For any economists out there.
I've just heard on the news that a think tank suggests it may be 5 years before the country enjoys the same standard of living it had pre-recession.
Does this same standard of living carry the same burden of debt ?
The British economy
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On Friday 23 January 2009, the Office for National Statistics produced the figures confirming what everyone knew: that the UK economy was in technical recession, defined as two consecutive quarters of negative growth.
For the last three months of 2008, gross domestic product slid by 1.5 per cent (worse than the 1.2 per cent expected), compounding the 0.6 per cent fall that had already been registered in the third quarter of the year.
So how bad and how long is the recession going to be?
The banks still aren
For the last three months of 2008, gross domestic product slid by 1.5 per cent (worse than the 1.2 per cent expected), compounding the 0.6 per cent fall that had already been registered in the third quarter of the year.
So how bad and how long is the recession going to be?
The banks still aren
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I have no knowledge of the British economy but you could say the same thing about the American economy. The difference is we, my part of the country, has been in a recession for the past 2 years and we aren't predicted to get out until, at least, another 2 years. Then it will take between 5 and 10 years to get things up and running again. However, I doubt consumer spending will go back to pre-recession numbers for at least 30 years. Why? Most Americans were spending more than they made before things "went south". Now, we are starting to save again just like after the "great depression". It will take a new generation to ignore their incomes and spend, spend, spend as we used to about 2 years ago. 
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We (as in my family) have been pretty lucky so far.
Many people in the Netherlands lost their jobs and have to sell their houses, but we are still doing ok, no noticable changes for us personally.
Ofcourse that could change in a second.
If my husband would loose his job we would be in deep [censored]...
And all the predictions we hear on the news, I don't know about that, every month there is another prediction, so basically what "they" are saying is that it is difficult to foresee how long it will really take for the economy to get back on its feet again.
Also the situation in other countries effects us as well, so if one country starts climbing up, other countries would most likely do the same.
Many people in the Netherlands lost their jobs and have to sell their houses, but we are still doing ok, no noticable changes for us personally.
Ofcourse that could change in a second.
If my husband would loose his job we would be in deep [censored]...
And all the predictions we hear on the news, I don't know about that, every month there is another prediction, so basically what "they" are saying is that it is difficult to foresee how long it will really take for the economy to get back on its feet again.
Also the situation in other countries effects us as well, so if one country starts climbing up, other countries would most likely do the same.
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On my opinion only the f.ools won't predicted this.
All this situation came from contries outside of the Euro area (the Euro area has better economics regulators-European Central Bank and his subordinates, each country central bank). We can't forget the US finantial lobbies that since the 90's tried to destroy the majority of rules that regulates the market, cause they claim that only the market should regulate himself thru the rules of supply and demand and no state or institution should regulate it. It would work, if there ain't so many greed guy's or people that try to show better results than the real ones (like buying a huge pile of coins and selling them) due to share options and so on...
Probably it won't take too many time (another generation), but it can take something between 5 to 10 years till people forget (we forgot the 80's and the 90's), and besides that, the consumption of the families is the motor of the economies, and if the people don't consume -> companies don't sell their products -> companies close -> people get fired -> people don't have money to consume, so this is a vicious cycle and the reason why some major people like Jean-Claude Trichet - European Central Bank chairman - have said that the finantial crisis is ended (he forgot the economic one) and everything is starting to run again smoothly, to give to the markets and consumers a good signal.
All this situation came from contries outside of the Euro area (the Euro area has better economics regulators-European Central Bank and his subordinates, each country central bank). We can't forget the US finantial lobbies that since the 90's tried to destroy the majority of rules that regulates the market, cause they claim that only the market should regulate himself thru the rules of supply and demand and no state or institution should regulate it. It would work, if there ain't so many greed guy's or people that try to show better results than the real ones (like buying a huge pile of coins and selling them) due to share options and so on...
Probably it won't take too many time (another generation), but it can take something between 5 to 10 years till people forget (we forgot the 80's and the 90's), and besides that, the consumption of the families is the motor of the economies, and if the people don't consume -> companies don't sell their products -> companies close -> people get fired -> people don't have money to consume, so this is a vicious cycle and the reason why some major people like Jean-Claude Trichet - European Central Bank chairman - have said that the finantial crisis is ended (he forgot the economic one) and everything is starting to run again smoothly, to give to the markets and consumers a good signal.
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