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Dead Body And Denial Analogy

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Listening to Radio 5 Live on the drive to work this morning and they had an economist (I think) on who was describing the differences between various countries' economies in terms of how they would treat a dead body in the kitchen.

He said with Britain, there was blood everywhere, but we have acknowledged the problem and were busy cleaning it up.

He said with Germany, the kitchen is spotless, the dead body is tucked neatly in the corner under a white sheet.. everytime more blood seeps out, they just put a larger sheet over it.

He said of the USA, they've propped up the body in a chair, and are still trying to feed it tea and biscuits, such is their level of denial.

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Listening to Radio 5 Live on the drive to work this morning and they had an economist (I think) on who was describing the differences between various countries' economies in terms of how they would treat a dead body in the kitchen.

He said with Britain, there was blood everywhere, but we have acknowledged the problem and were busy cleaning it up.

He said with Germany, the kitchen is spotless, the dead body is tucked neatly in the corner under a white sheet.. everytime more blood seeps out, they just put a larger sheet over it.

He said of the USA, they've propped up the body in a chair, and are still trying to feed it tea and biscuits, such is their level of denial.

:lol:

Made me chuckle!

Edited by mirage

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I think with Britain it's more a case of the government standing over the body loudly telling everybody that they've made the tough but necessary decision to clean up the mess, what a great job they're going to do of it, any minute now they're going to get the mop and marigolds out and get started etc etc.

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Listening to Radio 5 Live on the drive to work this morning and they had an economist (I think) on who was describing the differences between various countries' economies in terms of how they would treat a dead body in the kitchen.

He said with Britain, there was blood everywhere, but we have acknowledged the problem and were busy cleaning it up.

He said with Germany, the kitchen is spotless, the dead body is tucked neatly in the corner under a white sheet.. everytime more blood seeps out, they just put a larger sheet over it.

He said of the USA, they've propped up the body in a chair, and are still trying to feed it tea and biscuits, such is their level of denial.

He said with Britain, there was blood everywhere, but we have acknowledged the problem and were busy cleaning it up with a fork.

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Very good.

Now what was the particular problem that the dead body was an analogy for? We didnt all listen you know.

The structural deficit in the respective economies (i.e. debt crisis needing sorting out). He was on R4 as well. I guess Iceland just incinerated the body and threw the ashes in the sea... (not a bad strategy)

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The structural deficit in the respective economies (i.e. debt crisis needing sorting out). He was on R4 as well. I guess Iceland just incinerated the body and threw the ashes in the sea... (not a bad strategy)

Ah I see. Well the UK one wasnt a good analogy at all then was it?

I guess we have acknowledged that it is there. What we are doing is saying that we are going to be doing something about it, whilst at the same time ordering a truck load of more dead bodies for delivery direct into the kitchen, which are being dumped through the window as we speak into a growing pile on the kitchen floor.

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Listening to Radio 5 Live on the drive to work this morning and they had an economist (I think) on who was describing the differences between various countries' economies in terms of how they would treat a dead body in the kitchen.

He said with Britain, there was blood everywhere, but we have acknowledged the problem and were busy cleaning it up.

He said with Germany, the kitchen is spotless, the dead body is tucked neatly in the corner under a white sheet.. everytime more blood seeps out, they just put a larger sheet over it.

He said of the USA, they've propped up the body in a chair, and are still trying to feed it tea and biscuits, such is their level of denial.

And useless professional economists are laughing at the American corpse for being deader than the German one...

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Good analogy although I would say that the cleaners in the British kitchen would do a better job if they concentrated on the blood that is continuing to spray around the kitchen as they try to clean it up. Concentrate on the source of the problem.

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Good analogy although I would say that the cleaners in the British kitchen would do a better job if they concentrated on the blood that is continuing to spray around the kitchen as they try to clean it up. Concentrate on the source of the problem.

It would also help if Merv would stop coming into the kitchen carrying buckets of blood to pour all over the body in the mistaken belief that this will somehow bring it back to life.

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It would also help if Merv would stop coming into the kitchen carrying buckets of blood to pour all over the body in the mistaken belief that this will somehow bring it back to life.

Almost what I thought when I read it.

Mervyn King has a blood transfusion set up on the body and as the blood pours out of the wounds he shouts "MORE BLOOD!!"

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The UK government is resentfully clearing up the body, in the hopes that this will keep the rampaging elephant in the room happy enough to stop killing everyone in sight.

EDIT: Its a dreadful analogy that shows the crisis the economics profession is suffering.

Until the UK government acts to bring down house prices, then it is doing precisely nothing to fix the economy. House prices are the crisis.

Edited by (Blizzard)

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I heard this and could'nt believe he was claiming the UK were doing better than others in recognising there was a corpse in the room.

