Cable Forum - [MERGED] World Economy

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Re: Is reccession in America about to start?

'railway electrification'

Is that a new term for 'death row'. :D

Re: Is reccession in America about to start?

Quote:

Is that a new term for 'death row'.

Can you, hand on heart, say that if they took off the myriad warning signs about 25kV AC electric wires, the kind of person who would go 'that's all right then' and go for a swing on them would be missed? Death Row for muppets, perhaps, but evolution abhors a muppet.

Re: Is reccession in America about to start?

Quote:

Originally Posted by Paul (Post 34474815)

Apart from all the house owners who have recently purchased their property and who will face losing everything they own. .

:confused: They will only lose it if they stop making the payments. The collapse in price doesnt stop them making the payments. Most people that move house these days have made profits on the previous houses so its only a pricing correction.

The only people that its a concern for are new buyers who default

---------- Post added at 12:32 ---------- Previous post was at 12:29 ----------

Quote:

Originally Posted by Russ B (Post 34474863)

What about us people who have no chance of getting on the property ladder

I was 10 years younger than you are now when i got on to the property ladder. Was a hard decision (NOT), did i want the millstone or did i want to rent for life.

Re: Is reccession in America about to start?

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Originally Posted by Wicked_and_Crazy (Post 34476578)

Default risk is higher for new buyers, especially those who are on mortgages with introductory rates. If wages stagenate and borrowing facilites are tightened then moving it to a good rate in x years time will be tougher and at that point the default risk may increase significantly. This is the biggest problem in the US, people buying 4000 ft homes because they could afford the initial repayments and being advised they could remortgage (refinance) when the introductory part was up only to find now a big lack of refinancing options.

Quote:

Originally Posted by Wicked_and_Crazy (Post 34476578)

I was 10 years younger than you are now when i got on to the property ladder. Was a hard decision (NOT), did i want the millstone or did i want to rent for life.

Right now is the first time I have not had a mortgage (because I don't own any property, not because I am mortgage free) since i was 21. I'm kinda feeling my timing was not far from perfect.

[MERGED] World Economy

Quote:

Originally Posted by BBC

Asian stocks have risen sharply, with investors cheered by a White House plan to spend $150bn (Ãƒâ€šÃ‚Â£76bn) to revive the flagging US economy. With millions of US consumers due to get tax rebates, the hope is that a US recession will be prevented and so demand for Asian goods will not slow.

http://news.bbc.co.uk/2/hi/business/7208316.stm

Anyone want to break down how this might actually work, for me? Having a little problem fully understanding this :S

Re: Is reccession in America about to start?

Quote:

Originally Posted by BBKing (Post 34475247)

The US Federal Reserve has cut interest rates a colossal 0.75%, biggest cut since 1982. Seriously big. One problem with this is the Monty Python Messiah Theory - if there's nothing to worry about ('I'm not the Messiah') why are you panic cutting interest rates ('Only the true Messiah denies his divinity')? Could have the opposite effect, but it will also drop the dollar right in the doo-dah, and thus reduce relative oil prices. On that note, it increases the incentive for oil nations to move to the nice, stable Euro, where you only have to deal with Sarkozy'n'Merkel, not the fag-end of the Bush disaster.

According to what I've just heard on the BBC financial news it seems that the timing and magnitude of the huge US rate cut could well have been in large part due to the serious fallout from the Soc Gen debacle. It appears the French and European authorities didn't think it at all necessary to let the Federal Reserve know about the problem and the Fed may have panicked just a tad....

Re: [MERGED] World Economy

Quote:

Originally Posted by Druchii (Post 34476999)

http://news.bbc.co.uk/2/hi/business/7208316.stm

Anyone want to break down how this might actually work, for me? Having a little problem fully understanding this :S

If public spending increases, profits go up, businesses grow, employment goes up. Happy Economy for all!

Thats how I understand it