The Great Depression Mk2?

The Pontiac

The Great Depression Mark II. Some of the great economists have been saying this for a while now while the rest of the world were dreaming that we were on the road to recovery. But now it's actually on the Yahoo homepage (so it must be true).

We're fúcked. No 'double dip', but one major economic catastrophe on the cards this time. Portugal and Spain are on the verge of doing a Greece on us. The US Fed are printing money like there's no tomorrow. The UK, the world's sixth richest economy, has a budget deficit of 12% of it’s GDP, the highest in Europe (Greece has a budget deficit of 'only' 9.3% of its GDP). Japan's credit rating is going to be downgraded soon. The Euro is on the verge of collapse. The markets are collapsing before our eyes. I can't see anyway way out.

The cover up was great while it lasted, but you can only cover up mounting debts for so long before the bubble bursts (again), and it's going to be a bigger bubble this time.

Great weather though.

It's ok.

We have the people in power to sort it out :pac:

starbelgrade

There may be trouble ahead, but while there's moonlight and music and love and romance, let's face the music and dance.

PirateShampoo

Ctrl+Alt+Delete End Program.

Problem Solved

Coriolanus

starbelgrade wrote: »

There may be trouble ahead, but while there's moonlight and music and love and romance, let's face the music and dance.

If by dancing you mean RATM, and by dance, you mean riot, count me in!

I honestly think this year will be worse than last year.

starbelgrade

Nevore wrote: »

If by dancing you mean RATM, and by dance, you mean riot, count me in!

I honestly think this year will be worse than last year.

Soon we'll be without the moon, humming a different tune and then there may be teardrops to shed.

Mister men

But but but the media say everything is going to be okay.:rolleyes:

The Pontiac

starbelgrade wrote: »

Soon we'll be without the moon, humming a different tune and then there may be teardrops to shed.

When I was a boy, the moon was a pearl the sun a yellow gold.

Mister men

Mister men wrote: »

But but but the media say everything is going to be okay.:rolleyes:

No, the media say we are fúcked - see OP !

galwayrush

My wine bottle says everything is fine. SalutE.........

starbelgrade

<Ollie> wrote: »

When I was a boy, the moon was a pearl the sun a yellow gold.

Ah, back in the good old world.

Indubitable

Make a never ending line of bubbles and we will be grand

The Pontiac

starbelgrade wrote: »

Ah, back in the good old world.

I was only listening to that cd a few hours ago.

Mint Sauce

ah brain cowen will know what to do



























































oh wait....

starbelgrade

<Ollie> wrote: »

I was only listening to that cd a few hours ago.

What CD?!?!? :eek:

Voltex

Im doing a Fetac course in this very area .After I hand in my project I'll sort the whole thing out!!

El Siglo

And are these the same economists that told us everything was good five years ago?
Shit happens, once Germany stays cool we're all sorted.

Killer Pigeon

Hyperinflation is down the road, you will start to see banknotes like this;

http://aes.iupui.edu/rwise/banknotes/euro/Euro-1MillionEuros-Fantasy_f.jpg

http://aes.iupui.edu/rwise/banknotes/euro/Euro-1MillionEuros-Fantasy_b.jpg

... and then people like this gaining power;

http://crabfootball.files.wordpress.com/2009/10/nick-griffin-wearing-a-poppy.jpg

http://scrapetv.com/News/News%20Pages/Everyone%20Else/images-4/gerry-adams-1.jpg

and then, the inevitable;

http://www.molineschools.org/mhs/activities/2nd_sem0708/Mendez/nuclear-explosion.jpg

Voltex

El Siglo wrote: »

And are these the same economists that told us everything was good five years ago?
Shit happens, once Germany stays cool we're all sorted.

Angela has started using a combover!!

PirateShampoo

PirateShampoo wrote: »

Ctrl+Alt+Delete End Program.

Problem Solved

That is likely to happen anyway, replace all the failed money with new money, just everyone will start with nothing except the bankers and those who have some gold under the mattress.

Just think next winter you may be heating up the house with wads of €50,000,000,000,000,000 notes.
A bit like this. :eek:

They'll even end up in the street like sweet wrappers.

lil'bug

meh i was skint during the celtic tiger and i'm skint through the reccession what else is new

lil'bug

lil'bug wrote: »

meh i was skint during the celtic tiger and i'm skint through the reccession what else is new

Everyone else will be skint with you!

