Another day, another warning that the whole financial system is going to come crashing down around our ears in a repeat of the 2008 crash.
From where i am sitting it seems that this is just a continuation of 2008 as we are still suffering cuts and austerity to get us out of the hole 2008 left in our finances so hardly anything new.
On the stock markets today in London, New York, Shanghai and Frankfurt shares were dumped and the oil price crashed to its lowest level since 2003 on fears that China is heading into a recession that will drag the rest of the world economy down with it.
I can't honestly say that i understand any of it but it appears that those screaming that the wheels are about to come off are a bit previous but the ingredients for another plunge are there.
I don't think there is anything to worry about for us Brits. The Tories have made good use of all the years since the last crash, the painful austerity measures they have been continually introducing since 2010 and cuts to funding must place us in an excellent financial position and the massive reduction in our deficit according to George Osborne means that they have sufficient funds in place along with rigorous regulation of the finance houses along with prudent safeguards in place to prevent another meltdown.
Haven't they?
2 comments:
usually, historically, everybody wanted lower oil prices. in fact, people griped about rising oil prices. now lower oil problems are a "problem."
do you think we are being manipulated by the press/media? I think so...
so austerity is the problem you say. in other words reducing government expenses is bad when you have less income... the opposite means spending more on government which is notorious for poor productivity, and which produces no national revenue... which is good when you have less income...
Keynes probably got it right back in 1930, although many economists argue it was just coincidental good timing on his part, but for the rest of existence, the answer to every down turn is not expand government... austerity is not automatically the right answer either.
q
It does seem that half wanted lower oil prices (hauliers, drivers) but now the other half who kept quiet are now bleating as it is too low and hitting profits. Seems whichever way it goes half the population wont be happy.
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