- Are we heading for a second recession? and ….
Its going to get a lot lot worse before it gets any better. Whoever gets in after the next election is going to have to take an axe to public services that will make Thatcher look like some kindly benevolent aunt. Anyone who doesn't think that's the case is living in la-la-land
If I was working in the public sector I'd be preparing for unemployment. As I work in the private sector I don't have to prepare as I'm already there. Hurray for capitlism!!!Posted 8 years agomissingfrontallobeMember
As a public sector employee I'm almost waiting for the inevitable "chat" to happen, despite the "reassurances" that healthcare won't be effected. Bollox, my employing Trust is going to be in massive debt shortly as the PFI funded new hospital will be opened – despite Labour many years ago pre a general election stating that PFI was a bad idea and that they'd be abolished – yeah, right!Posted 8 years agoTrailseekerMember
A lot of things seem better than they really are at the moment because all the things that are used to calculate figures have been held artificially low for sometime.Posted 8 years ago
When Interest rates rise, & the effect of low VAT, stamp duty, car scrapage schemes etc are factored in it looks very drastic indeed 😐loweySubscriber
As binners said, after the election we can look forward to massive cuts in public spending, inevitable increase in taxation, inflation on the up, house prices stagnant, banks refusing still to lend to business or indeed provide any sort of support and increasing unemployment. It really is a very very bleak picture.Posted 8 years ago
already starting to see more repossesions come on the market round our way (london)
once the interest rates rises in earnest then we will be seeing a lot more
should have an effect of lowering prices quite a bit
how much money could be saved if we pulled out of afgahnistan tomorrow?
would that be enough to avoid the worst public service cuts?
and europe could take a lot longer to come out of this than us, which sucks coz they are our biggest trading partner, so will keep us from comming out quicklyPosted 8 years agocorrodedMember
I don't see things getting better for Britain than where they are now for at least a decade. The cost of living will go up (with higher and more volatile energy prices as Asia booms) but wages won't. Spending will contract further. The picture for the whole of Europe looks very gloomy: currently in places like Italy and Germany, there are four people taxpayers for every state-supported citizen (pensioners etc). In a few years that will be three to one.Posted 8 years ago
i wouldnt worry too much about it all
a) there is nothing you can do
b) economists have an incredibly poor recent track record on predicting the financial future
c) there is always a lot of doom mongering spread around before a general election
d) the media loves a good scare story
e) you can always go and ride your bike, which makes everything seem a bit better ime
f) oh yeah and a house price crash would be great for me as i could get on the property ladder and the insane property prices in this country in general could be sorted outPosted 8 years ago
I'd love a good house price crash. They're too bloody expensive, and it doesn't do anyone but owners of multiple properties any good.
But a price crash hurts current owners, which isn't nice. (I'd like one too but I'd not like to see others in my family in massive negative equity even more).Posted 8 years agoShandySubscriber
Its going to get a lot worse before it gets better.
One thing though, banks will still lend to trading businesses. Now that they've been bailed out they are going back to "traditional banking" which means LIBOR plus 3% and a nice hefty arrangement fee. Good for them.Posted 8 years ago
how will this affect house prices
It might force them back to a realistic level.
it's been a real struggle to get back on the market.
Are you mental? By struggling to get "into the market" you help fuel said market and create the struggle for yourself. It's a recession. House prices are unsustainable. If you wait, they'll fall, you already know that.Posted 8 years ago
, the model of capitalism is working
Over priced housing that many first time buyers can't afford.
The goverment printing money it doesn't have.
Business collapsing and jobs being lost.
Tens of billions to bail out the banks.
How would you describe capitalism not working?Posted 8 years ago
You are Gordon Brown and I claim my £5ctznsmithSubscriber
the model of capitalism is working
It is…people's welfare sadly is not one of the parameters in the model.
(although some people do need to redress what they view as 'necessities', but hey their high expectations are due to/a requirement of Capitalism in the first place! :))Posted 8 years ago
A crash would see too many people bankrupt and the lenders with properties worth less than they lent to the buyers.
Property prices are set by the market, it's one of the few areas where that's the case. people are taking cuts in income and losing their jobs, whilst banks are tightening up on lending.Posted 8 years ago
Fewer people buying with less money to spend doesn't fuel a property boom does it?
Also, if there are (and no-one's going to argue that there aren't) going to be massive public sector cuts, do you think that might affect the property market? The NHS alone is the fourth largest employer in the world, the cuts to it alone will have a serious and sustained effect on the housing market, at the very least to the extent that NHS employees wil be less keen to risk taking on a mortgage that they'll be unable to pay if they lose their jobs then their homes. Multiply that over the whole public sector and the picture looks less rosy than you seem to think. then factor in the private sector job losses and you think the econly can really sustain boom house prices do you?
then let's add to that little mix the people who are not spending money now because the see the need to be saving, just in case. Those savings are money not circulating round the economy creating jobs as it goes. reduced economic activity = high house prices?ctznsmithSubscriber
Maybe we need to cull a few old people logan's run style.
Not only would it reduce the 'pensions burden' but people would inherit their assets so encouraging spending and the government gets more tax from it too, reducing the public borrowing?
On a serious note are there any stats for increasing death rates during economic down turns?Posted 8 years ago
backhander – Member
Yeah a property crash and the associated interest rise is just what the country needs
Do you want people to lose their homes?
If you can't afford a house, look for a smaller place or get a better paying job.
or how about you shouldnt have borrowed at such a ridculously large factor of your income,ie a house you couldnt really afford, in the 1st placePosted 8 years ago
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