The Pontiac

El Siglo wrote: »

And are these the same economists that told us everything was good five years ago?
Shit happens, once Germany stays cool we're all sorted.

No. Remember Dr. Doom.

In 2008, Fortune magazine wrote that: "In 2005 Roubini said home prices were riding a speculative wave that would soon sink the economy. Back then the professor was called a Cassandra. Now he's a sage". In September 2006, he warned to a skeptical IMF that: "The United States was likely to face a once-in-a-lifetime housing bust, an oil shock, sharply declining consumer confidence, and, ultimately, a deep recession". He also foresaw "homeowners defaulting on mortgages, trillions of dollars of mortgage-backed securities unraveling worldwide and the global financial system shuddering to a halt".The New York Times labeled him "Dr. Doom", whereas, in hindsight, IMF economist Prakash Loungani has called him "a prophet.

starbelgrade

Killer Pigeon wrote: »

Hyperinflation is down the road,

Hyperinflation sounds like a woman suffering from a serious case of bloatedness.

kuntboy

um, uh...knowledge economy...and uh, er....de intirnashnul facters....er....um

mikom

kuntboy wrote: »

um, uh...knowledge economy...and uh, er....de intirnashnul facters....er....um

er....um green shoots of recovery blah blah blah

starbelgrade

mikom wrote: »

er....um green shoots of recovery blah blah blah

Going forward ... etc

aidan24326

Killer Pigeon wrote: »

Hyperinflation is down the road, you will start to see banknotes like this;
[/URL]

It happened in Germany back in the 1920s. At one stage they were printing off deutschmarks at the rate of trillions per day to keep up with completely-out-of-control inflation. The money printing presses were on full throttle and people were needing millions just to buy even basic items.

JONJO THE MISER

lil'bug wrote: »

meh i was skint during the celtic tiger and i'm skint through the reccession what else is new

The same as myself, i was always a recession for me but now when everyone else is in recession im actuallly doing quiet well.

ElaElaElano

I blame the Benhaffaf family.

celtic Liger

looking forward to more self sustainabilty in the communities, to be honest. we'll see how convenient the supermarkets become for all you lazy *****

--LOS--

Nevore wrote: »

If by dancing you mean RATM, and by dance, you mean riot, count me in!

I honestly think this year will be worse than last year.

I agree, what with the upcoming gig and all.

ChairmanWow

Yeah, yeah. How is this likely to impact on my tracker mortgage?

--LOS--

ooooo joke opportunity

Nodin

<Ollie> wrote: »

The Great Depression Mark II. Some of the great economists have been saying this for a while now while the rest of the world were dreaming that we were on the road to recovery. But now it's actually on the Yahoo homepage (so it must be true).

We're fúcked. No 'double dip', but one major economic catastrophe on the cards this time.

Mohawked outlaw motorbike gangs for all!!!!!!!!

Mr Benevolent

Meh, too early on a Sunday morning for this recession crap.

Sea Sharp

Cool, does this mean we'll see some sort of Mad-Max scenario with skangers running around like zombies out of the movies breaking into our houses trying to steal food and nike air max.

"I'm sorry officer it was self defence"

"Ah, don't worry about it Ganjahan"

"ok, tnx bai"

:cool:

bnt

ChairmanWow wrote: »

Yeah, yeah. How is this likely to impact on my tracker mortgage?

Badly. Assuming the interest rate tracks inflation, guess what will happen if inflation hits 20%? Not a problem as long as your income also tracks inflation, but ... what do you think?

The real damage done by inflation is to savings and investments. Savings get eroded, people pull them out of the banks, no-one is willing or able to invest. If that sounds like the last couple of years, well, note that we haven't had high inflation. If that happens too, we'll be in a "stagflation" situation: high inflation and high unemployment is a bad mix.

However, this is not what that article posted by the OP is suggesting - in it one guy talks about deflation, which is also a bad thing, because it completely shuts down any investment in anything. We're not far from that already: the ECB and Bank Of England can't lower interest rates below zero, so that mechanism has hit the stops. No-one invests money if they know they're going to make a loss on it.

Coriolanus

bnt wrote: »

No-one invests money if they know they're going to make a loss on it.

Except our glorious leaders of course.

bnt

Nevore wrote: »

Except our glorious leaders of course.

Shhh. Don't look behind the curtain! I should have said "no Capitalist" ...

omahaid

Professor, without knowing precisely what the danger is, would you say it's time for our viewers to crack each other's heads open and feast on the goo inside?