Thursday, 16 October 2014

Hold Tight, Another Recession Is Coming

Disclaimer: Please do not try anything you read on this post at home. I have had 3 minutes training in a wide range of financial matters and am therefore widely regarded as an expert in this field. 

The sharpest decline in European stocks since 2011 has been followed by the sharpest decline since yesterday as investors dump stocks and shares amidst warnings of global economic weaknesses.
This followed below expected date from the two largest economies, China and the United States and an IMF warning that there was a good chance that a further Eurozone recession is looming large.
The Ebola threat, conflict in the Middle East and ISIS are also being blamed for causing the jitters as well as the fear that the recent upturn was fuelled by a temporary high fuelled by central banks pumping cash into the system.
In short, the whole thing is about to come crashing down around our ears again just as the world reached the same level it was in 2008 when the whole thing came crashing down last time.
Then the Governments went on a frenzy of austerity and cutting services and six years on we are back in the same situation albeit with fewer services and longer queues at the food banks.
So what's the solution? Easy, just do the opposite of what we did last time that never worked. 
Rather than hand billions to the banks, hand it to the citizens of the nations. They will spend it which will save business's from going bust, create jobs and the money would still end up in the banks greasy paws at the end of it all anyway.
If these measures would stimulate the market i would need to ask advice from someone who works in the Government Treasury Department and has had 4 minutes training as that's far above my pay scale.


Unknown said...

Indeed, what they are doing since 2008 would be absurd if you believe they are trying different results.
But if you consider that financial elite is richer now than 2008, then it makes sense, and so they will continue doing the same. At least until riot become too much annoying for their taste.

Lucy said...

You just know it will be a case of that didn't work so let's try it again. That said, the rich has certainly got richer so maybe it did work for them after all.

Q said...
This comment has been removed by the author.
Lucy said...

That's advanced economics for people with 5 minutes of training