Another factor that makes the recession worse is the way the media sensationalis absolutely everything, people are swayed by what they read, see and hear in the media and when newspapers and news programs go on about how awful it WILL be and people think '$h!t I'd better stop spending as much now, make sure that I do have some money for when the times do become quite bad'. This then deepens and quickens any recession that happens...

 

I remember when Northern Rock collapsed last year, some expert (I forget who) was on 5Live (or something similar) and was asked the question 'Which bank will be next?'. He refused to reply, not because he didn't know, but because it didn't matter which bank he'd say, people would've heard an expert say their bank would be the next to collapse, withdraw their money and put it into a safer bank and as a result the bank would be at a higher risk of collapsing!

According to the BBC, the Eurozone has officially entered a recession.

 

The Eurozone being the countries within the EU who use the Euro.

 

 

 

France has bucked the trend, and their economy grew by 0.1% last quarter.

At the moment I would say if you bought a house in the last 12-24 months then you're house could be worth less than you paid for it. If you just came out of a fixed mortgage deal, then your payments will have increased substantially. Previously you could have taken a new fixed deal at a low rate, but not much chance of getting a new one at the moment, so you will be stuck with higher payments that you might not be able to pay. If you sell your house now, and you bought in the last couple of years you could lose a fair bit.

 

If you have investments in shares you will have seen a substantial decline in their value, this will recover but may take a year or two.

 

If you are unlucky to lose your job, then you might struggle to get one paying the same, you might have to take a low skill job or part time work.

 

If you are at the bottom, on benefits,council house- rent paid by social, and no cash, then once inflation drops you will probably not be any worse off. The people who will lose most are the ones who have most.

Another factor that makes the recession worse is the way the media sensationalis absolutely everything, people are swayed by what they read, see and hear in the media and when newspapers and news programs go on about how awful it WILL be and people think '$h!t I'd better stop spending as much now, make sure that I do have some money for when the times do become quite bad'. This then deepens and quickens any recession that happens...

 

Eh..? The facts dont bear that out mate... At all... Sainsbury just announced an increase in profits.... :lol: :P

 

Eh..? The facts dont bear that out mate... At all... Sainsbury just announced an increase in profits.... :lol: :P

But there could be many reasons for this, people who'd usually go out on a friday night may instead buy a bottle of wine and a Chinese from the supermarket, people who shopped at places like Waitrose or M&S have now gone 'downmarket', they also sell petrol, which in the last quarter was the highest price it's ever been, you don't seriously think that 100% of the price increase was to cover the extra costs?! Not everywhere suffers in a recession, some firms make huge profits because of what they do.

 

The fact that unemployment keeps rising and we're in negative economic growth would suggest that people are spending less!

Edited November 15, 200816 yr by RabbitFurCoat

The fact that unemployment keeps rising and we're in negative economic growth would suggest that people are spending less!

 

Yeah, and none of that is the fault of the Media mate... They only report what's there and what's going on, don't shoot the messenger for the bad news... You want to blame somebody for this whole mess...? Blame the banks and the Government, they fukked it all up, not the Media... Or perhaps you believe that the Media should've just reported what the Govt and the banks would prefer they reported....

 

 

I went out for dinner on Friday and Saturday night and the 2 restaurants I went to were absolutely PACKED as was my shopping centre yesterday, I think these interest rate cuts have pretty much killed the recession on the High St stone dead, Friday night was first time in over 5 years of using Indian that we had to actually wait for a table, credit crunch what credit crunch ?

I went out for dinner on Friday and Saturday night and the 2 restaurants I went to were absolutely PACKED as was my shopping centre yesterday, I think these interest rate cuts have pretty much killed the recession on the High St stone dead, Friday night was first time in over 5 years of using Indian that we had to actually wait for a table, credit crunch what credit crunch ?

 

I think, at the moment, people are spending like there's no tomorrow (obviously taking their cues from Darling and Broon's idea of "spending our way" out of the crisis..LOL).... Financial analysts are saying that in the Post-Christmas/New Year period, we are in for one hell of a financial hang-over.....