Most people in this country, as long as interest rates stay low and house prices stay high (and their jobs stay safe), are in complete denial about the nature of the crime that has taken place; just look at asking prices on Rightmove, or those brainless herds who swept into the new Westfields mall in Stratford the other day. And we have a Chancellor who thinks Britain can be a global bystander, nursing its zombiefied housing market (the corpse that wont die!) while other countries get on with the messy business of cleaning up the crime scene.

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The UK government is resentfully clearing up the body, in the hopes that this will keep the rampaging elephant in the room happy enough to stop killing everyone in sight.

EDIT: Its a dreadful analogy that shows the crisis the economics profession is suffering.

Until the UK government acts to bring down house prices, then it is doing precisely nothing to fix the economy. House prices are the crisis.

But the level of debt (and payability of it) is the crisis. IMO it's exaggerating to say that house prices are the crisis; they contributed hugely to the banking collapse in over-leveraging, but acting to bring them down doesn't do the reverse. I'm in favor of lowering prices, but how exactly do you see millions of people being plunged into negative equity and banks having hugely elevated LTVs on their mortgage books solve the debt crisis?

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But the level of debt (and payability of it) is the crisis. IMO it's exaggerating to say that house prices are the crisis; they contributed hugely to the banking collapse in over-leveraging, but acting to bring them down doesn't do the reverse. I'm in favor of lowering prices, but how exactly do you see millions of people being plunged into negative equity and banks having hugely elevated LTVs on their mortgage books solve the debt crisis?

House-prices are the reason that so many people are in debt. They are the mechanism by which debt is transferred to the masses.

Since housing is an essential, house prices make massive debt almost compulsory.

The problems we see now come from the withdrawal of debt, in an economy where costs have been inflated beyond all reason due to house prices (and other economic rents).

There is no pain-free solution. However, the idea that negative equity is a problem is basically a lie.

My car is in negative equity, is that a problem?

Edited by (Blizzard)

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I heard him on R4. If I caught the introduction right, he's from Ashmore, who have a good track record with investing money and are about to enter the (bottom of the) FTSE 100.

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Listening to Radio 5 Live on the drive to work this morning and they had an economist (I think) on who was describing the differences between various countries' economies in terms of how they would treat a dead body in the kitchen.

He said with Britain, there was blood everywhere, but we have acknowledged the problem and were busy cleaning it up.

He said with Germany, the kitchen is spotless, the dead body is tucked neatly in the corner under a white sheet.. everytime more blood seeps out, they just put a larger sheet over it.

He said of the USA, they've propped up the body in a chair, and are still trying to feed it tea and biscuits, such is their level of denial.

Not close re the UK.

It's more like that old picture of one guy digging a hole and ten to fifteen others standing around the edge 'managing' it. Link anyone?

I personally think that's where we are. We've got the public sector en masse looking (but not touching) the body discussing what they could do about it. Whilst the body does what most dead bodies do, and discharges the contents of it bowels into the floor leaving even more of a mess with no progress to actually show.

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House-prices are the reason that so many people are in debt. They are the mechanism by which debt is transferred to the masses.

Since housing is an essential, house prices make massive debt almost compulsory.

The problems we see now come from the withdrawal of debt, in an economy where costs have been inflated beyond all reason due to house prices (and other economic rents).

There is no pain-free solution. However, the idea that negative equity is a problem is basically a lie.

My car is in negative equity, is that a problem?

But the problem we're talking about is national debt, not personal debt. Comparing cars to houses re equity is pointless, totally different assets. Negative equity is not a problem till you need to move or lose your job, and banks with mortgage books stuffed with high LTVs or >100% LTVs do not have assets to support their loans (part of Northern Rocks original problem). Anyone who thinks negative equity taken overall is not a problem is deluded. Ask the millions of families who were stuck overcrowded in one and two-bed houses for years in the early nineties whether it was a problem - I guess they'll all lie to you.

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But the problem we're talking about is national debt, not personal debt. Comparing cars to houses re equity is pointless, totally different assets. Negative equity is not a problem till you need to move or lose your job, and banks with mortgage books stuffed with high LTVs or >100% LTVs do not have assets to support their loans (part of Northern Rocks original problem). Anyone who thinks negative equity taken overall is not a problem is deluded. Ask the millions of families who were stuck overcrowded in one and two-bed houses for years in the early nineties whether it was a problem - I guess they'll all lie to you.

The deficit wouldn't be an issue (OK, it would be less of an issue) if we weren't broke already because of the cost of living.

Negative equity on a house really is no different to negative equity on a car. The fact that people see a difference is a symptom of the housing mania.

There is no reason that banks couldn't permit the transfer of mortgage debt, for example. Allowing families to move, whilst maintaining the same (or better) LTV, and not affecting the banks risk position in any way.

I'm not saying people don't suffer when they get into negative equity, but that isn't caused by the negative equity itself. It is caused by the banks reaction to it.

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  • 343 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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