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Greek Recession Deepens As Austerity Cuts Kick In

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http://uk.finance.yahoo.com/news/greek-recession-deepens-as-austerity-cuts-kick-in-afp-21dcf04fe0eb.html?x=0

Greek recession deepens as austerity cuts kick in
18:04, Thursday 12 August 2010
Greece is in the grip of deepening recession, official data showed on Thursday, as a stinging austerity programme agreed with the EU and IMF in exchange for a debt rescue package begins to bite.
The national statistics office said the downward spiral accelerated in the second quarter as a barrage of wage and pension cuts plus tax rises sapped consumer demand.

I doubt it is contained.

Just wait until our austerity meaasures kick in. Its going to be ugleh. House prices? I am no longer sure it will be a crash, more like a laying to waste scenario.

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I just don't think we'll get the complete crash many are hoping for. I lived through the early 90s crash with 15% interest rates and higher unemployment than now and yes, there were big falls, but not the 50% plus some people are hoping for.

We have no massive industrial employers to fail now, aside from the public sector (closing hospitals or prisons?) and only debt default would bring a total crash. I suppose that's possible but even Greece haven't actually 'gone under.' Yet?

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 So its rubber plates at the Taverna from now on.

I can rember when the recession of the 80's hit and Orthodox Jews adopted velcro in their suits--to save money when "tearing of clothes" rituals were used to demonstrate repentance.

I am uncertain if these patterns of behaviour are in the spirit of things though. :blink:

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http://uk.finance.yahoo.com/news/greek-recession-deepens-as-austerity-cuts-kick-in-afp-21dcf04fe0eb.html?x=0

Greek recession deepens as austerity cuts kick in
18:04, Thursday 12 August 2010
Greece is in the grip of deepening recession, official data showed on Thursday, as a stinging austerity programme agreed with the EU and IMF in exchange for a debt rescue package begins to bite.
The national statistics office said the downward spiral accelerated in the second quarter as a barrage of wage and pension cuts plus tax rises sapped consumer demand.

I doubt it is contained.

Just wait until our austerity meaasures kick in. Its going to be ugleh. House prices? I am no longer sure it will be a crash, more like a laying to waste scenario.

All the signs of a western world slowdown are there. The bloated SE and SW house market will surprise by the extent of the falls. It will be steeper than most other places - the higher they rise the lower they fall. We are not Greece, but the cuts will bite very hard at 25% - the most in any modern peacetime.

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All the signs of a western world slowdown are there. The bloated SE and SW house market will surprise by the extent of the falls. It will be steeper than most other places - the higher they rise the lower they fall. We are not Greece, but the cuts will bite very hard at 25% - the most in any modern peacetime.

Watched the news yesterday about Govie cutting playgrounds. The comments of the parents suggested to me that the public are still a looong way from 'getting it'. The noughties are over but I think it will be 2011 before most people realise.

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13.8% of mortages are BTL, factor in self-cert....................once the prices drop, there be a rush for the door.........even the gentimans agreement between the FED & BOE will not be able to stop a rout in the price of the £. The BOE will have NO choice but bump up rates & ...........Goodnight!

Mike

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I just don't think we'll get the complete crash many are hoping for. I lived through the early 90s crash with 15% interest rates and higher unemployment than now and yes, there were big falls, but not the 50% plus some people are hoping for.

We have no massive industrial employers to fail now, aside from the public sector (closing hospitals or prisons?) and only debt default would bring a total crash. I suppose that's possible but even Greece haven't actually 'gone under.' Yet?

We still had the vestiges of the core of a balanced economy then - be it one hooked on too much debt for consumption.

That is not the case now and the competitive forces both internally and externally combined with this much bigger bubble in costs will be crippling.

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The noughties are over but I think it will be 2011 before most people realise.

More like 2050.

If the "great" British public were any slower on the uptake, they'd be going backwards.

In fact, that could explain a lot.

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I just don't think we'll get the complete crash many are hoping for. I lived through the early 90s crash with 15% interest rates and higher unemployment than now and yes, there were big falls, but not the 50% plus some people are hoping for.

In the 90s recession Britain had wage inflation: I don't know about the population as a whole, but certainly my salary went up about 60% in four years. Rising wages masked the crash in real terms.

And if Camoron actually goes through with his public sector cuts, the impact on an economy which is now dominated by government spending will be enormous.

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I really hope we do get to grips with the deficit but going around watching life in the shopping centers Bars football grounds nothing at all seems to have changed people on benefits still quite well off , woman still flooding into the shopping centers buying bags full of expensive tat, bars and restaurants busy, football grounds still enticing punters at £30+ per ticket, Sky subscriptions rising every-time they report, people still booking holidays /cruises like its the last one, etc etc..

Hardly any Change at all since Brown and Blair days hoping and waiting but have a bad feeling that the VIs will win out and force the government to continue as we are

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In the 90s recession Britain had wage inflation: I don't know about the population as a whole, but certainly my salary went up about 60% in four years. Rising wages masked the crash in real terms.

And if Camoron actually goes through with his public sector cuts, the impact on an economy which is now dominated by government spending will be enormous.

Head, nail, hit on.

And that is precisely why this crash will be different in its severity to the Great Crash of '89-'96: massive reliance on non-productive workers who helped build Brown's* miracle economy.

IMO the Koalishon are seeing that, in order to build, some demolition has to occur first.

_____________________

*When is Brown due to resign from the House? He is apparently drawing a full salary but doesn't show up for work.

Edited by Realistbear

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  • 153 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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