Double Dip Recession?

[rory_20_uk]

The real reason why markets are jittery is the basics are lacking everywhere.

In a nutshell. The UK is a service based, consumer led economy. Apparently there is nothing wrong with this. as it is basically saying "we make nothing and exist by spending money" I am rather surprised with how sanguine the powers that be are about this.

Although markets are supposed to be about the allocation of wealth effectively, it increasingly is a massive game of chicken - try and do what everyone else is going to do slightly before they do, whatever that is. In the dotcom bubble one trader stated that for one company's share price to be valid, their market capitalisation would have had to be basically 100% of the world in a couple of years, as it made nothing and was loosing money hand over fist. An unpopular view that cost him his job.

The market seems set up for short term panics - no view to 1, 5 or 10 years. This would be fine if Markets had not been finding the West's baby boomer generation from a comfortable cradle to a comfortable grave on IOUs.

[Strike For The South]

So you're telling me spending trillions of dollars when you're in the red is a bad thing?

Predatory lending practices are bad thing?

Brinkmanship is a bad thing?

Do you have a study?

[Kagemusha]

So you're telling me spending trillions of dollars when you're in the red is a bad thing?

Predatory lending practices are bad thing?

Brinkmanship is a bad thing?



Do you have a study?

Spending when recession is looming over is a good thing, but not spending on fiscal business, but spending on somethinhg that creates consumption and jobs.

[HoreTore]

So you're telling me spending trillions of dollars when you're in the red is a bad thing?

Predatory lending practices are bad thing?

Brinkmanship is a bad thing?

Do you have a study?

A state should never, EVER have to take up loans.

Unfortunately, they have to, since people riot when taxes go up. Which is an epic fail at long term thinking, since the interest on those loans will hurt more than the added tax burden would.

It's really fun to watch your tax dollars go towarda paying interest to banks. What's the percentage the US spends on interest again? 13%? With a little more forward thinking, the US populace could've paid 13% less in taxes. Damn those socialists!!

[Fisherking]

Shall we talk about the ironies of giving away all that money to the banks that were too big to fail and now we owe interest to those banks on the free money we all gave to them?

[HoreTore]

They should of course have been nationalized.

Too bad for Joe America that nationalizing stuff is "socialist".

[Fisherking]

They should of course have been nationalized.

Too bad for Joe America that nationalizing stuff is "socialist".

Well, it wasn’t just the US now, was it?

I seem to remember most European Nations also giving away free money to the banks.

Of course in your model we might have been able to take the managers and stand them against a wall and shoot them. That may have made everyone at least feel better but they would still be in debt.

[HoreTore]

Well, it wasn’t just the US now, was it?

I seem to remember most European Nations also giving away free money to the banks.

Of course in your model we might have been able to take the managers and stand them against a wall and shoot them. That may have made everyone at least feel better but they would still be in debt.

The main bank(DNB NOR) is already owned by the state in socialist Norway.

And my comment goes for other european states too, of course.

It should've been seen as a simple investment. Instead of giving away money, they should've bought up shares in the banks. Investors do it all the time for troubled businesses, I don't see why a state shouldn't be able to do the same. It's investing, not 'socialism'.

[Papewaio]

Well, it wasn’t just the US now, was it?

I seem to remember most European Nations also giving away free money to the banks.

Isn't the UK government now the biggest shareholder in some of their banks? ie HBOS?