UK economy suffers 0.5% contraction

sammo62 · 25 Feb 2011 at 14:09

Robbie G said:
Recessions are great if you have a safe job and a mortgage.

I'm hoping there is another recession as then interest rates will stay low woop woop.

And I'm hoping interest rates spike as I have savings and no mortgage. Plus I want to move to America soon, so could do with the interest rates driving up the cost of the pound for when I move my money across.

Participant · 25 Feb 2011 at 14:17

It's funny how we can be sailing merrily along at 0.1% growth, then as growth becomes -0.1% growth it's suddenly an evil scary recession, the press latch onto it as our growth is now negative at 0.2% less than it was six months ago, and everyone is doomed. Embrace the recession, it's eliminating wastage! (And helping my mortgage!)

I know the above figures are not accurate but it illustrates how meaningless the definition of a recession really is.

sammo62 said:
And I'm hoping interest rates spike as I have savings and no mortgage. Plus I want to move to America soon, so could do with the interest rates driving up the cost of the pound for when I move my money across.

Meh, just leave your money in a UK bank then move it if you have to when the rates are more favourable.

sammo62 · 25 Feb 2011 at 14:21

Robbie G said:
Meh, just leave your money in a UK bank then move it if you have to when the rates are more favourable.

Not quite so easy when the money is being saved for things like a wedding, housing etc.

Participant · 25 Feb 2011 at 14:25

sammo62 said:
Not quite so easy when the money is being saved for things like a wedding, housing etc.

Get married here.
Rent in the US.

Or just suck it up and enjoy your new life.

merlin · 25 Feb 2011 at 14:26

Jan - March you can pretty much bet your bottom dollar it'll be negative again - VAT, thousands of public sector workers petrified of losing their jobs, other public spending cuts coming into play, inflation running rife.

britboy4321 · 25 Feb 2011 at 16:23

The theory is that there's no point in paying back debt if the capability the country then has to invest the money instead is worth more than the interest we pay on having the debt.

Or in personal terms:

If I borrow £600,000 at 5% interest, then lend it to someone else at 20% interest,

Simple statement: OMG you have so much personal debt you utter nightmare PAY IT OFF.

Clever statement: OMG you are making so much money you clever guy, do NOT forclose on the loan to pay off yer personal debt!

merlin · 25 Feb 2011 at 16:41

Large deficit wouldn't be quite such a major concern if we were asset rich.

Now, where did we put that large stock of Gold?

Oh wait - yes I remember - we accidentally sold it didn't we?

[TW]Fox · 25 Feb 2011 at 16:42

sammo62 said:
Plus I want to move to America soon

Good luck with that :eek:

Unless your fiance is American, obviously

sigma · 25 Feb 2011 at 17:23

merlin said:
Large deficit wouldn't be quite such a major concern if we were asset rich.

Now, where did we put that large stock of Gold?

Oh wait - yes I remember - we accidentally sold it didn't we?

*Awaits someone to blame that on the current government*

Hatter The Mad · 25 Feb 2011 at 17:31

merlin said:
Oh wait - yes I remember - we accidentally sold it didn't we?

Indeed, and bought euros with it. That was a good investment, wasn't it?

scorza · 25 Feb 2011 at 17:32

britboy4321 said:
The theory is that there's no point in paying back debt if the capability the country then has to invest the money instead is worth more than the interest we pay on having the debt.

Or in personal terms:

If I borrow £600,000 at 5% interest, then lend it to someone else at 20% interest,

Simple statement: OMG you have so much personal debt you utter nightmare PAY IT OFF.

Clever statement: OMG you are making so much money you clever guy, do NOT forclose on the loan to pay off yer personal debt!

All very well until the guy you've lent to goes bankrupt. That's pretty much what the US banks were doing with sub-prime lending. Ignoring risk is never a clever idea.