 

One should also be taking note of headlines such as "31,000 Banking Jobs Lost", in London ALONE.... :rolleyes: I reckon it's people just going out and spending their redundancies mate....

the annual rate of inflation has fallen so hopefully this is the begining of a recovery...

the annual rate of inflation has fallen so hopefully this is the begining of a recovery...

 

I suggest watching the Channel 4 current series "The Ascent of Money" which started last night, and also the excellent Bremner, Bird, Fortune political satire "Silly Money"... This doesn't necessarily mean anything mate, it's more about managing debt.... And Gordy Broon has presided over the absolutely WORST national debt that this country has ever seen, so, er what was all that he was saying about "prudence"....? -_-

 

the annual rate of inflation has fallen so hopefully this is the begining of a recovery...

 

No way is this the start of the recovery, that could be 2 years away. Even Broon thinks we are heading for deflation, in other words a downward spiral if prices start falling rapidly, people will delay buying, because they will just wait till price drops and drops, so Company's lose more sales, then they make more people redundant , because they can't afford the wages. Unemployment rises towards 3 million, less tax is paid as less people working, so taxes go up for everyone else, to pay for increased unemployment benefit. People have less to spend, so prices keep dropping, more Company's go bust...............and the vicious circle is complete. :(

No way is this the start of the recovery, that could be 2 years away. Even Broon thinks we are heading for deflation, in other words a downward spiral if prices start falling rapidly, people will delay buying, because they will just wait till price drops and drops, so Company's lose more sales, then they make more people redundant , because they can't afford the wages. Unemployment rises towards 3 million, less tax is paid as less people working, so taxes go up for everyone else, to pay for increased unemployment benefit. People have less to spend, so prices keep dropping, more Company's go bust...............and the vicious circle is complete. :(

 

economists on tv the other days thinks that although there will be a continual cycle of 'boom and bust' (they agree that it is an inevitable cycle) that we will learn how to manage recession and the effects wont be so bad.

 

yep its a balancing act between inflation and deflation, but at least the danger is recognised. this drop in interest rates which is highly likely to be followed by more WILL help us weather the storm and the gloomy predictions from some quarters are likely to be proven 'overreacting'. taxes are going to be cut as well, this will also assist a speedy recovery.

At the moment I would say if you bought a house in the last 12-24 months then you're house could be worth less than you paid for it.

Just like my mum did :rolleyes: Fixed rate mortgage too :(. Its a very good idea if you rent. If house prices fall faster per week than your rent per week, then you are effectively making money, and thats even before you add interest from the mortgage.

Just like my mum did :rolleyes: Fixed rate mortgage too :(. Its a very good idea if you rent. If house prices fall faster per week than your rent per week, then you are effectively making money, and thats even before you add interest from the mortgage.

 

but it only matters if you are moving, as house prices WILL go back up.

I managed to forget about this...

 

 

Yeah, and none of that is the fault of the Media mate... They only report what's there and what's going on, don't shoot the messenger for the bad news... You want to blame somebody for this whole mess...? Blame the banks and the Government, they fukked it all up, not the Media... Or perhaps you believe that the Media should've just reported what the Govt and the banks would prefer they reported....

 

Of course it's not the media's fault however they're certainly not completely innocent. I don't ever read either paper but I don't want to imagine the ludicrous amount of scare-mongering the likes of the Scum and hate Mail will have done over this recession. Of course it is the fault of Gov'ts, banks etc but the media don't exactly help it with the way they report things!

Edited November 24, 200816 yr by RabbitFurCoat

Labour have totally f***ed up, AGAIN

 

What the hell has come over them to put this country into such massive debt on the off chance it MIGHT boost the High Street :manson:

 

Brown and Darling are simply saying "we have lost the next election so we will leave a massive almightly mess for Cameron to clear up", disgraceful

 

Record levels of government debt, tax and VAT rises in 2010, tax rises for high earners :manson:

 

I hardly see the attitude of the public being "I might well lose my job but hey that plasma tv is 2.5% cheaper now, I can save £20 so I will get it :D :cheer: " it doesn't work that way Gordon :manson:

 

2.5% off VAT will do f*** all for the High St so all that will happen now is no real economic recovery and a massive government debt that has to be paid back by US when the economy might start improving a bit so nice way of extending the recession :manson:

