lazen
Activist
Posts:326
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| 19/03/2008 3:49 AM |
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Chsh injections,Interest rate cuts dont work.
USA is nearly on the floor at 2% then where do they head?
As an intelligent graduate I am absolutely astonished that The Economists think a cut in interest rates will even begin to scratch the surface of the massive economic collapse about to occur.
I mean its like the knat and the elephant.
Printing more and more worthless loans paper etc just aggravates the problem.
Call in all loans and British people would be going round in their underpants
like India in the UK living off one bowl of rice and even then they would still owe the banks and credit card companies stacks of money.
Thats how poor we are without being bouyed up by credit.
The assets of most households would be £00.00 or more likely - £00.00.
If you added up all the gear they had in their little semi detached houses threw in the car and the TV theyd ghet maybe £500 tops,whilst owing £1000s if not £10,s £1000s.
Its all about saving face
People cant admit they are absolutely penniless.
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chefdave
Activist
Posts:482
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| 19/03/2008 1:21 PM |
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Thats why a housing crash would be devestating on many important graphs -don't know which ones in particular- we would be billions of £ in debt with nothing to show for it.
The Fed is doing all it can to compensate for the banks' folly but if there is just a big black hole where once there was a great big subprime loan eventually someone is going to have to pay, whether it be the investors or, perhaps, the taxpayer. Socialism sounds good to big investors when it looks like they're about to lose a packet.
Are the British people going to able to adapt to the reduction in easy money? Well they've got no choice and its going to cause untold chaos. Hopefully. |
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Asteve
Activist
Posts:930
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| 19/03/2008 4:52 PM |
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In a decade the value of our housing stock has risen from ~ £1,400 billion to about £4,200 billion - or trebled.
If you think that the worth of the housing stock has trebled, then our investment has been successful. If you think that the housing stock was scantly better in 2007 than in 1997 - then we have nothing to show anyhow - with or without a house price crash.
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chefdave
Activist
Posts:482
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| 19/03/2008 5:03 PM |
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Asteve wrote:
"In a decade the value of our housing stock has risen from ~ £1,400 billion to about £4,200 billion - or trebled.
If you think that the worth of the housing stock has trebled, then our investment has been successful. If you think that the housing stock was scantly better in 2007 than in 1997 - then we have nothing to show anyhow - with or without a house price crash."
......apart from a corresponding massive pile of debt of course.
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Asteve
Activist
Posts:930
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| 19/03/2008 6:14 PM |
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"The debt is real."
We should get Tee-shirts printed.
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