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Uk Economy At Dangerous Junction, Warns Item Club

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http://www.bbc.co.uk/news/business-15326778

The UK economy has stalled at a dangerous junction, according to independent forecaster Ernst and Young.

The body, whose Item Club uses the same forecasting methods as the government, says the economy needs new growth measures to get back on track.

It says uncertainty across the eurozone and a slowing world economy is undermining business confidence.

Ernst and Young also says the Bank of England's new quantitative easing (QE) bout is unlikely to prompt recovery.

The Item Club has downgraded its forecast for gross domestic product (GDP) to just 0.9% this year, well below the 1.4% it predicted three months ago.

It says growth should pick up to 1.5% in 2012, although that is also well under the 2.2% it previously predicted.

Damning stuff, even the fantasy models are showing it's all turning to 5h1t and that QE will not achieve recovery.

Still shocking unexpected news for everyone on here....

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http://www.telegraph.co.uk/finance/financialcrisis/8830575/UK-economy-brought-to-grinding-halt-by-euro-crisis.html

The euro turmoil has led to the respected Ernst & Young ITEM Club cutting by almost fifty percent its prediction for British economic growth in 2011 since the summer. It is now expecting the economy will grow by just 0.9 percent this year, signalling almost zero growth before the end of the year.

The forecaster also warned that the recent announcement from the Bank of England that it as adding another £75 billion of quantitative easing was unlikely to help restore Britain’s recovery. It recommends that the Bank should consider cutting interest rates from 0.5 percent to 0.25 percent.

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The Tories have been attempting to run the last couple businesses that make things out of the country with their new climate change laws. And the Tories have raised taxes, the VAT increase and the income tax increase.

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http://www.bbc.co.uk/news/business-15326778

Damning stuff, even the fantasy models are showing it's all turning to 5h1t and that QE will not achieve recovery.

Still shocking unexpected news for everyone on here....

Remind me what lower growth does to the UK's deficit reduction plans?

Presumably the solution to the problem is the same failed ones as before, more borrowing by the government? No calls to cut spending and taxes, and make private sector work relatively more attractive? I thought not.

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Guy from Item Club on BBC News, said the housing market is the key to recovery, suggests stamp duty incentives.

he's right.

Lower prices would allow current lending levels to fascilitate the market.

People would have more money left in their pockets to buy other things too.

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this is the possible nightmare scenario IMO - tptb won't accept that proper growth is not possible without restructuring the economy (which takes years and years and still might not produce results because of globalisation) but plough ahead with yet more stimulus/monetary easing just hoping that things will improve while taking massive risks with debt and inflation.

it won't take much more stupidity before we, like Greece and others, are in a compound debt spiral with no way out other than default.

George Osborne, January 2009: “Printing money is the last resort of desperate governments when all other policies have failed. It can’t be ruled out as a last resort in the fight against deflation, but in the end printing money risks losing control of inflation and all the economic problems that high inflation brings.”
George Osborne, October 2011: “I think it is the right way forward for this country that the Bank of England undertakes quantitative easing.”

are we fighting deflation?!!!

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...Ernst and Young also says the Bank of England's new quantitative easing (QE) bout is unlikely to prompt recovery...

...quick - better Double / triple / quadruple it to make it work.

Edited to add: If you're thinking about buying a house now to "protect yourself", it's possibly worth reading the link in my sig - a post from 'ruffles the Guinea pig'. Never it seems has it been quite so apt.

Edited by Lepista

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<br />he's right.<br /><br />Lower prices would allow current lending levels to fascilitate the market.<br /><br />People would have more money left in their pockets to buy other things too.<br />
<br /><br /><br />

Except he also advocated more lax mortgage lending again by the banks, now they got their QE2 (I presume). At not one point did he suggest that prices need to come down, no, just throw more debt at it. <_<

I saw the same BBC piece this morning as Bruce Banner.

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<br /><br /><br />

Except he also advocated more lax mortgage lending again by the banks, now they got their QE2 (I presume). At not one point did he suggest that prices need to come down, no, just throw more debt at it. <_<

I saw the same BBC piece this morning as Bruce Banner.

I see...he is right then, just in the wrong way.

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Guy from Item Club on BBC News, said the housing market is the key to recovery, suggests stamp duty incentives.

and what good are they to the young couple who are trying to buy their own(first) home?

the way to stimulate the economy is to MASSIVELY increase tax thresholds,and cut spurious non-jobs,regulation for the sake of regulation and benefits for the sake of benefits.

Also to wage far more punitive rates on those who have been hoovering up basic assets in "trust funds",charitalbe foundations(which are anything but),and limited liability companies specialising in stealing up housing foreclosed on the quiet at firesale prices.

then we can get some bums on seats making stuff again....as long as we have some lawmakers willing to play ball(which they most certainly will once the riots intensify-and they are going to get much,much worse...problem is nobody believes the mad mullah smokescreen any more,the public gaze is now firmly fixed on the CEO's,corporate execs,lobby groups and politicians/civic government and judicial plants....they should be getting rather frightened)

this really is about to get very serious.

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  • 293 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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