Sure we’ve had one recession, but what about second recession?
We will have one, the Bank of England (as with all central banks) will not stop until unemployment rises and we are in a recession. The economy is far stronger and more resilient than critics wanted and so it’s taking longer to happen but it will happen.
Is factory output dropping not an expected consequence of the BOE increasing interest rates? The goal is to cool the market by cutting spending so if spending is cut, and demand is, output will have to be cut? Can someone ELI5 that this is bad for us or not?
This is the plan, the BoE wants a recession. They think it’s the only sure way to lower inflation. They need to see unemployment go up and people spending much less, a recession will do this.
A stopped clock is right twice a day.
The Guardian has been predicting a recession since Covid started. They’re bound to be right soon!
In the UK there are about 2m properties under a buy to let mortgage. With the current interest rates, most of them (if not all), will become unprofitable. Right now they are entering the market, pushing the prices down, sending first time buyers into negative equity, whilst pushing rents up.
All of the above is hardly a surprise yet the government has failed to act on it (they probably know there is nothing they can do).
Is there something I am missing or am I being overly pessimistic?
Economy is fucked – print more money and prop it up.
People are fucked – raise interest rates, cause a recession, proper fuck em.
Market Gon crash – errm…. Print more money.
Market is GOING TO CRASH – the taxpayer will pay the price.
However the missing point here is that higher inflation is not usually caused by huge increases in food and energy costs.
8 comments
Sure we’ve had one recession, but what about second recession?
We will have one, the Bank of England (as with all central banks) will not stop until unemployment rises and we are in a recession. The economy is far stronger and more resilient than critics wanted and so it’s taking longer to happen but it will happen.
Is factory output dropping not an expected consequence of the BOE increasing interest rates? The goal is to cool the market by cutting spending so if spending is cut, and demand is, output will have to be cut? Can someone ELI5 that this is bad for us or not?
This is the plan, the BoE wants a recession. They think it’s the only sure way to lower inflation. They need to see unemployment go up and people spending much less, a recession will do this.
A stopped clock is right twice a day.
The Guardian has been predicting a recession since Covid started. They’re bound to be right soon!
In the UK there are about 2m properties under a buy to let mortgage. With the current interest rates, most of them (if not all), will become unprofitable. Right now they are entering the market, pushing the prices down, sending first time buyers into negative equity, whilst pushing rents up.
All of the above is hardly a surprise yet the government has failed to act on it (they probably know there is nothing they can do).
Is there something I am missing or am I being overly pessimistic?
Economy is fucked – print more money and prop it up.
People are fucked – raise interest rates, cause a recession, proper fuck em.
Market Gon crash – errm…. Print more money.
Market is GOING TO CRASH – the taxpayer will pay the price.
However the missing point here is that higher inflation is not usually caused by huge increases in food and energy costs.