Global Recession

[bluemonday]

http://news.bbc.co.uk/2/hi/business/7673226.stm

and

http://news.bbc.co.uk/2/hi/in_depth/busine...nch/default.stm

 

Done deal?

 

Debate.

[Amadeus]

Most of G7 in recession, more rate cuts ahead

 

LONDON (Reuters) - The world's richest nations are in or close to recession and further interest rate cuts are needed to stem off more rot from the worst financial crisis in nearly 80 years, Reuters polls of economists showed on Thursday.

 

Particularly worrying in a quarterly survey of about 250 analysts across the Group of Seven nations is the sharp deterioration in the outlook for the United States, which until very recently was seen only flirting with recession.

 

Now the consensus view is that the world's largest economy will shrink for three successive quarters, last seen in 1974-75. That, say economists, will require the Federal Reserve to cut rates even lower than their already rock-bottom 1.50 percent.

 

Fishing & farming it is then...

[manshimajin]

At times like these the Bear Market is replaced by the Lemming Market. When peoples' confidence is shot they watch the previous stockmarket in the queue and respond accordingly.

 

I doubt that it will stabilise until people see evidence of banks lending at reasonable rates to business - funnily enough (irony) the state of manufacturing business seems to be a core element for recession and recovery...If BoE cuts rates by 1% it will only help if UK Banks apply margins that allow this reduction to be passed on in full. Given that banks have no faith in the banking system (and who better than them to judge that) how long will this take?

[Sebrof]

At times like these the Bear Market is replaced by the Lemming Market. When peoples' confidence is shot they watch the previous stockmarket in the queue and respond accordingly.

 

I doubt that it will stabilise until people see evidence of banks lending at reasonable rates to business - funnily enough (irony) the state of manufacturing business seems to be a core element for recession and recovery...If BoE cuts rates by 1% it will only help if UK Banks apply margins that allow this reduction to be passed on in full. Given that banks have no faith in the banking system (and who better than them to judge that) how long will this take?

 

Since most of the UK's high street banks are now part-owned by HMG (prop: G Brown), one imagines that said G Brown only has to say the word and they will act accordingly. Problem is, G Brown was the architect of the disaster, and has not the faintest clue what he is doing. The plan for the bank rescue is attributed to two chaps from the Standard Bank. Being bankers, as opposed to grocers and wide-boys, their bank wasn't exposed, so they had time to think up a grand plan, for which the said GB is claiming credit.

 

S

[hboy]

Yes

[La_Dolce_Vita]

Since most of the UK's high street banks are now part-owned by HMG (prop: G Brown), one imagines that said G Brown only has to say the word and they will act accordingly. Problem is, G Brown was the architect of the disaster,

 

S

 

Are saying that Gordon Brown is the architect of the credit crunch?

[Sebrof]

Since most of the UK's high street banks are now part-owned by HMG (prop: G Brown), one imagines that said G Brown only has to say the word and they will act accordingly. Problem is, G Brown was the architect of the disaster,

 

S

 

Are saying that Gordon Brown is the architect of the credit crunch?

 

He and Alan Greenspan bear the largest responsibility. The credit crunch is an Anglo-American invention, and because of the numbers involved, the whole world is affected.

 

I said it earlier, but will repeat it. Brown not merely tolerated, but encouraged, the UK housing bubble. He also set up an absurd and unworkable banking supervision system which completely failed to check ANY of the excesses of the system (of which ramping up house prices by over-lending was only one aspect).

 

Think of it as a prison riot where the governor hands out guns to the rioters. That's how culpable Brown is.

 

We would not have seen our banks brought to their knees if Brown had done his job.

 

The fact that he raised taxes and squandered the money with very few tangible benefits is a side-show. We will be paying for Brown for thirty years.

 

S

[WilDDog]

Does this mean interest rates will come down or go up?

[bluemonday]

IMPO, the BOE will cut rates again next month.

Ultimately if the recession really bites, I'd guess they might end up at just a couple of percent.

[Tempus Fugit]

Does this mean interest rates will come down or go up?

 

 

yes

[Sebrof]

IMPO, the BOE will cut rates again next month.

Ultimately if the recession really bites, I'd guess they might end up at just a couple of percent.

 

Or less.

 

S

[bluemonday]

Yes probably.

[bluemonday]

UK already in recession