how did it come to this!?

deleriumtremens

These days as we drudge into the pit of recessionary misery it seems that everybody is an ameteur economist!

So I ask you, in one sentence, how would you best explain to somebody why there is a national and/ or worldwide recession!?

My take on it is that simply too many people had it too good for too long.:pac:

Berty

Complacency

abi2007

too many houses built too quick and over valued

javaboy

deleriumtremens wrote: »

These days as we drudge into the pit of recessionary misery it seems that everybody is an ameteur economist!

So I ask you, in one sentence, how would you best explain to somebody why there is a national and/ or worldwide recession!?

My take on it is that simply too many people had it too good for too long.:pac:

The recession wasn't man made. It's a myth. This downturn is part of a natural cycle that's been occurring for millions of years on this planet even before man was around.

BroomBurner

Sub-prime mortgages.

amacachi

Cycles, the good times (and the bad times for that matter) never go on forever.

Although from what politicians in several countries were saying up til this year I wonder if they deluded themselves that it could happen.

Berty

BroomBurner wrote: »

Sub-prime mortgages.

True, god damned poor people thinking they can seriously afford a house.

4zn76tysfajdxp

Banks or something.

stovelid

deleriumtremens wrote: »

how would you best explain to somebody why there is a national and/ or worldwide recession!?

....Because everybody believes that there is a national and/ or worldwide recession.

4zn76tysfajdxp

Its name is Stephen.

abi2007

oh we're talkin world wide.. well we'll have to blame the americans of course!

themadchef

Economy..............Pig-out followed by crash diet,


Slim fast is now to be rebranded as Stephen, and instead of being a handy shake it will now take the form of a suppository :eek:.


Happy dieting folks.

weemcd

3 words.
man. bear. pig

ejmaztec

There were too many sh1ts hanging out in the place where the big sh1ts hang out, so sh1t happened.

Raze_them_all

people not having family farm land and saving about 100K off building a house ,thus bowwowing much more than needed:D

abitlonely

Blind eyes

Ross_Mahon

I blame everyone in general.

Terry

Raze_them_all wrote: »

people not having family farm land and saving about 100K off building a house ,thus bowwowing much more than needed:D

Don't forget those whose house was willed to them

iPlop

im fcukin' delighted.All the cnuts that bought their 500k gaff's with the 2 new cars in 2005/6 thinkin' their the fcukin JONES'S fcuk them.Its all the banks worthless money ,their bollixed now.Im probably 1 of only a few in posititive equity on my house:D:D:D:D:D:D:D Thinkin' their somethin' their NOT!!!!

Nolanger

http://www.youtube.com/watch?v=azxNL-T3IFQ

Prof.Badass

abi2007 wrote: »

too many houses built too quick and over valued

I dissagree. Too few houses built to match demand and hence escalating prices.

Those huge apartment blocks going up in east wall should have gone up in like 2001 or something.Loads of houses everywhere= low prices as people have the luxury of haggling down sellers.

Biggins

One word - "Humans".

Two words - "Humans" and "Greed"

Three words - "Humans" "Greed" and "Stupidity"

A sentence: "The nature of the beast"

Tigger

stephens mommy and daddy got amrried and then they went .......

javaboy

Tigger wrote: »

stephens mommy and daddy got amrried and then they went .......

Incorrect. Stephen's parents were never married.

Everyone knows Stephen is a bastard.

Crann na Beatha

This post has been deleted.

SamWiseWoahZay

Everybody borrowed too much. People borrowed too much from the banks. The Banks borrowed too much from other banks. Banks were borrowing money to invest in stuff (like Mortgages) and then selling it on to other banks. They then sold it on, borrowed, sell, borrow, sell, borrow..... Its great when house prices are going up!

Feckn Edjits didn't realise it wasn't sustainable.

Other factors like price of Oil and Rice also had a massive effect.

Although, there are so many other factors to consider too that it's almost impossible to pin it down to one thing.

Remember the Dot Com bubble bursting? And IT Stocks crashing? Its a market adjustment which is neccessary to bring prices of "stuff" back to a realistic level. It happens all of a sudden and could seem that one event caused it all... but as with all things there are many causes.

It's like saying "Why did world war II start?"

It's complicated!

