Who do you blame for the recession

Dolph · 8 May 2011 at 17:23

hola_adios said:
I think we have a recession (and possibly a depression) in our hands indicating quite the opposite "human greed trumps logic" I am afraid.

It shows many things, but nothing related to a free market, because the market that failed wasn't free, the people aren't free and so on.

I do agree with you regarding the banking corporations, they should have never allowed them to grow so big for starters.

If they didn't want a few large banks only, they shouldn't have regulated to make the barriers to entry so high...

hola_adios · 8 May 2011 at 17:36

Dolph said:
It shows many things, but nothing related to a free market, because the market that failed wasn't free, the people aren't free and so on.

If they didn't want a few large banks only, they shouldn't have regulated to make the barriers to entry so high...

You mean that the system put in place during the 80s by Reagan and Maggie has failed?

Dolph · 8 May 2011 at 17:44

hola_adios said:
You mean that the system put in place during the 80s by Reagan and Maggie has failed?

Yep, although you have to factor in Gordon Brown and Bill Clinton's changes to the setups as having significant contributions towards the failure...

hola_adios · 8 May 2011 at 17:50

Will give you that, it is a pity since the original plan was good, we just ended up with a Plutocracy instead of with a truly global free market.

MrMoonX · 8 May 2011 at 17:54

fat cat bankers

Grimley · 8 May 2011 at 18:10

Some peoples greed & incompetence. OK some people blame the government or the bankers or the yanks or the price of oil but in the end it's all down to greed & incompetence.

Tiny Clanger · 8 May 2011 at 18:57

Sadly - we're all to blame to a greater or lesser extent

Spit · 8 May 2011 at 18:59

Its a complex issue originated from Human greed. This book is great at explaining it:

http://en.wikipedia.org/wiki/Extraordinary_Popular_Delusions_and_the_Madness_of_Crowds

I dont think we have seen the worse of it yet anyway. Houseprices still need to drop, interest rates to rise, inflation is high, oil is only going higher etc

Crap future to look forward to.

KNiVES · 8 May 2011 at 19:06

I blame us.

The people, who keep claiming they're middle class while going broke by buying everything on credit cards and owning none of it.

It's never our fault, but it really is actually.

Dave M · 8 May 2011 at 19:12

robskinner said:
So who do you think caused the recession :

a) Bankers
b) Government
c) Someone else (who?)

(c). The banks, government and 'equity rich' consumers pushing us way past the point we should have had a little recession through a property funded debt bubble.

It was just a matter of time, the credit crisis in the banking sector just brought it to a conclusion sooner than it may otherwise have. The longer it was put off the harder the landing would be.

They're still sustaining the housing bubble with impossibly low interest rates, if there ever is any sniff of a real recovery they'll have to raise interest rates and the housing bubble will truly burst pushing us back into a sharp short recession (a correction).

Markets stink but nothing is ever gained (long term) by trying to manipulate them.

Mercenary Keyboard Warrior · 8 May 2011 at 19:41

Personally I really want to see a housing correction, its the only way I see a notable and marked change in the medium turn fortunes.

The census has a measure of people above a certain age that are still living with parents who traditionally should have moved out (think its 25 but may be wrong) thats gone up 80% since the last census.

The over priced houses are causing a long term lack of new buyers. New buyers are needed to push the market forwards and without its just stagnating. A boyant housing market generates such wide demand it cant be overlooked, from building to decortaing to diy to estate agents (grrr) to solicitiors to banks to etc etc It affects the whole economy.
Sadly I dont see it, when it should have happened ie the start of the recession it didnt happen due to the fiscal easing so now we have to live with a longer term flatter correction which could take 10 years.

If ever we needed a massive and strategic plan on housing its now, IMO we should fund a massive country wide council building programme to drag down rental prices (pushed high due to loack of social housing and hence greedy buy to letters letting to councils) which will have a knock on effect on the rest of housing and at the same time fix the shortage of supply in that sector, and create some serious employment.

tbs · 8 May 2011 at 20:09

Sweden

mundstick · 1 Jun 2011 at 12:52

A combination of irresponisble lenders and irresponsible borrowers.

What irks me most is the response to just lower the interest rate. Those who over borrowed are laughing whilst those who are sensible and fixed rates are no better off and those with savings are just totally stuffed! Okay so thats a very large generalisation but I think its at the heart of the issue. There were and still are far too many people living off credit, shifting debt from here to there and still far too many people willing to lend them more money.

grrrrrrrrrrrrrrrrrrrrrrrrr lol

Xelene · 1 Jun 2011 at 13:03

I blame the Jews.

Xelene · 1 Jun 2011 at 13:04

(Not really)

tronath · 1 Jun 2011 at 13:07

banks

Vonhelmet · 1 Jun 2011 at 13:08

Your mum.

neoboy · 1 Jun 2011 at 13:09

The human condition.

The Funktopus · 1 Jun 2011 at 16:50

The Government, for allowing the economy to hurtle out of control through deregulation, the bankers for taking reckless risks in order to pursue ever more avaricious bonuses that would have made Midas blush, and the consumer's for taking on debts they knew full well they couldn't service.

Niju Rosu · 1 Jun 2011 at 17:09

Robert Peston