Aardvark

PSBR will shortly include PFI, which has been off balance sheet accounting. PSBR, just for the government to deliver the programme it is comitted to, will take us way over 40% of GDP. Darling will have to rewrite Brown's golden rule, which has been mooted. The idea that he can do this without the world's money markets taking note is absurd. The pound will reduce in value sharply, but might not appear so immediately as other trading currencies are weakened by the credit crunch. The reference points will be gold, oil and Swiss Francs.

BA are merging with Iberia to get economies of scale and to sack a lot of ground based staff. They are about to abolish cabin directors on long haul. That should be a warning. There will soon be a severely reduced demand for additional terminals and big ticket building projects will be cancelled. That could seriously effect the housing market in west London as unemployment increases.

My bets are still with 50% reductions in house prices. I watch the economic indicators every day and have seen nothing to suggest that things will pick up any time soon. Watch for the cut and run election before the economy goes into melt down.

__________________
When in Woking do as the Wokes do.

"I do not wish to form my opinions by thoughtlessly quoting others; I wish others to support their opinions by sensibly quoting me." Paul Wesson (Aardvark) 13th April 2008

brian pearson

When Brown was being hailed a 'man of iron', around this time last year I nearly put some money on him not seeing out the term. Can't remember the odds but they were good.

I think you are right. New leader, shock and awe....election. I wouldn't fancy the top job for the next few years!

Ea of Dune

Hopefully so, as this will put to bed Browns call for 3 million new homes and the raping of the English countryside. Which building firm is going to be stupid enough to try and build say 30,000 houses in Norwich which will come under flak from the public, then have trouble selling them as housing surrounding them has plumitted and jobs have vanished?

I think the up coming recession is going to be very painful, but I think we need it as a country. It will hopefully put the stake into the heart of the Labour vampire so they can no longer suck the wealth of the public away. It might pave the way to a serious shake up of how we do things and kill off the Guardian newspaper as well if we are lucky (I see the Tories plan to do that by stoping the ten of millions the Guardian gets in advertising public sector jobs, which is one of the few policies they have which are decent).

Ea of dune

brian pearson

Totally right. The recession/depression will achieve what no politician has the guts to do.

Painful but inevitable.

youcanhandlethetruth

With all due respect, I think that if you expect the global meltdown to improve under any of the main 3 parties, you may be mistaken.

I am not saying Brown isn't to blame - quite the opposite.

But in my opinion, the economic meltdown is an engineered crisis supported by all 3.

After all, the Bank of England is a privately run institution, and the politicans merely act on behalf of this institution, not the other way round.

__________________
Before tyranny and television, "conspiracy theorists" never existed.

cointelpro/halfwits(in order of Porkpies) Clippo,Wowbanger TIP,agni,Akria,Besoeker,Bear,Eurosceptic Antlantacist

Ea of Dune

YCHTT> Thats if the 3 main parties survive it.

The Tories will inherit a country is an economic mess. They are going to have to make some tough decisions as a party and are going to need a very steady pair of hands, if things get as bad as predicted.

If they are seen to be working against the people for private interest and things don't appear to be getting better well...... remember the poll tax riots?

I can't see people taking it. When I was last back home everyone I spoke to is totally hacked off with the situation. The people I spoke to who are voting Tory aren't voting because they like Cameron, far from it some cases, but more so they can give Labour a good kicking.

The next Tory government is going to be a weak government.

Ea of dune

Ea of Dune

The Beeb has an interesting article:

BBC NEWS | Business | America's house price time bomb

It looks like the banks are now being beaten at their own game. It seems there is a loop hole in US law that allows people who walk away from their mortgages to get away without paying the outstanding balance.

So whilst the bank can reclaim the home, they can't chase the home owner for the negative equity.
If people turn round and give the banks the finger and walk off there is a massive risk the banks are going to get screwed over by the public.

I wonder if the US gov will try and change the law to stem this?

Ea of dune

youcanhandlethetruth

But what you're forgetting is the privately owned federal reserve creates money out of thin air as credit.

Why would they want the money when they can simply create it at will for themselves ?

They are only interested in getting people into debt so that when a crash occurs and/or they can't afford to pay the debt, then they can consolidate the assets.

__________________
Before tyranny and television, "conspiracy theorists" never existed.

cointelpro/halfwits(in order of Porkpies) Clippo,Wowbanger TIP,agni,Akria,Besoeker,Bear,Eurosceptic Antlantacist

Ea of Dune

No I'm not forgetting how the Fed creates money, this has nothing to do with the fact people are walking away from the debt and can not be chased up for it.

Because people do not pay their mortgage repayments to the Fed reserve. Their Income tax goes to the Fed.
They pay the money back to private banks for example for mortgages. If the private banks get massive defaults then their profits will collapse.
Now the Fed reserve may try and bail out every bank that folds by printing money out of thin air, but this would be a reciepe for economic disaster and there is no reason to think that if things get worst Congress would reject a bill to bail them out.
Of course what may happen is that the default mortgages would cause massive damage to the profit margins of the banks but not actually fold them. This in turn would mean that many people have waked away scot free and left the big boys to carry the can!


The banks are interested in getting people into debt as that what keeps them in pocket. What we are discribing is people walking AWAY from the debt.
Literally saying, keep the bloody house I'm not paying you another cent.
The banks can't appear to do jack about it unless the law is changed.
If the bank lent you $400,000 and the house is now only worth $200,000 and the house owner has only paid back say $20,000 of their mortgage, they are in profit.
They have essentially rented a house for 2 or 3 years and cost the bank a couple of hundred grand.
Regardless if you think the market crash has been designed or not, the above would make absolutly no sense, for if you wish to enslave people with debt and then take their property, the above scenario is the opposite of what you want!

Walking away from the debt is BAD for the banks as this is how they make their money.

Ea of dune

Wowbanger TIP

If they can create money out of thin air why would they want to go to the considerable trouble of crashing the global economy just to get some thats already out there?

What is the point in "consolidating assets" by when they have been rendered useless because no-one can afford buy them? Assets are only assets when they can make money, owning all of downtown Mogadishu not particularly financially advantageous as compared to say the Duke of Bedford's property portfolio. Not to mention considerably less pleasant and less conducive to longevity.

It's very hard to see how the financial institutions we see nailed up on the cross in Wall Street stand to benefit from being wiped out of existence. Even more perplexing when we have been told for years that these are the driving force behind the NWO.