4 (almost 6) years since the creditcrunch crisis hit are we over the worst ?

[racehorse-80s]

We have had 4 years of Quantitative easing /Bank bail-outs/increased taxes/low interest rates and on going Government cuts but the economy seems to be struggling to getback to real growth and stability still.
Have the measures above worked or should we expect even more pain?

[GUCCI Eagle]

I don't think we're out of the woods yet, there is still a chance of a double dip. But slow, steady growth is the best we can hope for I think. You only have to look at the US where they've spent more only to have to later raise the debt ceiling. Cutting or spending? What's the answer? I don't think even the best economist knows.

[OscillateWildly]

Cut in the good times, spend in the bad times.

Sadly, in the good times no one accepts cuts. They are only accepted when the shit hits the fan- and that is the worst time to cut.

We are struggling because of a lack of demand and low consumer confidence. Rather than stimulating our struggling economy we are sucking growth out of it and at the same time making people fear for their jobs- hence why consumer spending and confidence is so low.

[Jordan's Jacket]

It's going to get a lot worse. Inflation and high unemployment on their way.

[beef]

Seeing as we are spending our way out of debt I imagine the next crash will be worse.

[OscillateWildly]

Originally Posted by beef

Seeing as we are spending our way out of debt I imagine the next crash will be worse.

We're not though.

Inflation, if it is coming, will help with the debt of course.

[racehorse-80s]

Originally Posted by GUCCI Eagle

I don't think we're out of the woods yet, there is still a chance of a double dip. But slow, steady growth is the best we can hope for I think. You only have to look at the US where they've spent more only to have to later raise the debt ceiling. Cutting or spending? What's the answer? I don't think even the best economist knows.

I am far from a financial expert but it seems like the Bank debts have just been transferred to the Governments of the countries that bailed them out .

[GreatGonzo]

Originally Posted by OscillateWildly

Cut in the good times, spend in the bad times.

Sadly, in the good times no one accepts cuts. They are only accepted when the shit hits the fan- and that is the worst time to cut.

We are struggling because of a lack of demand and low consumer confidence. Rather than stimulating our struggling economy we are sucking growth out of it and at the same time making people fear for their jobs- hence why consumer spending and confidence is so low.

Very true, but now the bad times are here we have nothing in the pot to spend because during the good times the government of the time was still spending far more than it was making. It even sold off some of our reserves which with hindsight looks incredibly foolish.

We were told it was the end to boom and bust, the bust happened but they helped stifle to boom before it as well. In an ideal world the government should be looking to reduce the national debt, and run a budget surplus not defecit when things are going well. Then there will be some space with which to work to spend if/when the shit hits the fan.

When was the last time the UK ran a budget surplus?

[racehorse-80s]

Originally Posted by GUCCI Eagle

I don't think we're out of the woods yet, there is still a chance of a double dip. But slow, steady growth is the best we can hope for I think. You only have to look at the US where they've spent more only to have to later raise the debt ceiling. Cutting or spending? What's the answer? I don't think even the best economist knows.

It seems so mad to me that the whole crisis was triggered by huge borrowings but Countries like Greece and now the US have to increase their borrowing to record levels.
Obviously huge cuts are going to be needed which means the revenue from taxes and growth will probaly evaporate and make the Loans even more difficult to repay.
One big unsolvable vicious circle possibly?
It appears to me the Banks problems have just been passed over to the soveriegn states who bailed them out originally ?

[racehorse-80s]

Originally Posted by beef

Seeing as we are spending our way out of debt I imagine the next crash will be worse.

1929 all over again if panic hits the markets IMO

[GreatGonzo]

Originally Posted by beef

Seeing as we are spending our way out of debt I imagine the next crash will be worse.

I thought the whole point was that we are not spending our way out of debt? We are cutting our way out of debt. The US is spending by the looks of it but i am not sure you can accuse the current government of spending its way out of a problem, although some economists reccomend that.

[CallMeBernard]

My worry is that there are still a few more problems and weakness that are still to show their face and will slow down growth.

My hope is that people and institutions understand the implications of fiscal irresponsibility a bit more now. I remember a few years ago several nations in the Eurozone were allowed to have debt larger than the agreement called for; I dare say if anybody tried that again in the next few years they would get a drubbing.

I also hope that the current situation is giving us an opportunity to correct some of the flaws in our current set-up- for instance, the recent debates over public/ private pensions. For once, the argument isn't about staus quo vs change, but rather how we change, not whether we should or not.

[weltklasse]

Originally Posted by GreatGonzo

When was the last time the UK ran a budget surplus?

[Maiden Eagle]

Originally Posted by Jordan's Jacket

It's going to get a lot worse. Inflation and high unemployment on their way.

Thanks - That's just made me feel a lot better !

[Psychokiller]

The saddest thing is that this whole financial shit stuff was caused by bankers, so the country decided to elect a government full of bankers' whores.

[movingForward]

Originally Posted by racehorse-80s

4 years since the creditcrunch crisis hit are we over the worst ?

We havent even seen the start of it! Its going to get miles miles worse once the euro collapses

[dee eff]

Originally Posted by Psychokiller

The saddest thing is that this whole financial shit stuff was caused by bankers.

Was it?

Truth is it was driven by greed. Unsustaionable greed. From CEO level to the man in the street.

[GUCCI Eagle]

Originally Posted by dee eff

Was it?

Truth is it was driven by greed. Unsustaionable greed. From CEO level to the man in the street.

I think it was more sinister than that.

[Psychokiller]

Originally Posted by dee eff

Was it?

Truth is it was driven by greed. Unsustaionable greed. From CEO level to the man in the street.

No, it's only greed when working class and poor people want to have stuff. When middle class and CEO level twats want to have stuff they're just being "rewarded for hard work".

[GreatGonzo]

Originally Posted by weltklasse

Please correct me if my timeline is inaccurate but under Maggie we tried to reduce our borrowing and we started heading for a surplus. the crash of teh early nineties happened and in troubled times we spent heavily to help the recovery and we were well on our way back up towards the surplus when Labour came in and they contined in that vane. What i would like to know is what happened to the line in the past decade. There is no reason it had to drop down, the country was doing well, 9/11 which caused problems i think is included in that timespan on the graph so what happened to the line?