Originally Posted by spinnaker
I find that a hard one. No one really knows the full extent of the debt or how risky it is. To say the fed could make on it, imho is highly speculative as we don't even know how the fed plan will work as yet.
I can't recall which paper the article was in but it was one of the broadsheets (not that that means much these days). The way it was written certainly seemed plausible though. The premiss was if Cletus and Mary-Lou et al defaulted on their loans the FED would end up with the deeds to the properties which in the long term would eventually increase in value and could be sold in bundles to speculators for a profit. In theory the FED should be able to afford to tie up large sums of money for longer periods of time than investment banks.
Originally Posted by spinnaker
The record increase in the FTSE on Friday may be a mixed blessing, the correction may have been overcooked. I also take it as an indicator of how deep the UK financial sector is involved with high risk investments. Still, good news to see the FTSE going back up.
I know this isn't directed to me but I don't have much confidence in the stock market any more, imo it shouldn't need constant intervention from governments, at some point they are going run out of ways to stop it crashing, maybe it's reached that point already, may be it will happen next year, maybe it wont even happen in my life time. I think it needs some sort of regulation to control the level of risk taking that goes on and i'd definitely like to see the rewards of risk taking cut considerably. Greed isn't good imo it just makes people miserable.
Originally Posted by WWW
Your savings will be safe. Ravaged by eye watering inflation. But safe.
Baring things like mortgage repayments, energy prices, fuel and public transport I don't think we've seen a big rise in the cost of living over the past 15-20 years. Supermarkets have driven the cost of food down, air travel is cheaper, package holidays seem about the same, the basic model cars haven't gone up that much and neither has the cost of parts (if anything they've gone down). TV's, Stereos, DVDs (taken as a modern equivalent of the old VCR), white goods and (unbranded) clothing have come down in price. It's mainly the cost of fuel and housing that's been the killer imo. (oh and peoples expectations don't help either, stuff that was considered a luxury 20-30 years ago is often considered to be a necessity now). I think we can withstand a a certain amount of inflation.
Originally Posted by WWW
The forum can afford one thread discussing the macroeconomic turbulence being experienced by Western world. If it doesn't interest you or you think it doesn't help you then - radical idea - don't read it. Go start your own thread on 100 Top Tips To Get A First Job with my absolute blessing.
After all, this a thread about the upturn in the aviation industry which is ultimately reliant on the up turn in the economy, in the absence of any signs of upturn in the aviation industry, why shouldn't we be discussing the economy ? Anyway, it seems like the girls have had their paddies now, stomped their feet and walked off to discuss what they consider to be more important matters. (didn't some airlines used to ask questions on current economics or at least questions linked to economics in the interview at one time ?)
Personally I think WWWs predictions are completely rational and worryingly accurate, I wish i'd had his advice several years ago+. It's clear to me who here will go the distance and who will burn out in the absense of any recruitment over the next few years and I wish them the best of luck!.