BBC: Market crisis 'will happen again'

[Izi]

http://news.bbc.co.uk/1/hi/business/8244600.stm

The world will suffer another financial crisis, former Federal Reserve chief Alan Greenspan has told the BBC.

"The crisis will happen again but it will be different," he told BBC Two's The Love of Money series.

He added that he had predicted the crash would come as a reaction to a long period of prosperity.

Is it just me, or do the BBC print more and more retarded stories?

Was anyone doubting that there wasn't going to be another recession in 30 (or so) years? Its natural life cycle of economies.

 

[Raymond Lin]

I was thinking the same, it's almost like saying Christmas comes every year.

 

[wordy]

Course it will, after a few years, when everyone is outraged about soemthing else then the banks will start getting greedy again and the bubble will burst again. The greeedy people haven't gone away they're just going to have to be more sutble in milking the system for a few years.

 

[themistry]

It's called the double dip theory, and means the next recession will be coming very shortly (6months - 2 years - who know).

 

[a1ex2001]

The BBC like all new outlets these days it would appear needs to have an endless line of sensationalist doom and gloom head lines, now it appears that the current recession is easing and that swine flu isn't going to kill us all they need something else to grab attention so they make common sense look like a news story.

 

[scorza]

Yes the BBC should ignore what Alan Greenspan says in an interview /facepalm.

 

[J.B]

I thought the exact same thing when I read this story, what a waste of bandwidth.

I'm not a economist but I could have predicted that!

 

[EddScott]

More like 30 months of less. What utter cobblers.

Banks are making far more on lending than at any time before the recession even started.

Interest rates at 6%, lending at 7% at most. Interest rates at 0.5%, lending still around the 5+%. Quite a good ratio,yes?

 

[Skidder]

More like 30 months of less. What utter cobblers.

Banks are making far more on lending than at any time before the recession even started.

Interest rates at 6%, lending at 7% at most. Interest rates at 0.5%, lending still around the 5+%. Quite a good ratio,yes?

yes, but, the banks have less money to lend and less appetite

 

[meghatronic]

Is it just me, or do the BBC print more and more retarded stories?

I can no longer condemn the BBC after they did a story on some of my work.

But yes, they do.

 

[peter_hutson]

More like 30 months of less. What utter cobblers.

Banks are making far more on lending than at any time before the recession even started.

Interest rates at 6%, lending at 7% at most. Interest rates at 0.5%, lending still around the 5+%. Quite a good ratio,yes?

I don't think it works like that. The banks borrow money at the LIBOR rate, which until recently had been much higher than the BOE rate. Good interest rates can still be obtained, you just need a much higher % deposit. In the current climate, is it really that unreasonable for banks to consider those with low equity to be high risk and hence compensate with a higher interest rate?

I'm no fan of the banks, but neither do I want to see a return to cheap easy credit with little or poor risk management. It hurt us all in the end.

 

[chiLLZ]

I think it will be one recession but the perceived upswing is a bubble caused by all the stimulus and quantitative easing.

 

[dirtydog]

Yes the BBC should ignore what Alan Greenspan says in an interview /facepalm.

Maybe the media should at least stop treating him as some sort of financial guru or god.

 

[cheets64]

Double dip will come when interest rates go back up and people think its safe to spend and get back into debt. Housing market is still way over priced and reports are saying house prices have gone up in the last few months. Crazy

 

[dirtydog]

Double dip will come when interest rates go back up and people think its safe to spend and get back into debt.

So people would wait until rates go UP before thinking it's safe to spend on credit again?

Housing market is still way over priced and reports are saying house prices have gone up in the last few months. Crazy

Have you moved out of your mum's yet?

 

[mattheman]

Remember when the government said we are not in recession, remember when the govenrment said the banks arn't in trouble.
did you know that we were with in hours of cash machines being closed, not handing out cash.
Do you really think high house prices have any added benefit to our economy, you need to understand that in order for the government to borrow they need higher house prices pushing up the uk net worth.

 

[The Mad Rapper]

It's called the double dip theory, and means the next recession will be coming very shortly (6months - 2 years - who know).

More commonly known as a 'W' shaped recession.

 

[dirtydog]

I personally think the celebrating of rising house prices is perverse and bizarre but it seems to be ingrained into the UK psyche.

 

[lambda]

What they are saying is that after all the economic stimulus has ended, the country will fall back into a recession.

You need to understand that all that is happening now, is the government is temporarily improving the economic conditions, so everything is fine until the elections are held. Its pretty clear, for anyone with a brain.

It will get nasty after the election. None of us have really experienced economic advertsity, but its going to be envitable.

 

[dirtydog]

None of us have really experienced economic advertsity (sic)

How do you know how old we all are and what we have experienced?

, but its going to be envitable.

Right. At least I have the consolation of being able to spell and punctuate.