Britain may have to seek IMF bail out.

  • Posted by a hidden member.
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    Jan 23, 2009 1:52 AM GMT
    Oh f**K

    http://www.guardian.co.uk/politics/2009/jan/23/davidcameron-conservatives

    (Although it is just a Tory saying it)

    cameron-460x276.jpg


    I think the economic crisis is a lot worse in Britain than people realise.

    Also I'm jealous of all the attention Canada seems to be getting in this forum. icon_wink.gif
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    Jan 23, 2009 2:43 AM GMT
    cameron_toff.jpg

    number 2 what a lot of bell ends
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    Jan 23, 2009 8:14 PM GMT
    I love that video.

    Yeah, I think everything's screwed over here. If I had any money, I'd be getting it out of sterling.

    We've got no industry left for various ideological crypto-Thatcherite reasons, so banking is all we do.

    Anyway I'm relying on Obama to kick-start the world economy and bail Britain out. Fingers crossed. icon_smile.gif
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    Jan 23, 2009 8:28 PM GMT
    Am I only person who thinks that Cameron is going to turn out to be a bond villain?

    He's squeeky clean, came from nowhere, monied, all points to one thing, classic evil-doer.
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    Jan 23, 2009 8:48 PM GMT
    Lost_In_The_Mail saidI love that video.

    Yeah, I think everything's screwed over here. If I had any money, I'd be getting it out of sterling.

    We've got no industry left for various ideological crypto-Thatcherite reasons, so banking is all we do.

    Anyway I'm relying on Obama to kick-start the world economy and bail Britain out. Fingers crossed. icon_smile.gif


    Don't hold your breath on the US bailing anybody out. I hope that China will repair its' social safety network so its' citizens will start spending more and saving less. The GDP in China increased by only 6.8% in q4 of 2008. Basically a recession because there % growth is on a much newer less mature economy.

    Basically any country that had a housing bubble, as well as a banking system that had less regulation and oversight, is now suffering terribly. The USA, UK and Ireland all had large increases in housing prices in the past 10 years (over 130%). Canada's was a modest 70%. Also Canada's banks are more strictly regulated, and Canadians are financially more conservative. That has come in handy in this crisis.
  • allatonce

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    Jan 23, 2009 10:58 PM GMT
    This is definitely an interesting time to be studying economics. I am applying to my master's in economics right now. In my mind I think that some of the bad habits, toxic assets, bad businesses will be purged from the market during this time. Hopefully in the long run a lot will be learned from this and when the world does manage to sort itself out through this crisis we will be the stronger for it. In the meantime there are a lot of people/countries that are going to need support to get through all of this. Hopefully it isn't too long lasting, though most predictions still seem to be putting us in recovery by the end of this year.
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    Jan 24, 2009 1:34 AM GMT
    Of course the last financial crisis in Britain had consequences...


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    Jan 24, 2009 1:46 AM GMT
    Lost_In_The_Mail saidIf I had any money, I'd be getting it out of sterling.

    We've got no industry left for various ideological crypto-Thatcherite reasons, so banking is all we do.

    Anyway I'm relying on Obama to kick-start the world economy and bail Britain out. Fingers crossed. icon_smile.gif


    At the current exchange rate, it feels painful selling GBPs icon_sad.gif But who knows how much worse/more painful it could be later?
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    Jan 24, 2009 1:54 AM GMT
    They likely will, although that probably won't be underway for a year or so, not until the crisis unfolds more. and it won't stop at Britain, it will hit the United States, making it in need of World Bank/IMF programs, as well as the entire "developed" world, including Europe, Canada, even growing economies like China, India, etc.

    I'd bet my bottom dollar on it, and that's saying something, because we should be saving our bottom dollars!

    this crisis has barely begun. 2008 will be seen as the crash, and 2009, will likely be seen as the Depression. compare to 1929, crash, and 1930 the beginning of the depression.

    "recession" is just the word used to describe the crisis so far... bubbles burst. hence the housing bubble, but that is the surface of the problem. there are bigger bubbles than housing. the housing bubble was built up in the 90s when the dot com bubble burst, courtesy of Alan Greenspan and the Fed, so that the whole thing wouldn't come crashing down then. instead, bad loans were encouraged by Fannie Mae and Freddie Mac, and liquidity was provided by the Fed. it was government sanctioned oligopoly capitalism at its finest!

    the housing bubble has burst... next, we have the DEBT bubble. the US is roughly 45 trillion dollars in debt, its never possible to get out of this. the US dollar is less attractive an investment every day, also courtesy of the Fed. since the Federal Reserve was created in 1913, the US dollar is today worth 3 cents of what it was worth then. the dollar is virtually worthless, the only value it holds is that which it holds in the faith of people to use it as a currency... but this is changing.

    its a bad investment, so other countries will begin to drop the dollar, this has already began. if somewhere like china drops the dollar, it will collapse. but its also bad for china, because their economy is suffering now, because they rely upon exporting to the US, which in its current recession and future outlook, will not be importing as much. so if the US economy nose dives, so does china. but china can't hold onto the US dollars for ever.

    debts will be called in, and the US wont be able to afford it. default on loans, and in come the IMF and World Bank, which will likely go through a reformation to set a new policy program to deal with developed nations (western industrialized countries), and the international system as a whole.

    the us economy will likely enter into a depression, taking the world with it. Alan Greenspan, largely the architect of the current financial crisis, who was also the longest serving Fed director in history, didn't always used to be on the "dark side". In the early 60s, he wrote some essays that went into an Ayn Rand book, titled, "Capitalism: The Unknown Ideal", in which he outlined how the Federal Reserve functions illegally in the US and that it caused the Great Depression.... interesting. i recommend finding that essay.

    many economists the world over are warning about a new great depression, dwarfing the last one.
    http://www.google.com/hostednews/afp/article/ALeqM5h6Os57hYEifFkfS0_4tWaYPMVJxQ

    even back in 2007 we were warned about a great depression:
    http://www.telegraph.co.uk/finance/economics/2811081/BIS-warns-of-Great-Depression-dangers-from-credit-spree.html

    the IMF even warned that there is a possibility of seeing riots in places like the US, with the IMF head saying that "social unrest may happen in many countries - including advanced economies"
    http://www.guardian.co.uk/business/2008/dec/16/imf-financial-crisis

    make no mistake, the REAL bubble has not burst yet
  • Posted by a hidden member.
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    Jan 24, 2009 3:42 PM GMT
    8 is a buffoooooooooooooon
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    Jan 29, 2009 12:18 AM GMT
    ^ Ouch. Good videos.

    I'm sure it's going to get messy here. The BBC are reporting that Britain is going to be worst hit out of the rich countries.

    There has been a pretty cosy consensus here for a long time about what the best way is to run an economy, but right now, all that's up in the air.

    Time will tell.