Friday, February 8, 2008

Last Chance Saloon

Bond market fears as UK debt soars

"The UK household sector is borrowing at a cyclically unprecedented 4pc of GDP. Allowing economic growth to be based on unsustainable asset price bubbles was always going to be a recipe for disaster because the snapback can be vicious. This is a mess of the policy-makers' own making." Interesting article about National Debt - and a scary looking Balance of Payments chart that as good as mirrors the housing market boom and bust.

Posted by growler @ 07:44 AM (724 views)
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13 thoughts on “Last Chance Saloon

  • japanese uncle says:

    If a junkie reassures “Sure I am on drugs at the moment, but I will become a new man tomorrow. I promise, guv. So lend me a few quids. You’ll never be sorry for it”. Would you lend money to him?

    Doomed GBP, mounting deficits, the first bank run in 140 years with the next one possibly in the pipeline, on top of the imminent spectacular HPC. You name it.

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  • Debt, debt, debt, debt, debt, debt, debt, debt, debt, debt, debt, debt, debt, debt, debt, debt, debt, debt, debt, debt, debt, debt, debt, debt, debt, debt, debt, debt, debt, debt, debt, debt, debt, debt, debt, debt, debt, debt, debt, debt, debt, debt, debt, debt, debt, debt, debt, debt, debt, debt, debt, debt, debt, debt, debt, debt, debt, debt, debt, debt, debt, debt, debt, debt, debt, debt, debt, debt, debt, debt, debt, debt, debt, debt, debt, debt, debt, debt, debt, debt, debt, debt, debt, debt, debt, debt, debt, debt, debt, debt, debt, debt, debt, debt, debt, debt, debt, debt, debt, debt, debt, debt, debt, debt, debt, debt, debt, debt, debt, debt, debt, debt, debt, debt, debt, debt, debt, debt, debt, debt, debt, debt, debt, debt, debt, debt, debt, debt, debt, debt, debt, debt, debt, debt, debt, debt, debt, debt, debt, debt, debt, debt, debt, debt, debt, debt, debt, debt, debt, debt, debt, debt, debt, debt, debt, debt, debt, debt, debt, debt, debt, debt, debt, debt, debt, debt, debt, debt, debt, debt, debt, debt, debt, debt, debt, debt, debt, debt, debt, debt, debt, debt, debt, debt, debt, debt, debt, debt, debt, debt, debt, debt, debt, debt, debt and more lovely debt.

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  • japanese uncle says:

    The only thing that convinces you should be:

    The junkie in question goes through a tough regime of detox course in the form of IR increase, to show the world that he is determined to get rid of all debt once and for all, and restart from scratch.

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  • Mind you…

    “…”This is approaching Banana Republic status,” said Albert Edwards, global strategist for Société Générale….Years of macro-mismanagement, mirroring the errors we saw in Asia a decade ago, may have dragged the UK economy to the edge of a deep precipice….”

    Not like in the French banking system (or indeed Societe) then?

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  • japanese uncle says:

    One more:

    —————-
    Standard & Poor’s said Britain has experienced the worst fiscal slippage of any country in the OECD club of rich nations over the past five years, but the country’s coveted “AAA” rating is not yet in danger.
    ——————-

    Yes and we all know now S&P rated a garbage of a bond containing subprime risks AAA. Hahaha

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  • Looks like higher taxation ahead which the Labour party will blame on the newly elected Tory party.

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  • sold 2 rent 1 says:

    “The junkie in question goes through a tough regime of detox course in the form of IR increase, to show the world that he is determined to get rid of all debt once and for all, and restart from scratch.”

    Nice comparison. But this junkie can never shake his addiction because it is a flaw in his genetic make-up.
    Sure, rehab temporarily worked in the 1840s and 1930s depressions but sooner or later the addiction gene kicks in again and the “bender trips” only get bigger.

    What this junkie needs is for medical treatment to advance to the next level and tackle the faulty gene directly.

    So we have 2 options.
    1. Rehab to temporarily fix the problem now; only for it to occur again in another 60-70 years
    2. Throw all resources into fixing the problem once and for all now.

    The governments, banks, corporations, and media would like option 1.
    Maybe its the masses who should push for option 2. It is down to us all.

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  • Eeeeeh!

    Sold2Rent’s a commie…….. yuuuuuk!

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  • Something you are trying to tell us HPwathcher?

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  • sold 2 rent 1 says:

    Orwell,

    I aint no commie.

    I have just realised that the argument about rasing or cutting IRs is not getting to the heart of the problem.
    The debt-based banking system is the problem

    See video
    Corrupt Banking System – Cartels Robbing the Public
    http://uk.youtube.com/watch?v=cy-fD78zyvI

    The answer is not communism.

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  • “We are nearing the point where Asian and Middle East investors are going to charge a much higher premium for holding British sovereign debt,” he said. “Once a government loses credibility, these investment shifts can happen with alarming speed.”

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  • Remember this plot before we marvel at US problems

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  • Sold2Rent,

    I was joking….. Reagrds… :-))

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