Saturday, January 19, 2008

Well, we won’t have a HPC without it!

The week the economy turned nasty

It can only mean one thing......Recession! ''Retail sales plummet; gas and electricity prices soar, further eating into already squeezed disposable incomes; Citigroup and Merrill Lynch, two of the great symbols of American capitalism, forced to hand round the begging bowl among Asian and Middle Eastern sovereign wealth funds after massive write-downs on US sub-prime mortgage lending.''

Posted by hpwatcher @ 05:52 AM (1547 views)
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20 thoughts on “Well, we won’t have a HPC without it!

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  • little professor says:

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  • Came across an interesting article on You Tube. The Americans are proposing to create a new currency called ‘The Amero’ Have you heard of this or have I been asleep for a couple of years?

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  • The headline/strapline you put over this piece Well we can’t have a HPC without it (meaning recession) is pretty chilling. You mean having a recession is worth it if you can pick up a cheap house? You lose your job or in real terms your wages go down along with thousands of other people’s but hey not to worry that semi I’ve had my eye on is well affordable now! Bringing house prices down by lowering the entire economy around them is stupid. The trick would be to target this class of asset by a tax for instance and to bring it back into balance with the rest of the productive economy. I did not think this organisation was so clumsy as to seek to flatten the house-price bubble by stamping on the whole economic system ! But this organisation does not actually want to do anything very much, does it? Just wait and pick up the pieces. Everything will be alright in the end. The workings of the entire indifferent economic system ultimately will take care of your interests .So you think.

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  • Just goes to show that you can’t build stable economies on consumer debt.
    Also Gordon Brown’s obsession with inflation has meant that we have imported more and more cheap goods to the point where we no longer manufacturer anything of note or significance. If a country just keeps on importing higher volumes of goods to hold back inflation then eventually employment in that country will be impacted because we have simply farmed out a large sector of the economy.

    I’m quite happy to stick to my belief that the years of Brown’s stewerdship of the economy will be proven to be catastrophic. It’s easy to say, “oh denzil, you are a tory”. In fact I’m not, I have no axe to grind with the Labour party only Brown.

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  • Can’t actually have seen the Conservatives doing a lot different. This things much bigger than party politics. Those that have the gold make the rules. America isn’t too worried about the dollar. She’s more interested in oil fields and military power. China can make all the plastic shite it likes. It will over heat, and by which time it will depend on how well their pieces are developed in the end game strategy. Money as we know it will mean very little. Raw materials,energy and the ability to defend them will determine which particular type of human survives in any significant numbers.

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  • handle_it – have you got a specific timescale to this catastrophic turn of events or is it a case of wait and see. I would love to get the inside track on this castrophe.

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  • Sold My Soul To The Never Never Never says:

    “Many will lose their jobs with little hope of finding a new one on comparable pay in the immediate future”. Tell me about it. My husband lost his job almost a year ago – only 10 years ago he was in great demand. The work moved to China – he had to go out their several times on business and eventually he was literally dumped – no word of warning – went on the day he was told and given a paltry redundancy package. He is in his late forties and a graduate and can’t find any work in his field and as for securing anything permanent – well it’s not happened yet. At the moment he is working on less than half of his pay. Many would suggest moving but have you seen the price of houses lately? The housing market seems to have come to a standstill in my area with many on the market for over a year. If our situation is reflected around the country then this will be catastrophic. We can only afford to spend on the essentials so the “micro-economy” will disappear.

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  • This comment might be a bit left of field but I’ve heard America plans to create a new currency called the Amero. Will that make the recession go away?

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  • bystander. I’m simply suggesting that events are far from out of control. Any prediction is of course a prediction. You may well have your own vision of the future which you are of course at liberty to share with us ? I’m basing mine on form. America seems intent on securing oil reserves. Iran seems to next on the list ? Your thoughts on that perhaps ? My opinion, is my opinion and at least for now, I’m free to express it. Your sarcasm is not becoming.

