The Economy

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1929 Depression VS 2007 Recession/Depression

Tuesday, January 26th, 2010

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Originally posted 26th June 2009
Depression vs Recession
The jury is going to be out on this for some time yet although as I have stated if they don’t make significant changes and in the right direction then that’ll be where we end up. For those that don’t know the difference between a depression and a recession [...]

Everyone’s Taxes In The UK Are Going To Have To Go Up Full Stop!

Tuesday, January 26th, 2010

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Originally posted 22nd June 2009
An Unsustainable Trend in Debt
Basically, we have spent too much and we will be spending far, far more to get out of the current crisis. At some point this will need to be paid for and the only way to pay for it will be simply to create more revenue. So [...]

The US Housing Market Problem And How It Will Effect Us

Tuesday, January 26th, 2010

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Originally posted 15th June 2009
The Coming Mortgage Crisis
The US housing market is still very much in a slump and when you start to dig deeper you start to see just how big the problem will become. When you look at the American market you see that as a portfolio they are 70 – 80% geared and [...]

They Are Lying, Their Lips Are Moving

Tuesday, January 26th, 2010

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Originally posted 27th May 2009
I noticed a few things among the barrage of noise in the papers recently that were actually important. The RPI (Retail Price Index), which measures inflation and the relevant pressures, fell to its lowest level in 60 years. This is an important figure because it is a more accurate ‘waypoint’ than [...]

The Unemployment Tsunami

Tuesday, January 26th, 2010

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Originally posted 22nd May 2009
Following on from my last article, I thought I’d cover the unemployment issue in a little more detail. Now I’ve been banging on about how unemployment will take off around the end of this year for some time now, and even though the media and nearly all financial pundits seem to [...]

Humility Becomes The Bank Of England

Monday, January 25th, 2010

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Originally posted 18th May 2009
The quarterly work of fiction has just come out from the Bank of England and as usual they have got some pretty big assumptions wrong. However, in this report as well as in the press conference, I saw a more reserved approach from Mervyn King.
I think he had been riding on [...]

Persistence Is The Answer

Monday, January 25th, 2010

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Originally posted 22nd April 2009
I was chatting with Greg yesterday about how it is going finding properties for clients right now and he was explaining the problems that we are facing currently. The biggest problem we are having is the one that I mentioned would happen a few months ago.
That is, the first time buyers [...]

The Real Reasons Behind The Crises Part II

Monday, January 25th, 2010

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Originally posted 9th April 2009
What If We Were A Great Bank?
So let’s say we were a bank and we started out with say £2,000,000 of capital. So we started trading and we took in deposits and decided to loan out our deposits at a higher rate than the interest we were paying for the them. [...]

The Real Reasons Behind The Crisis Part I

Monday, January 25th, 2010

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Originally posted 8th April 2009
It has been said at the moment that if you are not confused then you are not thinking clearly.
The credit markets are frozen and despite the recent surge in the stock market, they remain so. So any recovery in stocks will turn out to be a false dawn until these are [...]

Full Steam Ahead Towards the Iceberg of Depression Turbo-Charged

Monday, January 25th, 2010

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Originally posted 20th March 2009
I wrote a few months ago that we were full steam ahead towards an iceberg of depression. Well in the last few weeks this lot have found how to strap a turbo-charger to the engine – very depressing! Which of course, is why it is called a depression.

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