Tony Posted October 2, 2011 Share Posted October 2, 2011 You said it was caused by countries spending too much. If by countries you mean governments then you are only partly correct. I pointed out that individuals and corporations played their part as well. Which of course is something you didn't point out yourself or perhaps didn't even register as being part of the problem. Could you elaborate on this point? To my recollection, individuals and corporations didn't suddenly find themselves unable to make their repayments en masse due to over spending. Link to comment Share on other sites More sharing options...
I1L2T3 Posted October 2, 2011 Author Share Posted October 2, 2011 Could you elaborate on this point? To my recollection, individuals and corporations didn't suddenly find themselves unable to make their repayments en masse due to over spending. Er...... individuals - sub-prime crisis in US corporations - banking liquidity crisis leading to bailouts (remember some banks were hours from being unable to stock ATMs) Your recollection is extremely poor Tony Link to comment Share on other sites More sharing options...
Wildcat Posted October 2, 2011 Share Posted October 2, 2011 Individuals were hardly responsible, they were lied to by those selling mortgages assured they were safe. This series from CBC might refresh Tony's memory about what went on. http://www.youtube.com/watch?v=ZWU65Zbka4E Link to comment Share on other sites More sharing options...
I1L2T3 Posted October 2, 2011 Author Share Posted October 2, 2011 Individuals were hardly responsible, they were lied to by those selling mortgages assured they were safe. This series from CBC might refresh Tony's memory about what went on. http://www.youtube.com/watch?v=ZWU65Zbka4E Some individuals were/are. Some not. The way mortgages were sold in the US is nothing short of scandalous. The industry in the UK is not much better, plenty of 'lie to buy' mortgage customers here. Some admittedly suckered in by bad advice but many who knew exactly what they were doing. Link to comment Share on other sites More sharing options...
Tony Posted October 2, 2011 Share Posted October 2, 2011 Er...... individuals - sub-prime crisis in US corporations - banking liquidity crisis leading to bailouts (remember some banks were hours from being unable to stock ATMs) Your recollection is extremely poor Tony My recollection is fine thanks. The individuals in sub-prime conditions were never able to afford the repayments. Banks are not corporations en masse. They are just the banks. As I said previously, individuals and corporations didn't suddenly find themselves unable to make their repayments en masse due to over spending. Link to comment Share on other sites More sharing options...
I1L2T3 Posted October 2, 2011 Author Share Posted October 2, 2011 My recollection is fine thanks. The individuals in sub-prime conditions were never able to afford the repayments. Banks are not corporations en masse. They are just the banks. As I said previously, individuals and corporations didn't suddenly find themselves unable to make their repayments en masse due to over spending. Last I heard banks in the UK are subject to corporation tax. If you want to split hairs for corporations read companies in my above posts. Individuals who couldn't meet their repayments had clearly over-spent on buying a house. Again, it's splitting hairs but you can substitute over-leveraging for over-spending in the case of the banks. I'm still not clear what your point is though - are you saying that you can't class individual and company debt with government debt? If so I agree they are different but fundamentally all are contributors to the debt problem. Link to comment Share on other sites More sharing options...
love_rat Posted October 2, 2011 Share Posted October 2, 2011 Curiously George Osborne has just been describing the worsening global economic crisis as a "global debt storm". Claire Perry, Tory MP is saying much the same thing. So in the minds of the Tories 2008 was not global, it was about Labour spending too much on public services. Now Tory spending is going through the roof, it's global. I think the poor loves are a bit confused. Bless em. At least he is finally admitting he doesn't have a clue. Link to comment Share on other sites More sharing options...
Tony Posted October 2, 2011 Share Posted October 2, 2011 I'm not splitting hairs. My words are perfectly clear and concise. The overwhelming majority of individuals and corporations were perfectly able to meet their repayments before, during and after 2008. To expand; if governments had properly regulated banking, and not overspent themselves, a good deal more individuals and corporations would still be able to. Sadly, many have suffered through absolutely no fault of their own, but at the fault of aforementioned governments and banks. Cause and effect - an overriding principle of the entire universe - should be remembered. The effect known as the 'banking crisis' was caused. It was caused by governments like New Labour's who simply couldn't keep it in their trousers (metaphorically speaking). Once we accept that simple fact we can put right what was and is wrong. Link to comment Share on other sites More sharing options...
love_rat Posted October 2, 2011 Share Posted October 2, 2011 This thing is serious, the last time there was a depression in the 1930s, it was world war 2 that boosted the economy, because we had to manifacture things for the war effort like tanks, buns, warplanes and bullets. I hate to say it, but another war is the thing that will kickstart the economy. Although its normally Germany that kicks things off in the war department (thats there job), I don't think it will be caused by the germans this time. If I was to place my bets I would imagine that terrorists wandering through a shopping centre would set off a nuclear bomb and that would be the trigger point for war. Link to comment Share on other sites More sharing options...
chem1st Posted October 2, 2011 Share Posted October 2, 2011 This thing is serious, the last time there was a depression in the 1930s, it was world war 2 that boosted the economy, because we had to manifacture things for the war effort like tanks, buns, warplanes and bullets. I hate to say it, but another war is the thing that will kickstart the economy. Although its normally Germany that kicks things off in the war department (thats there job), I don't think it will be caused by the germans this time. If I was to place my bets I would imagine that terrorists wandering through a shopping centre would set off a nuclear bomb and that would be the trigger point for war. If you remove war spending from the figures, the economy didn't recover till after the war, when the house building began! Link to comment Share on other sites More sharing options...
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