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  • Nice to see the media steering away from the fear factor….i’m surprised that there isn’t fake blood dripping down the front page and a comedy-style horror scream when you open it. I’m guessing that the big boys now have their positions covered and these sort of stories will become commonplace, followed of course by the soothing balm of celebrity gossip. Will we see questioning of how this could happen AGAIN and calls for reform to our debt-based monetary system and capitalist expansionism? I suspect a few sacrificial lambs are being fattened up – US mortgage companies, a socialist government (conveniently ignoring the fact that this government is economically further right than Thatcher and the same thing is happening in the US , Australia and Ireland who, for the last 10 years, have has the most economically right-wing governments in their respective histories), HIPs, estate agents, BTLers etc. etc., anyone but the ‘i’m alright jack’ system that actively encourages greed and individualism.
    In today’s world, respect and help for fellow human beings is seen as weakness, pinko liberalism, naivety or simply ‘bad business’. Everyone is your enemy – you must shaft them before they shaft you, it’s a dog eat dog world, life is hard etc. etc.
    Isn’t it time we woke up?

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  • “… a new currency called the Amero”

    You cannot be serious. Did you get that from a credible source, or The Onion?

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  • Handle_it – in all honesty I was not being sarcastic. I have been watching this site regularly over the past year or so and I have seen others predicting catastrophes. I am trying to prepare myself for an unknown future and am actually asking for advise. I am sorry if this came across as sarcastic. As far as America’s intentions with Iran, I am not Bush, but as he is a purely one dimensional character with one objective, I agree with you that unless something is done, Iran may well be the next victim of an agressive foreign policy masquerading as a war on terrorism. One man’s terrorist is another man’s freedom fighter.

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  • Cool a free DVD! 😀

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  • Paul.
    Try looking up “amero” in Wiki. I gather its a possible equivalent of the “Euro” in Canada, USA & Mexico.

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  • @DBc read – what organisation are you on about? You forget the house price bubble is a symptom of an anglo saxon based cycle based on the expansion of credit. When the borrowers are no longer willing to lend then they will restrict lending. THE historical evidence is an adjustment / correction / crash ensues to whatever asset has ballooned. At the same time the restriction ALSO leads to a recession or depression. There is no causal link – both are symptoms of the credit expansion going too far and then being restricted. As for the economy – yes I for one am worried that the fall will be more painful that anyone cares to think, and to an extent you are right it may very well be that a deflationary credit contraction will cause jobs to be lost BUT at the same time deflation increases the value of (some) currencies in your pocket, so you get a REAL wage increase. This is a very complex subject (because at the moment there is inflation) , but one area where i would completely disagree is by the use of fiscal instruments to “penalise” those that have participated in the boom. For a start that would just make things worse.

    No the time to act was to restrict the credit boom WHILE it was creating unaffordable housing. “this organisation” whatever that means just comments on the issues related to house price affordability, people merely want house prices to reduce to make them affordable, but there are implications that are probably unavoidable whether people can take advantage or not.

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  • Amero is a real concept being touted at the moment between Canada, Mexico and United States. They are thinking of forming a union much like EU and using the Amero as currency much like the Euro. Many years away from reality but thats what will happen. We will then see an Asian and African union and then eventually one Global union. 😉

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  • Dbc Reed said

    A little explanation really is required without severe doom and gllom, what is a recession?

    Its the economy pulling in the strings.

    Might sound grim but to be honest the economy has grown 200% in the last 10 years and reality has to face reality some when.

    HP Watcher is just expressing the truth – It has to happen some when – now or soon.

    I have been made redundant twice in my career – i really wish it on nobody and thats the truth – however a lot of the 20+ year old guys i work with have no idea what i am talking about when i talk of being out of work – i think reality has to catch up and its a great shame the economy hadnt been built on jsut borrowed money.

    All Debt is borrowed money and hasto be repaid – the fact that is forgotten you can blame GB for – Sorry but 80% of the population has been conned and it will be painful

    All Debt is borrowed and has to be rea

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  • Dbc Reed, many of the users of this site have been here for ages (years in some cases). There have been thousands of discussions about the whys-and-wherefores of the unfolding housing/economic situation. I don’t think anyone would actually wish for recession as such but being realistic many realise that recession is utterly inevitable. Liebour have fattened up the UK economy for slaughter and the majority of people in this country have been too busy with their plasma screens and OK Magazines to notice the tidal wave of economic woe bearing down on us.

    Please do not blame the members here for the situation as it’s not their fault. Infact if enough people had found this site during the ‘good times’ we possibly wouldn’t be peering into the abyss right now!!!!

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