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Recession Dead Ahead

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And while everyone likes to think the Federal Reserve is omniscient and omnipotent, the “soft landing” objective is very seldom achieved. In the current climate, with the housing bubble unwinding now underway, we believe the landing gear has already fallen off.

This article is dead on. Last Q of 2006 to get very ugly and 2007 to be a full blown recession. Fear is everywhere.

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How far is our economy behind the US if it does happen ?

Our economy runs in a parallel universe. Gordon the Great will ensure the miracle continues!

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Indeed. Gordon will stand on the white cliffs of Dover in his Miracleman costume with the flowing cape and the underpants outside his trousers, fighting off the evil forces of inflation before they can destroy the British economy.

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Will this be the first major recession with everyone stuffed full of debt? - and if so how will this affect it?

Not sure it will be the first, but if we get an inflationary recession after years of artificially low interest rates it will certainly be bad.

In the worst case it could be the 70s again but without any real chance of wage inflation thanks to globalisation... leading to massive bankruptcies and serious destruction of the British standard of living.

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And while everyone likes to think the Federal Reserve is omniscient and omnipotent, the “soft landing” objective is very seldom achieved. In the current climate, with the housing bubble unwinding now underway, we believe the landing gear has already fallen off.

This article is dead on. Last Q of 2006 to get very ugly and 2007 to be a full blown recession. Fear is everywhere.

This thread should be titled "Depression straight ahead".

I'm with this guy Long Wave Cycle analyst

Didn't it take 2 months or so in 1929 for the selling on Wall Street to reach "Black Tuesday". So far in 2006 they have been selling off for just a month ...

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quote re: U.S.

'The yield curve has changed dramatically in the past 24 months, and is as “flat” as we can ever remember seeing it. The danger is the 88% historical probability of a recession that this represents. And if pressures preclude the Fed from easing later this year, one might say the odds of recession are closer to 100%.'

It's a miracle alright. A needed miracle for the ftb.

And for the site, I wonder how many hits we'll be seeing at the end of the year.

A may raise a beer to this post at the weekend whilst watching our boys do their best.

And what time period do we have to wait for this to reflect in Blighty.

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And what time period do we have to wait for this to reflect in Blighty.

About 6 - 12 months, This country, like the rest of the world, will suffer from the restricted spending in the US - US consumer = export market. If you look at our current growth area (unless you believe those idiots with a vested interest in the housing market) exports is the main peice of good news out there at the moment.

Ah ha, but we have export markets in other countries dont we?

Yes great, but then look at the products our products are going into, and see where the FINAL product ends up; in the households of the US consumer.

Like it or not the US consumes one quarter of the worlds resources - that is a massive export market. When it stops spending, it will stop placing orders the world over. Like with the housing market the components and finished goods market will be over-stocked, with too much spare capacity.

For those of you with a house do one thing - consolidate, and put aside for a recession, change spending habits. Be financially prepared for a redundancy (if you're one of the higher paid in your company you'll be first on the list.........been there).

Note: I own a house, and a business, and I'm not an Estate Agent trying to hype the market, but still expect some donkey to accuse me of something related.......yawn.

Edited by wsn03

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  • 301 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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