The International Monetary Fund (IMF) suggests that the public debt of the ten richest countries will rise from 78% of gross domestic product (GDP) in 2007 to 114% by 2014. These governments will then owe around $50,000 for every one of us
They add that this crisis has not run its full course, with the likely addition of a minimum $3 trillion write-down of the banks. This destruction of bank capital – paid for, ultimately, by taxes on the working and middle classes – this will be added to by reduction household wealth.
The OECD, says: “The crisis will wipe out 3% of rich countries output for ever”. This is a conservative estimate
What then is the scenario for the poorest countries - Asia, Africa and Latin America.
Tinkering around with insignificant possible policy will not help when you are looking at global impacts.
WAG needs to be taking advice from macro - economists who understand these trends and how to sandbag us in the most effective way from the consequences.It is the cavalier way the Banks have operated that has put us in this situation.
It should be much more than strict regulation, it should be castration.
Nice girls don’t do it
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We know that women are often paid less than men for the same work. But are
women themselves at least partly responsible for this situation?
1 hour ago
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5 comments:
Scarey.
I wonder how it will all be repaid! I suppose it will come out of our pockets one way or another.
WAG taking advice on the welsh economy from real economists, rather the Labour party puppets at the helm of the head of the CBI and FSB in Wales that'll be the day.
It’s very worrying especially that WAG couldn't strike a deal resulting with the loss of Anglesey Aluminium shows how little WAG knows about the knock on effects of losing the plant across North Wales.
Welsh people should be worried about the American Administration's plans for adding an 8% tax load onto American small businesses ... the downstream fall out will include less demand for imports from the UK, including Wales making the loss of Anglesey Aluminium jobs, bad as they are, a drop in the bucket.
The problem is that the economists got us in this mess to start with. Who was it that thought a economy based almost entirely around financial services was a sensible or sustainable idea?
Where were the economists warning about the likely impact of the banks selling debt at unsustainable levels?
Find the ones that did and take advice from them. Ignore the others...
Didn't need experts telling Gordon Brown about the dangers and fallout from encouraging cheap and plentiful credit in turn causing a boom in house prices as people could afford larger mortgages at cheap interest rates, but there would come a point when house prices would peak and then fall creating -ve equity and impact on the economy - pretty much how it always goes.
Truth is, Gordon Brown thought he could outfox the market and fool everyone when he encouraged major British lenders to take leave of their senses and go for “market share” in the mortgage loan business and lend money without taking proper account of risk.
Ultimately, the market wasn't fooled, and a credit squeeze became inevitable when house prices headed south. Even when credit is cheap, there needs to be some rational between demand and supply or real estate prices climb leading to an inevitable downstream market correction.
The really bad thing here is that it has impacted on jobs - when people get into negative equity they pull up the draw bridge and stop spending. Regular home owners with paid off mortgages seem to do the same thing compounding the problem. The UK desperately needs a good rental market, nice apartment blocks at reasonable rents to act as a buffer.
This mania/perception of looking down on folks who rent verses owning their property is hurting the nation. But hey, maybe the people want to be hit with perpetual boom and bust cycles in real estate. But it impacts on jobs too, which is bad.
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