Global recession - the cause?

Discussion in 'Current Affairs, News and Analysis' started by Herrumph, Jan 22, 2008.

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  1. The world's stock markets have gone into free-fall. Starting in the far east, it is now happening in India. It is predicted to continue across the world for the second day running.

    Just ahead of the crash, our glorious leader has been visiting and signing agreements. Could there be a link. Are they looking into his eye, seeing the jaw wobble and realising that the great UK dream is about as credible as living off your VISA card?

    It can't just be a coincidence
  2. His visit to India was a disgrace. Why are we sending aid to a country with a space programme and nuclear weapons? Surely they're big enough to sort out their own spending priorities? And supporting their bid to get on the Security Council will raise the obvious question of why a small country like UK is on there, when countries with bigger populations and bigger economies are not.

    This inability to see further than the next soundbite is gettting a bit stale.
  3. Alsacien

    Alsacien LE Moderator

    You make a good point....
  4. Ask China - they going to get £105MILLION off us in aid.

    China FFS!
  5. Why are China getting aid? Their economic growth was 11% last year, and is tipped to get to 8 or 9 this year, despite the potential slump ...
  7. Biped

    Biped LE Book Reviewer

    There's a number of things happening.

    One is the US sub-prime mortgage screw-up, which is affecting the US market quite badly and helping create a recession in the US.

    Another is the balance of trade between the US and China, which is very much in China's favour and has been for some time.

    The volatility of the US market is affecting the stock markets in the US, which in turn is affecting those around the world.

    Seperately to this, and what the British Broadcasting Communists are carefully avoiding talking a great deal about is the situation in the UK. This being that the UK economy has been run so badly for the last ten years, that the long predicted chickens are actually arriving in the roost. The easy credit, the low interest rates, the gobment borrowing, the fuel prices, the gas prices, the electricity prices and the ever increasing taxes has meant that just about everyone has borrowed way more than they can afford, the price of that borrowing has gone up, the cost of living has gone through the roof and EVERYONE apart from the rather wealthy are starting to tighten their belts.

    This year looks be one of record repossessions, record bankruptcies, large numbers being made jobless and lots and lots of companies hitting the skids. Whilst this is going on, the gobment and the BBC liars will be blaming it on a 'global recession', when the truth is far from it. The gobment of THIS country is the author of the UK's upcoming misfortune.
  8. Best bit about it all of course is that there isn't actually a recession yet.

    The panic is all because the rate of growth is slowing down.

    Not stopped or below zero but just that the amount of growth in the US is guesstimated to be lower than last year.

    Does that make any sense to anyone? Growth hasn't stopped or stagnated but it is going up slower than hoped so Xtrillions are wiped off share values, x millions will lose their jobs/homes.
    Misery doom and gloom alround and all because ?
  9. I blame Thatcher, but as a rule I ALWAYS blame Thatcher (in this case I may be wrong).

    Curse that Witch and her assault on Englishness!
  10. The balance between greed and fear has tipped in favour of fear.
  11. It does, to the untrained brain (mine!) appear that the situation is hyped up by the media, which then leads those with stocks/shares/interests to panic sell.

    So problems ensue because of knee-jerk reactions.

    Perhaps my knees would be jerking a bit though, if i stood to lose millions...

  12. I am an economics novice but the whole situation seems to be caused by greed. From house prices to the stock market everything has been built up and built up by people chasing the "fast buck".

    Interesting times. . .
  13. This sounds more like media hype. But, just to be safe let us keep our money & offer Northern Rock to China & India instead. Oh! They can also have Gordon Brown & Alistair Darling
  14. time to fess up, it's all my fault, sorry
  15. Lady_h , I don't have shares or stocks but if I did by God I would sell now and buy gold.

    If the big boys on Wall street do the same as the rest of the world ( which they have too ) then its going to hit big time .

    7 to 10% of the value of UK Footsy has just gone poof.

    The US sub prime disaster has not only affected the USA. UK, German, Italian and now Chinease banks all had loans to each other . Something like if they have 10 $ they can lend 1.

    With a 10% loss they only have 9$ so can only lend 90c.