Claymore_wam wrote:the idea that the recession was created by governments and the media is ludicrously naive. The problem was created by banks lending people money they could never afford to pay back simply so that the bankers could get their performance-related pay. It was 'pass the parcel' time and then the music stopped. I had been warning people about this several years before it happened and most simply didn't want to know.
Boy, where have I heard THIS story before. Oh yes, it was me saying the EXACT same thing in the universal health care off-topic topic. And it's exactly what happened here in the States. And on top of that, the amount of mortgage fraud and straw buyers purchasing homes with no intent of ever living there, and turning the properties over immediately for a ridiculous profit, all so that everyone could line their pockets with the monies spent on getting a new mortgage. It turns my stomach sour to think about it. Bush's plan to get us out of the recession that was coming after 9/11 was to deregulate the banks, thinking they would monitor themselves. Laissez-faire capitalism may be lazy on the part of the government doing it's job to watch the robber-barons, but it's certainly not fair. Unfettered capitalists need regulation or the rich will steal the poor blind every time. (Should we mention Getty & Rockefeller?)
Claymore_wam wrote:people in the public sector, providing much-needed services for everyone (and many of those being on lower than average salaries) are the ones paying for the unfettered rampant capitalism that stems back to Margaret Thatcher's de-regulation of The City on 27th October 1986 and the idea that a country can exist on service sector alone without any manufacturing. "Let the markets decide", she said. Well, they have - and look where it's got us! The rich have got richer and the poor have got poorer. I'm certainly not against private enterprise but there have to be limits on the banks. There is still a risk that they'll do it again at the moment as the regulation is still not properly in place. We also need a proper mixed economy - you can't create wealth if the entire nation just cuts each other's hair and takes in each other's washing!
Again, something I said in the health care topic. (Not saying you're stealing my ideas, Claymore, just saying I'm not simply agreeing with yours just to agree with you.) I read somewhere that economies need about 20% manufacturing to prosper and America is reaching below 10%. Very dangerous, indeed!
Claymore_wam wrote:The next thing to watch out for is inflation rising over the next few years as the effect of all the money 'created' by the Bank of England starts to be felt. If that happens, interest rates will rise sharply from their historic lows, which could in itself trigger lower growth - so we might see a return to stagflation. I hope not, however!
Amen, Claymore. Amen! America's not helping in this area either. Don't get me wrong. I recognize Obama and his people are a million times smarter than I. And I honestly do think they're doing just about as good a job as they can, considering the circumstances. And, for the short term, his plan to infuse government money into the economy may have temporarily righted the ship. But I'm still very concerned. Yes, FDR used the same basic concept to try to get us out of the Great Depression, but no two economic cycles are ever the same. First, a great amount of the gov't money in the 30s went into building useful things to give the manufacturing end of the economy a boost, road construction, dam building, etc. Second, a little thing like WWII presented a shitload of manufacturing opportunities. And there's no sense hoping for WWIII because we won't be manufacturing anything for that one. We'll be plowing out the snow from the nuclear winter. At least for as long as we're able.
(Okay. So I'm being a LITTLE fatalistic here, and maybe the last three sentences of the previous paragraph were a little over-the-top, a little overly dramatic. But I'm being perfectly honest with you about this -- these times frighten the shit out of me. I wonder if that's why, suddenly, I've become such a wamaholic once again? Thinking I'd better get it in now while I have a chance? And guys, you might want to avoid pointing out the obvious double-entendre in the previous sentence!)