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Saving May Cause Double-Dip Recession

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http://www.telegraph.co.uk/finance/personalfinance/savings/7887742/Saving-may-cause-double-dip-recession.html

Prudent households trying to save are in danger of pushing the economy back into recession, economists have warned.

Official figures suggest that last year's recession was deeper than originally thought and that families had stopped spending - a move that could lead to a double-dip recession.

The data came as Standard & Poor's, the credit rating agency, kept Britain's debt rating on negative watch. S&P said it had concerns about the forecasts laid out by George Osborne, the Chancellor.

The gross domestic product figures indicated that the economy fell by 6.4 per cent during the 18-month slump, worse than the 6.2 per cent previously reported by the Office for National Statistics.

It also confirmed that GDP grew by 0.3 per cent during the first three months of this year, a slight dip on the 0.4 per cent of growth in the last four months of 2009. However, the figures for the first quarter revealed there was a 1.5 per cent rise in government spending which added 0.4 per cent to the total growth figures.

Household expenditure fell by 0.1 per cent. The ONS said the fall in household spending was particularly marked in transport, culture and recreation.

This means that, without government spending on the NHS and social services, the economy would have been back in recession during the first three months of the year. Economists said the Treasury's public sector cuts would put the economy in a perilous position. Brendan Barber, the TUC general secretary, said cuts were "the worst medicine possible for a sickly patient".

Fecklessness to save the economy.

Every must be at the reckless best to save the economy.

It's the saveless recovery.

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I love it.

Now the prudent responsible people are being blamed. But fo course its our fault. We should MEW until we bleed and then just get credit cards.

The world is full of 'tards. Its official.

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Maybe if people didn't have to pay the vast majority of their disposable income to service the ridiculously high debt on their shitty little houses then they could save aswell as spend. Thus reviving the ailing economy.

HPC. It's the future.

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Maybe if people didn't have to pay the vast majority of their disposable income to service the ridiculously high debt on their shitty little houses then they could save aswell as spend. Thus reviving the ailing economy.

HPC. It's the future.

Exactly! Property prices are preventing any meaningful recovery. We need them to fall by about 50%, bring in properly regulated mortgages and only thereafter see rises around the level of increases in incomes. Suddenly the whole economy would move forward. Wages would have fallen, so we can even manufacture our own household goods. We could even get exporting and having a 'balance' of payments that does not constantly imply we cannot pay our way!

We need a short sharp reduction to get this done even if it's a double dip for a while, without a BROWN borrow and waste session.

Edited by plummet expert

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Or drugs and whores? You can't lose...

+1

Can you buy shares in whores? If not, theres a new business line for the banks. Financial Whore Derivatives. Always go down though :(

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+1

Can you buy shares in whores? If not, theres a new business line for the banks. Financial Whore Derivatives. Always go down though :(

http://en.wikipedia.org/wiki/Daily_Planet_(brothel)

You can buy shares in whorehouses.

Where there are shares, there are usually derivatives (puts and calls).

FWDs are alive and well it seems.

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http://en.wikipedia.org/wiki/Daily_Planet_(brothel)

You can buy shares in whorehouses.

Where there are shares, there are usually derivatives (puts and calls).

FWDs are alive and well it seems.

Good stuff. Buy a single share, go to the AGM and have all the fun you want for free presumably. Well that's what the breweries used to do.

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Good stuff. Buy a single share, go to the AGM and have all the fun you want for free presumably. Well that's what the breweries used to do.

Ah yes, the "tour". I remember those days (barely).

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Guest spp

How long before hoarding PMs makes you a financial terrorist?

Saving May Cause Double-Dip Recession - Insane!

"Double-dip" is starting to get on my t£ts almost as much as "green shoots"

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What is this shit?

When you have a chancellor threatening to wreak havoc on your family's future are you supposed to go and divert your savings to a big stupid telly and a new car? When you're out of a job and your kids need new shoes having those things ain't going to help. FFS :)

I know I'm describing exactly the mentality people adopt in times like these but isn't that what the Tories want us to do, look after ourselves? Reckless purchases of items I don't even need are not in my best interests. If they want people to spend they should be working on building confidence, not destroying it. They can't have their cake and eat it.

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The absolute insanity of debt based money.

Don't save - unless you buy stuff you don't need we can't service the debt.

If we can't get banks to create money by lending it to us and eachother (at interest) the entire economy collapses!

Reform money and stop this stupidity.

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If this is the idiotic attitude of the mainstream media and their 'expert' economists, than bring on the double dip. Much as I'd rather people didn't suffer, a proper lesson in prudence rather than profligacy would at the very least get the ostriches head out of the sand.

I shall continue to save like an absolute freak. These days there's nothing other than rent, food (reduced), petrol and mild entertainment that goes out of my pay packet anyway. And I have a pretty good life on it. I'd rather not clutter up my place with a load of crap.

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We have spent too much.

We have got used to spending too much.

No one wants anything thats a bit old and tatty.

BOLLCKS!

Did you see the thing about the swimming pools? They have lost the money to tart them up. So people are upset. Well I'm sorry but if you want a jazzy swimming pool p1ss off to a private club and see how much that costs.

The real economy is so small - it really is like "open all hours" rather than dallas or dynasty.

We've never had it so good! True! And we should never expect to have it so good again.

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  • 140 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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