Generation
Member
Registered: 7th Jul 09
Location: Essex
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I noticed no difference either TBH. I know people who did though
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ed
Member
Registered: 10th Sep 03
User status: Offline
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All the manufacturing firms that are on a 3 day week are just doing it for lolz and the building next door to me isn't complete because the BBC told David McLean to shut up shot to make Labour look good.
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deano87
Member
Registered: 21st Oct 06
Location: Bedfordshire Drives: Ford Fiesta
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quote:
Originally posted by Kevxx
the value of money goes down, when there is far too much in circulation. generally thats whats happened.
If I'm right, I think you'll find that is inflation.
Recession is when the countries GDP decreases or 'recedes' for 3 consecutive months.
I think the recession was really caused by the Americans and their silly mortgage lending.
Of course the UK situation isn't helped by record personal debt 
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neil h
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Registered: 28th Sep 06
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Iirc its 2 consecutive quarters, so a 6 month period.
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LeeM
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Registered: 26th Sep 05
Location: Liverpool
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quote:
Originally posted by pow
Thats a little narrow minded lee_wee.
My Dad nearly lost his job 6 times (6 rounds of redundancies) in 2 years... he's a lucky man to still have it tbh!
no i understand people were affected by it, sorry about your pa.
but i think al the cutbacks and job losses resulted from the media overhyping a situation that wouldnt have happened without their input
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Matt L
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Registered: 17th Apr 06
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quote:
Originally posted by mattk
banks lending money to people who couldnt pay it back,
banks loose money
government bail them out
banks stop lending
people stop buying
companys stop making
companys loose money
companys cut costs by cutting jobs
unemployment puts strain on the econamy
econamy shrinks
pound looses value
ect
Pretty much that but with the added fact gordon brown told the world when he would be selling the gold that we had so the price fell through its arse (or so im led to believe).
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Winemaker
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Registered: 8th May 07
Location: Down Under
User status: Offline
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Bernie Madoff
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DaveyLC
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Registered: 8th Oct 08
Location: Berkshire
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The Recession happened because the western world is full of greedy cunts!
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Rick Draper
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Registered: 10th Feb 01
Location: Cheshire
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Man City caused it.
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adiohead
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Registered: 28th Sep 01
User status: Offline
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Half Pint
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Registered: 25th Mar 02
User status: Offline
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from my limited knowledge it all started with lending becoming too much and when people started to struggle in paying this back it triggered the banks to create risky asset bundles with high profit and high risk portfolios as the position got worse the so called high profit elements also started to turn sour and the banks started to make massive losses....
I beleive the goverment knew this but kept it quiet so people would still borrow and spend hoping it would all resolve itself naturally but it could not happen it was unstatainable....
so when the brown decided to bail out the greedy basket case scottish banks it changed the GDP ratio for the UK meaning we as an ecomony were contracting, coupled with other ecomonies doing the same and output decresing only went further to make the position worse...
simplistically if your not buying suff or working the govermenant does not get any taxes meaning we go further into the red and so on...
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Dr Pepper
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Registered: 21st Sep 02
Location: oxford Drives Renault Clio RS200
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quote:
Originally posted by lee_wee
i dont think it really happened. i didnt notice any difference at all 
Thats because the banks were bailed out.... we havnt even started paying the money back yet....you will notice a diffeference for the next 50 years while we pay it back..if we ever do
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Paul_J
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Registered: 6th Jun 02
Location: London
User status: Offline
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No one has mentioned the actual reason it failed so badly.
The banks were lending to people who couldn't afford it (sub prime mortgages) - then taking this 'risky' debt and bundling it up with some 'good debt' - to give an overall 'good debt' package.
They would then sell this debt to other banks - without the other bank knowing that it contained bad debt (sub prime mortgages etc).
... Therefore, the banks who were selling it believed to be winning - because they were able to make money from bad lending and shift the liability off them.
and the banks who took the debt believed to be winning, as they were buying 'packages of good debt' (which have to be paid back at interest rates and therefore make money) - for less than the money they'll make! Therefore a winning situation (obviously unaware of the bad debt that was bundled up inside it).
... The result was... EVERYONE WAS WINNING. Thus banks wanted to lend more and more, to more and more risky situations and other banks were wanting to buy more and more of this 'GOOD DEBT'.
... The real problems occured, when the banks started buying their own shit back / the bad debt was so well disguised that no one really knew they had it / who had it.
... When people started defaulting on their loans, they all started realising that they all had a lot of shit debt on their books... this all started it off going downwards and the rest is history.
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micra_pete
Premium Member
Registered: 23rd Apr 03
Location: West Yorkshire
User status: Offline
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capitalism
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