective. So in the short-term we get out of recession based on deficit spending. What do you think would happen without it ?

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"My priorities are clear: keeping people in work, getting credit flowing"

So he wants more indebtedness?

Yes.

He is very, very stupid.

Very.

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Hi Columbo !

Off topic but have to say - took me ages & ages to remember who your avatar is, pal.

The fine upstanding Doug Stanhope.

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:lol:

Don't know where you are, but prices around my way haven't moved since then.

Jump in.. it's never too late to miss the boat ;)

round my way it's scary the lack of supply. It's also worrying to see what is selling and at what prices, when you think the 95% and 100% ltv products haven't been accessible to borrowers for some time.

Lot of cash, returning confidence, low IR's making it a peculiar kind of recession for many pre-GFC borrowers.

the best thing i can hope for is stagnation over the next 12 months. And as approvals increase this looks unlikely.

I agree with the consensus that Q2 this year was the low. There are no financial shocks to cause a second leg down, only the risk of some mega brain farts policy wise from the next administration. It's more likely they'll look at policies that boost rather than keep a lid on prices.

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i've never doubted there will be continuin problems in relation to unemployment, but all the crap spouted about our children paying for bank bailouts and increased public debt levels is baseless scaremongering.

my my. you dont quite realise the gravity of the situation yet.

there will be large increases in tax, government debt must be paid off. where do you think the government gets its income from?

ask yourself this question. if there are no repercussions of massive borrowing and spending i.e the current government strategy is growing the economy - why dont they do it all the time?

the government borrowing and spending at the moment is not being used to finance investment and growth - it is being used to prop up the system.

its is essentially trying to replace the market. see what happens when you try to dictate a market.

the government is not spending to invest. its forcing you to spend the money you will earn in the future right now.

Edited by mfp123

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two years ago, the idea of the government stepping in with discounts for buying cars and buying into banks would be ridiculous. it would be frowned and laughed upon of as artificially running the economy.

right now the market is not being dictated by demand but by the government itself, forcing upon us how we should be spending our money.

take for example the cash for cars deal. was this a success?

really think about what this entailed in terms of a market. what did it actually achieve?

Edited by mfp123

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