November 14, 2008
MP and former UK Chancellor Ken Clarke - Great Britian at risk of "meltdown", "catastrophic crisis", "full blown depression"
The UK toxic stew was similar to the US, if not worse - wild housing speculation, massive public and private debt, stupid 125% mortgages, over-reliance on financial services, a housing porn media and culture, "estate agents" saying get on the housing ladder or never be able to buy, and then bam. It all ended. Overnight.
Gordon Brown blames it on a "crisis that started in America", which of course is funny since when he was Chancellor he created the crisis.
The UK is going to get hit hard. Home prices will be down 20% this year, and I'd bet 20% again next year. Unemployment will triple. The bankers and their Lamborghinis will be gone. And people will wonder what happened.
The Brits were the kings of property speculation. They did it all over the world - Bulgaria, Spain, France, Italy, Estonia, Portugal, Latvia, Florida, you name it. They based an economy on housing, selling houses, furnishing houses, rehabbing houses, mortgaging houses, and spending their housing gains.
And then it all stopped.
And I don't know how they're going to get out of this mess. They can start with 0% interest rates and massive direct government injections, but I don't think it'll be enough, unless the stimulus is in the trillions, and immediate.
Get some bangers and mash. It's gonna get messy over here.
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14 comments:
Great link...but I'm gonna outdo you on this one Keith...read THIS off of Bloomberg...I don't know whether to laugh at this or fear it: http://tinyurl.com/626b4m
More senior citizens are picking pockets and shoplifting in Japan to cope with cuts in government welfare spending and rising health-care costs in a fast-ageing society.
Criminal offences by people 65 or older doubled to 48,605 in the five years to 2008, the most since police began compiling national statistics in 1978, a Ministry of Justice report said.
Theft is the most common crime of senior citizens, many of whom face declining health, low incomes and a sense of isolation, the report said.
Do you have Toad in the Hole?
Yummy.
I agree that the UK is unavoidably heading for some very scary times. However you have to watch this video with mind to its bias.
It's got that big T for Telegraph at the bottom, a notoriously pro Tory (Conservatives) newspaper (sometimes called the Torygraph). It's also well known to have a readership of advanced age, notice the question on pensions right at the end.
Mr. Clarke is also very pro-Europe, so I don't think it hurts that cause to be scaremongering about the state of things.
Pork Scratchings are a beloved British snack too.
Look like this fat bastard hasn't missed too many meals..
The Britishcano economy is tanked, roasted like a hedgehog skewered on a green bamboo spit over a fire. Why? Because the Britishcano speculator is just as irresponsible, greedy, materialistic, immoral, ignorant, pompous, hoity-toity, self-righteous, as Americano.
So is the Britishcano economy toasted or what?
Will Joe-Pint ‘O Stout and Jane Haggis cash out their lorry equity now? (Haaaaa, haaaaa, haaaaa, LORRY EQUITY...)
What will happen to all those big-ass double-decker buses that drive on the wrong side of the road?
Will the Britishcano be toasted as a hedgehog skewered on a stick from head to ass sizzling nicely on a bed of red hot charcoal?
(With apologies to Mr. Andrew Hac – please come back!)
-Mammoth
Keefer I thought post Christain super PC Brits were just oh so sophisticated than ingorant Yanks??
The arrogance of home equity fueled Brits was unbearable, Oi!
Ok Sashers,
We know the culture in Eurotard land, in all its history; individuals never took responsibility / ownership for their own dumb choices.
The collapse of their fake economy is the US’s fault, oh no! their Prime ministers fault, oh no! it’s the influx of Arabs etc.
Oh, and Christ was killed by the Romans yet it was the Jews fault.
Ahh, and how convenient, Christ died for their sins, nothing is their responsibility.
Approx. 70 short years ago all of Europe went on a killing spree because it was the Jews fault for them being super losers.
Get all your money out of Europe while you can, it is all going fall apart and reflect reality again.
Depression, what are you talking about it is vacation time.
Take advantage of the stronger US Dollar and go on a vacation.
http://www.theaustralian.news.com.
au/business/story/0,28124,24647746
-20142,00.html
We have seen large declines in the Australian and New Zealand dollars against the yen -- and the same goes for many other yen crosses; the Aussie has dropped 37 per cent against the yen over four months and the Kiwi has lost 31 per cent.
The Australian and New Zealand central banks have added fuel to the fire in recent months by slashing interest rates, reducing the relative yield advantage of their currencies.
Politicians are so corrupt and aligned with the system of inflation and speculation, that they will ONLY mention "recession" once we are already firmly PAST it.
I've been saying "depression" for a few years, since all the indicators were there. Now that Clarke is finally mentioning it, it must mean that the recession is in full steam.
Does this mean that all the 300 SF/-- Million and A Half Pound apartments on the Thames near the Millinium Dome will be discounted? How about a studio flat in Maidstone or Blackheath? Or a detached 500 SF/ 5 BR home in Sidcup? Maybe in walking distance to the Chemist so one can get their tranquilizers without driving on the wrong side of the road, and staying off the bloody M-5. "At the end of the daaay" their sunk just a tad worse than we are.
WOW, investorinpa ,I'm shocked at your post about the senior citizens
picking pockets to survive on Japan .What ever happened to the first son obligation to take care of the
elders ?
You always think of elders as being the parties that are weak and they are usually the victims of crimes ,but apparently not .
Wow,if older people resort to crime for survival ,what would the young able-bodied do if they are having problems surviving ?
This whole situation is getting really out of hand and getting more and more brutal . Wow,the bubble was World wide in one form or another. Not good ,not good at all .
Sounds like the UK Chancellor is
trying Paulson's scream fire in a movie house ploy to get bail-outs that will be accepted by the
public . It's becoming a mad mad mad World .
The brits are totally screwed. Not only because of their housing bubble, which seems to be worse than ours, but also because of their radical socio-facism, which has resulted in their creating a tracking and surveillance society that is unmatched in recorded human history. and they promote extreme liberal policies that only the most extreme lberals could support. Britain is quickly becoming a pariah. The brits are well on their way to being the biggest threat to democracy and freedom since hitler.they either have to change course quickly or they will be consigned to the ash heap of history and become a legend among the nations.
Boy right at the end did he ever get it right...
The public service is expecting a pension for the rest of their lives as a percentage of their final salaries.
And to pay for this...higher taxes on their children then they were willing to pay to support their parents.
This is such a looming issue...in my mind.
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