 

The only winners yesterday are BA who will no doubt sell thousands more one way plane tickets as wealthy professionals emigrate due to tax rises

Edited November 25, 200816 yr by B.A Baracus

Labour have totally f***ed up, AGAIN

 

What the hell has come over them to put this country into such massive debt on the off chance it MIGHT boost the High Street :manson:

 

Brown and Darling are simply saying "we have lost the next election so we will leave a massive almightly mess for Cameron to clear up", disgraceful

 

Record levels of government debt, tax and VAT rises in 2010, tax rises for high earners :manson:

 

I hardly see the attitude of the public being "I might well lose my job but hey that plasma tv is 2.5% cheaper now, I can save £20 so I will get it :D :cheer: " it doesn't work that way Gordon :manson:

 

2.5% off VAT will do f*** all for the High St so all that will happen now is no real economic recovery and a massive government debt that has to be paid back by US when the economy might start improving a bit so nice way of extending the recession :manson:

 

The only winners yesterday are BA who will no doubt sell thousands more one way plane tickets as wealthy professionals emigrate due to tax rises

 

yeah, labour HAVE cocked up after ten years of stable growth with the lowest interest/mortgage rates , a feat the tories NEVER achieved! :lol:

 

its all very well the torys criticising the government for these measures, but what do they suggest? oh yeah... sitting it out like the last lot did... didnt they learn anything that time? lets face it, no matter what the government does to handle the crisis, they are damned...

 

tax rises in the future?... as i understand it its tax being returned to its current level, so 2 odd years of 2.5% less vat is better then 2 years of vat @ 17.5% :lol:

 

im no financial expert, but im happy enough to see the government try to manage the recession the best way they see fit, after all, what have they got to gain by being deliberately obtuse?

 

just suppose these measures work, and unemployment is kept down, the economy does ride the recession out better then other countries... would the tories give the government credit?...:lol: more chance of a white crimbo!

yeah, labour HAVE cocked up after ten years of stable growth with the lowest interest/mortgage rates , a feat the tories NEVER achieved! :lol:

 

its all very well the torys criticising the government for these measures, but what do they suggest? oh yeah... sitting it out like the last lot did... didnt they learn anything that time? lets face it, no matter what the government does to handle the crisis, they are damned...

 

tax rises in the future?... as i understand it its tax being returned to its current level, so 2 odd years of 2.5% less vat is better then 2 years of vat @ 17.5% :lol:

 

im no financial expert, but im happy enough to see the government try to manage the recession the best way they see fit, after all, what have they got to gain by being deliberately obtuse?

 

just suppose these measures work, and unemployment is kept down, the economy does ride the recession out better then other countries... would the tories give the government credit?...:lol: more chance of a white crimbo!

 

I would have cut 3-5p off the rate of direct income tax and cut corporation tax and cut the rate of stamp duty to get the housing market moving again

 

I agree something needed to be done to stimulate growth but I fail to see what difference if any a 2.5% cut in VAT will make to High St, if people are not spending even though big retailers have cut their prices recently by as much as 20% then they won't with 2.5% cut off, with stuff like food being VAT free the only real savings will be on stuff like cars and plasma tv's and people are not buying those atm so another 2.5% off the price of one isn't going to get people rushing to Currys or their local Ford dealer

 

If the government were going to borrow money then they should have borrowed it for something that would make a real impact, 2.5% off VAT will in my opinion make little or no impact

Edited November 25, 200816 yr by B.A Baracus

tax rises in the future?... as i understand it its tax being returned to its current level, so 2 odd years of 2.5% less vat is better then 2 years of vat @ 17.5% :lol:

 

National Insurance is going up 0.5% from 2010 for everyone whereas it has not been cut today so that is in effect a tax rise, several other stealth taxes have gone up such as taxes on flights, petrol and s on

 

National Insurance is going up 0.5% from 2010 for everyone whereas it has not been cut today so that is in effect a tax rise, several other stealth taxes have gone up such as taxes on flights, petrol and s on

 

i agree with you on that...

 

but

 

the tories invented stealth taxes m8... they are no better..