Ladies and Gents, we have a credit crunch

[AndrewT]

Another question.

We're told that 'economic growth' is so important, and everyone is happy when the country's economy grows by 3% or whatever. What is this growth measured against? The US economy is said to drive the world economy, and a crunch there will lead to a drop in 'global economic growth'. WTF is 'global economic growth'? Growing compared to which other economies? Surely it's a closed system (unless we have some sort of secret trade surplus with Mars)?

[kinboshi]

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

Growth is the opposite to recession.

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

Happy reading...

[TheChipPrince]

Enough of this legal mumbo jumbo, am i ever going to be able to afford a house or not?

Not unless you have a huge deposit and earn loads.

Oh thx Graham, dream killer...

You can always get 6 times your salary and get one though, you'll just have to eat value baked beans as your staple diet

Baked beans and staples, jeez, think i'll stay clear of the silo diet...

[Robert HM]

Enough of this legal mumbo jumbo, am i ever going to be able to afford a house or not?

Not unless you have a huge deposit and earn loads.

Oh thx Graham, dream killer...

You can always get 6 times your salary and get one though, you'll just have to eat value baked beans as your staple diet

Baked beans and staples, jeez, think i'll stay clear of the silo diet...

Well you certainly won't be wanting to stand behind him!

[TightEnd]

Another question.

We're told that 'economic growth' is so important, and everyone is happy when the country's economy grows by 3% or whatever. What is this growth measured against? The US economy is said to drive the world economy, and a crunch there will lead to a drop in 'global economic growth'. WTF is 'global economic growth'? Growing compared to which other economies? Surely it's a closed system (unless we have some sort of secret trade surplus with Mars)?

this post arouses me.

Team Hardon has a new member

[kinboshi]

Enough of this legal mumbo jumbo, am i ever going to be able to afford a house or not?

Not unless you have a huge deposit and earn loads.

Oh thx Graham, dream killer...

You can always get 6 times your salary and get one though, you'll just have to eat value baked beans as your staple diet

Baked beans and staples, jeez, think i'll stay clear of the silo diet...

Plenty of iron though, so no chance of anaemia.  Visits to the loo wouldn't be too pleasant though... 

[kinboshi]

Another question.

We're told that 'economic growth' is so important, and everyone is happy when the country's economy grows by 3% or whatever. What is this growth measured against? The US economy is said to drive the world economy, and a crunch there will lead to a drop in 'global economic growth'. WTF is 'global economic growth'? Growing compared to which other economies? Surely it's a closed system (unless we have some sort of secret trade surplus with Mars)?

this post arouses me.

Team Hardon has a new member

[Graham C]

Enough of this legal mumbo jumbo, am i ever going to be able to afford a house or not?

Not unless you have a huge deposit and earn loads.

Oh thx Graham, dream killer...

You can always get 6 times your salary and get one though, you'll just have to eat value baked beans as your staple diet

Baked beans and staples, jeez, think i'll stay clear of the silo diet...

Well you certainly won't be wanting to stand behind him!

I have a house, I don't need to eat the staple part of it, just the beans. 

It's all natural though

[Tonji]

I've always understood global finance is underpinned by confidence, rarely bare financial facts. Thus the problems in the  sub prime market in the US, where the full extent of the debt is not yet known, has created a severe lack of confidence. Without the intervention of the Fed Res etc, we would of had a "Run On The Banks", resulting in a global depression. Hugely worrying that a lack of confidence in a small sector of finance in the US, can reverberate World Wide with possibly devastating effect.

[AndrewT]

I've always understood global finance is underpinned by confidence, rarely bare financial facts. Thus the problems in the  sub prime market in the US, where the full extent of the debt is not yet known, has created a severe lack of confidence. Without the intervention of the Fed Res etc, we would of had a "Run On The Banks", resulting in a global depression. Hugely worrying that a lack of confidence in a small sector of finance in the US, can reverberate World Wide with possibly devastating effect.

See, one big pyramid scheme.

And none of us are at the top of it.

[Claw75]

Another question.

We're told that 'economic growth' is so important, and everyone is happy when the country's economy grows by 3% or whatever. What is this growth measured against? The US economy is said to drive the world economy, and a crunch there will lead to a drop in 'global economic growth'. WTF is 'global economic growth'? Growing compared to which other economies? Surely it's a closed system (unless we have some sort of secret trade surplus with Mars)?

this post arouses me.

Team Hardon has a new member

yes - that's just put me off my sandwich!

[kinboshi]

Another question.

We're told that 'economic growth' is so important, and everyone is happy when the country's economy grows by 3% or whatever. What is this growth measured against? The US economy is said to drive the world economy, and a crunch there will lead to a drop in 'global economic growth'. WTF is 'global economic growth'? Growing compared to which other economies? Surely it's a closed system (unless we have some sort of secret trade surplus with Mars)?

this post arouses me.

Team Hardon has a new member

yes - that's just put me off my sandwich!

What's in it?  I was just about to get one and if you don't want yours...

[Claw75]

Another question.

We're told that 'economic growth' is so important, and everyone is happy when the country's economy grows by 3% or whatever. What is this growth measured against? The US economy is said to drive the world economy, and a crunch there will lead to a drop in 'global economic growth'. WTF is 'global economic growth'? Growing compared to which other economies? Surely it's a closed system (unless we have some sort of secret trade surplus with Mars)?

this post arouses me.

Team Hardon has a new member

yes - that's just put me off my sandwich!

What's in it?  I was just about to get one and if you don't want yours...

....I'm not saying it....

[tikay]

I've always understood global finance is underpinned by confidence, rarely bare financial facts. Thus the problems in the  sub prime market in the US, where the full extent of the debt is not yet known, has created a severe lack of confidence. Without the intervention of the Fed Res etc, we would of had a "Run On The Banks", resulting in a global depression. Hugely worrying that a lack of confidence in a small sector of finance in the US, can reverberate World Wide with possibly devastating effect.

See, one big pyramid scheme.

And none of us are at the top of it.

Andrew, think glass half-full, not half-empty.

If the Nikkei or Dow Jones drops overnight, my Shares in Severn Trent or St Modwen Properties or BT or BA will drop immediately. They WILL. Why? Smoke & mirrors, confidence, whatever, it mattters not. In truth, the earning value of each of those companies is wholly unchanged from yesterday, yet the company's value has dropped, as has the value of my Shares. Bloody unfair, eh?

But, conversely......

If the Nikkie & both rise steeply tonight, my Shares will all suddenly be worth a lot more.

We can't have it both ways. Well, in fact, we can......

The money markets move in mysterious ways.

Northern Rock is safe as...err, houses? Seriously, it's a technicality. Forget it, it will be forgotten about within a few days.

[tikay]

And another thing Andrew. Stop asking daft questions. The Emperor, who, I can assure you, IS dressed in a lovely new suit, does not approve.