Thursday, August 2, 2007

Oh dear – the Yanks are even hailing a severe recession!!

The crash that could come

When historians sort out what could well be the recession of 2007-08, they will wonder why regulators did not act before the speculative binge...

Posted by nearly30 @ 09:32 PM (356 views)
Please complete the required fields.



7 thoughts on “Oh dear – the Yanks are even hailing a severe recession!!

  • If this is a ‘local’ paper for local people – then this is very telling of the sentiment over in the US.

    Best bit:
    When historians sort out what could well be the recession of 2007-08, they will wonder why regulators did not act before the speculative binge in hedge funds, private equity, derivatives, and subprime mortgages pushed the larger economy into a general downward spiral. As always, the details will be complex, but the basic reason is pretty simple — too many well-connected insiders were making too much easy money.

    Reply
    Please complete the required fields.



  • japanese uncle says:

    why regulators did not act before the speculative binge in hedge funds, private equity, derivatives, and subprime mortgages pushed the larger economy into a general downward spiral?

    Laughable. Regulator’s job is to destabilize rather than stabilize the economy, to serve the agenda of their master, period.

    Reply
    Please complete the required fields.



  • dohousescrashinthewoods says:

    Vicious, JU, but you may well be right. I have worked close enough to governments to know that imperatives on the ground make little common sense in the context of the vague and lofty mision statements. Then again, I don’t really have information to go on, just hints, allegations and observations of real people making choices they wouldn’t publicly admit to.

    If leaders were that stupid, we would be living in the stone age, so it must be “working” by some definition, even if it isn’t what we might call right. I guess the question is, is it sustainable? Has Gordon really pillaged the golden goose or is it I who am whipped up by the media to think it? Or is he hanging on by a thread, having burned the house to keep warm a little longer?

    If half the opinions voiced here have validity, we may be about to see real regime change – “Rome is burning and there is nowhere left to run”. If that turns out to be wrong, either there was still a trick or two that could be pulled out of the hat or we are just plain wrong and all the misdirection and false fronts do create a working world.

    I guess, if you believe human nature – aka us – wants to be good but when it comes down to it is in fact rancid, then it should come as no surprise that nations talk about high ideals but that the reality behind the front is ugly and inconsistent.

    Reply
    Please complete the required fields.



  • japanese uncle says:

    As I mentioned time and again, unless and until an effective disciplinary/penalty system is introduced into the central banks and regulators, ensuring that those individuals in charge suffer severely in the event of failed performance, this sort of commedy will go on for good.

    Reply
    Please complete the required fields.



  • One of the more insightful pieces to come out of the US.

    I’m not sure we are looking at 1929 re-visited, but a banking crash looks very possible – if one major bank collapses (and there are rumours that Bank of America is in trouble) we could see a domino effect..

    Reply
    Please complete the required fields.



  • The financial system is so much more complex these days that it could be another Lloyds of London reinsurance scandal situation again. That hit people hard in the 90’s

    Reply
    Please complete the required fields.



  • tyrellcorporation says:

    ‘and there are rumours that Bank of America is in trouble’

    Interesting UT; plenty of other stressed lenders going to the wall so a big bank is not out of the realms of possibility.

    Reply
    Please complete the required fields.



Add a comment

  • Your email address is required so we can verify that the comment is genuine. It will not be posted anywhere on the site, will be stored confidentially by us and never given out to any third party.
  • Please note that any viewpoints published here as comments are user´s views and not the views of HousePriceCrash.co.uk.
  • Please adhere to the Guidelines

Your email address will not be published. Required fields are marked *

You may use these HTML tags and attributes:

<a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <s> <strike> <strong>