Six Good Things About This Recession

Now tell us why the measures taken to combat this recession are such good news for people who were stupid enough to save instead of spending.

The bias towards profligacy, irresponsibility and "something may turn up" Micawberism on this site is increasingly emetic. No doubt it reflects the priorities and mistakes of writers. They should ask their parents if they are rejoicing.

Oil at $50 a barrel. How long will that last for?

"world’s central bankers are all over the problem, as are world governments" - sorry, where have they been for the last ten years? On holiday? Did they all come back the other day to find that the temps they'd left in charge have messed everything up?

There are too many medium-term unknowns for any of us to have a clear picture of what the outcomes will be but the balance of the siuation at present could well be government buying itself out of trouble by borrowing only to leave us worse off in the future.

On the one hand younger people will be able to take out cheaper loans (if they can get them) - goodish. However, many parents who help thier young adult offspring are seeing their savings interest reduced and share values, dividends etc drop - bad.

I am only too pleased to see petrol and diesel prices falling - good..but this gives the government scope to add extra taxes while prices are low only to retain such taxes when they rise again - very bad.

Perhaps a mix of persoanl tax relief and increased public spending would be wiser than putting all the eggs in one basket. I am sure many people would benefit in getting into the private housing market by the lower prices and lower interest rates coupled with a return to mortgage interest tax relief.

The public sector has never been a good example of wise spending. If efforts were more focused on leaving the people more money and choice, maybe there would be less need to grow inefficent amd eneffective public 'services'.

I say fair play to Gordon Brown and co. The government cant just sit back and watch the banking system collaose,that would be catastrophic! Paullypips, DanCorp, Luniversal, where would your savings be then? There wouldnt be enough money to compensate everyone to the fullest extents of the compensation scheme!

I believe that today, with the help of the queen, GB delivered something for the working man, in particular the welfare reform! Its ok quibbling about interest rates but throughout the whole of this credit crunch one group have remained immune! People on benefits! Its good that they should be supported back into work! Its been disheartening in the past few months to see the house i bought decrease in value, petrol and fuel prices rocket (although petrol has come down), and most other prices increase, to the extent that my take home pay has been eaten into more and more! Meanwhile Mr & Mrs x from round the corner, who dont work, have their house, council tax, fuel (partly) paid for with my ever decreasing wage! They even get spending money after we have paid their bills for gods sake, which is used to promptly buy a brand new car!

I think that these are steps in the right direction from the government, of course we all know why he is doing it (election anyone?) but it is still a small step in the right direction!

Gold and Brown anyone!!!

One good thing to come out of this recession?

1) Maybe Labour and the Tories will climb out of bed with one another.

The coming recession will present the country with many political-economic decisions. What to do with three million unemployed or people loosing their homes. I don’t think the economy can any longer be seen as apolitical, nationalised banks, fiscal stimulus, two years ago the U.S would have declared war on us ‘commy’ lot.

Political ideology has been exposed for all its hypocrisy.

Old socialists are now free marketeers hoping the government doesn’t intervene to save corrupt and greedy bankers. (Noninterventionist)

Old capitalists say ‘the government can’t just sit back and let the banking system collapse' (Pro-nationalisation)

Glad we could put these outdated ideologies to bed, let’s hope the next election offers us some real ideas/choice.

Listen to Luniversal and feel sorry for us that have worked hard, saved, invested, paid our taxes and are forever penalised!!!
Den Clare :)

Sorry Hungary, but your comment about "People in the private rental sector are up against increasing rental prices (due to increased demand)" is way off.

There is a massive oversupply of rental properties at the moment, which is causing rental prices to drop significantly. Some of the guys at my office have just upgraded to a new rental property which is twice the size for the same rent as the previous place.

The best thing -- and it's a potentially great thing -- is that market forces will ultimately win. But at a heavy price! Contrary to Supasap's hopes, the immediate prospects are for higher unemployemnt and low interest rates. In many ways this is the worst of all possible bloody worlds. And there's a good reason for it. It's called the bullwhip effect.
The risk is that the drastic measures taken by mosy developed country governments and by many public and private companies are far too drastic for the situation that emerged in 2007. Forecasting is a mug's game, not least because the assumptions on which most forecasts are based invariably turn out to be mistaken. Governments are clueless at making forecasts. Yet, they take massive steps to try and achieve them, thereby actually making an even bigger mess than would have been the case if they had done far less or nothing at all.
One huge mistake made by governments is to have become bigger. If unemployment has been low in the past ten years, and if it will rise steeply in 2009, it's because far too many rubbish jobs have been created. Tragic for those who took them, but then the laws of supply and demand do rule.
Behavioural economics has lots of interesting stuff to say about market imperfections -- the ludicrous state of the housing market being a prime example. The lessons of BE will be painful but the good news is that governments will have to get out of the way of markets. There's no way out of our having to take this medicine but we'll all feel a lot better for it. Reason enough to feel optimistic in the gloom.

Kippermanbike,

I too would like the price of petrol to come down but unfortunately there is too much tax on petrol for the oil price to make much difference.

Tax makes up around 70% of petrol price due to the 'fuel price escalator' (introduced by conservatives)

Added to which petrol has only depreciated by a smaller fraction due to the 25% fall in the £.

Add in cost of purchase for the oil currently being used ($50 is the spot price and probably not what the oil companies used to calculated their original cost of oil in the tankers)

Means, we still get screwed!

What a lot of rubbish is spouted here!
I have lived through a number of recessions, and someone gets hurt, always. Houe prices will reduce, but jobs will be insecure, so you cannot buy them. Pensions are mainly share based, so pensioners will suffer. Brown is pushing the cost of all his bailout into the 'future', he has no idea what the cost will be , but those in work and with savings will pay for it.
If you have cash then get out, Britain is going bust, the ppound is inking and will bu very little oon, imported inflation will cost us dearly as food, petrol, cars etc will suddenly cot a lot more. We are living in the 'tween time' before the tidal wave of exchange rate effect hits us.When it does, it will not be pleasant.As for 2% interest rate, you go to a bank and try tto borrow at that rate!, the staff will have a laughing fit.

It will recover , but not before many are bankrupt, jobless, and teh living standards have reduced dramatically to the level that britain can really afford as a third world economy.