Karl Hungus

deleriumtremens wrote: »

So I ask you, in one sentence, how would you best explain to somebody why there is a national and/ or worldwide recession!?

Immigrants. Coming over here, taking our jobs, sending all the money they make back to kurdcheckapolistan in the arse end of nowhere to fund terrorism. :pac:

There's only one thing for it, send them all to Azerbaijan.

Crann na Beatha

This post has been deleted.

SamWiseWoahZay

I blame Squirrels

Crann na Beatha

This post has been deleted.

SamWiseWoahZay

See! Feckrs!

hullaballoo

Stephen came about in Ireland because of intra-financial sector distrust, which came about because of sub-prime lending by banks outside of Ireland.

anonymous_joe

American banks gave loans to people they knew couldn't pay them back. These were undesirable and were repackaged and relabelled and sold onto financial organisations. This eventually led to people realising they were worth a lot less than they'd payed causing distrust and thus financial silliness ensued.

Highsider

One word....Greed

dan_d

Dammit Highsider, you got there before I did!!!:)
That simple.Greed. Drove everything that has happened that brought us to this situation.

biko

Because people didn't know what a tracker mortgage is.

Sposs

Nice Graphical explanation

http://blog.mint.com/blog/finance-core/a-visual-guide-to-the-financial-crisis/

dontcallmecrazy

Tbh i'm glad it's like this, a little reminder were all still alive - what i wonder is how it got like 'that' in the first place.

SV

has it come to this?

Original Pirate Material
Yer listening to the streets
Lock down your aerial
Original Pirate Material
Yer listening to the streets
Lock down your aerial
Make yerself at home
We got diesel or some of that homegrown ...


etc.

syklops

It all started with people not knowing what a tracker mortgage is. After that it nosedived.

SimpleSam06

Heres the long and the short of it.

Banks were allowed to package up and sell loans to other banks and groups. One bank sold a €100 loan to the next bank for €95, who sold it to the next bank for €90, who sold it to the next bank for €85. So now your €100 "asset" as the banks call it, has transformed into €370. Do that a few hundred times and you have where we were in 2006.

Then the original loans started to default, they weren't paid (sub primes), so the packaged loans all the way up the chain were worthless. The problem is they had wrapped them up in such complicated packages that nobody had clue one which were good and which were bad.

So a lot of the money the banks supposedly hold is now suspect - it may be worth nothing. The banks were terrified at this turn of events, and stopped lending to one another. Banks don't magick money out of thin air - they get it from other banks. This is where the credit crunch came from.

The end-of-the-day effect of this is that a lot of businesses that depend on credit to run through the lean times, get wiped out. New eneterprises have little to no chance at all.

Hence unemployment and people holding on to their pennies in case they get laid off next, leading to less profits for businesses, leading to more closures and redundancies, leading to a deepening recession, and so on and so forth.

This is going to get extremely nasty before its done. The sad part about all this is that you can't really blame the banks as such, they were just acting within the remit they were given by regulatory authorities.

Biggins

After Christmas (whatever spending there will be around now and then!) things are seriously going to get bad.
Even when the Celtic Tiger was roaring, shop-wise, it always went fairly quiet till St Patrick's day, which by then a number of folk had managed to clear their Xmas debts.

Next year, from January onward, the quiet period of the retail trade is going to be far, far worse. The shops know it, a lot of the public know it and those sitting around the long old table on the first floor of the Fianna Fail HQ table know this too only too well.

How did we come to this? Well for a start, it didn't help that we allowed those that were supposed to be doing the job they were originally mandated to, to have free rein completely without accountability on a cost versus value, relationship alone.
It appears that if you elect a T.D. now, you might as well be writing a blank cheque for him/her to to whatever the heck they want.
Are we also to blame for this? Yes, in that between struggling to pay our mortgages, feed the tax people, keep petrol in our cars, keep the heating on, feed our kids, etc... we found little time to do our bit and protest.
- and no wonder, the cowboys in the Dail have kept us busy just doing that - struggling to survive - while they laugh it up and look forward to their next junket!

Now its all come back to haunt them - serve them right I say!

Roll on the next election.

Insect Overlord

Because durrr turk urrr juurrrrbssss!

Mcfast

stephen is emmigrating

nobodythere

All in favour of naming the recession Stephen say I?

I