The Recession

Started by The Claw, June 24, 2008, 09:46:02 AM

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thejuice

https://www.cnbc.com/2020/03/15/federal-reserve-cuts-rates-to-zero-and-launches-massive-700-billion-quantitative-easing-program.html

Key piece of information here. Many Banks in America are no longer required to hold anything in reserve to lend money. Fractional reserve banking has effectively ended for these banks. They can lend out money they simply don't have in the hope the federal reserve can give it to them. This obviously is being done so that banks can get money out to people as quickly as they can during the Coronavirus shut down. However the fed has been doing overnight lending to banks back in September 2019 which suggests that banks were already having trouble retaining reserves months before this crisis emerged. It would seem that this crisis is going to be used to fundamentally change the financial system in some way because I can easily see this leading to hyper inflation and complete systemic failure.
It won't be the next manager but the one after that Meath will become competitive again - MO'D 2016

larryin89

Socialism the only way forward , capitalism is not sustainable anymore
Walk-in down mchale rd , sun out, summers day , game day . That's all .

Tony Baloney

Quote from: larryin89 on March 22, 2020, 01:01:00 AM
Socialism the only way forward , capitalism is not sustainable anymore
Lol.

thejuice

I don't think socialism is necessarily a solution given it can be as easily corrupted as capitalism. There needs to be another way that harnesses aspects of both. Either or isn't going to work.
It won't be the next manager but the one after that Meath will become competitive again - MO'D 2016

RedHand88

Quote from: larryin89 on March 22, 2020, 01:01:00 AM
Socialism the only way forward , capitalism is not sustainable anymore

If socialism worked, it would have worked.

Milltown Row2

If and it's a big IF, if this virus takes a hold for over a year, a recession is the least of our worries.
None of us are getting out of here alive, so please stop treating yourself like an after thought. Ea

imtommygunn

I would say it is more a depression than a recession :(

seafoid

140,000 unemployed in.one week is shocking
"f**k it, just score"- Donaghy   https://www.youtube.com/watch?v=IbxG2WwVRjU

larryin89

Quote from: seafoid on March 22, 2020, 10:17:47 AM
140,000 unemployed in.one week is shocking

Some estimates as high as 700k by weeks 4-6 . But I have to say listening to all the various commentary in media , I'd be hopeful it won't be a long term set back ala 2008 . Just to add to my socialism point, The juice makes a valid point of mixing it up a bit . I've asked several people over the last few days for example would it be a better country if we paid a lot more PAYE for better quality services provided by the state , everyone I asked said yes .
Walk-in down mchale rd , sun out, summers day , game day . That's all .

marty34

Quote from: larryin89 on March 22, 2020, 11:33:03 AM
Quote from: seafoid on March 22, 2020, 10:17:47 AM
140,000 unemployed in.one week is shocking

Some estimates as high as 700k by weeks 4-6 . But I have to say listening to all the various commentary in media , I'd be hopeful it won't be a long term set back ala 2008 . Just to add to my socialism point, The juice makes a valid point of mixing it up a bit . I've asked several people over the last few days for example would it be a better country if we paid a lot more PAYE for better quality services provided by the state , everyone I asked said yes .

I'd say they'll obviously say yes after what is happenly recently. 

Ask 6 months ago, you might get a different answer.

Dag Dog

Quote from: larryin89 on March 22, 2020, 11:33:03 AM
Quote from: seafoid on March 22, 2020, 10:17:47 AM
140,000 unemployed in.one week is shocking

Some estimates as high as 700k by weeks 4-6 . But I have to say listening to all the various commentary in media , I'd be hopeful it won't be a long term set back ala 2008 . Just to add to my socialism point, The juice makes a valid point of mixing it up a bit . I've asked several people over the last few days for example would it be a better country if we paid a lot more PAYE for better quality services provided by the state , everyone I asked said yes .
We pay a lot already for services that we don't get.
Where does the 18 billion that gets pumped into the health service disappear to?
We have a young population and compared to other countries we put a lot of money into health, yet the service is very poor.

Milltown Row2

Quote from: Dag Dog on March 22, 2020, 12:23:10 PM
Quote from: larryin89 on March 22, 2020, 11:33:03 AM
Quote from: seafoid on March 22, 2020, 10:17:47 AM
140,000 unemployed in.one week is shocking

Some estimates as high as 700k by weeks 4-6 . But I have to say listening to all the various commentary in media , I'd be hopeful it won't be a long term set back ala 2008 . Just to add to my socialism point, The juice makes a valid point of mixing it up a bit . I've asked several people over the last few days for example would it be a better country if we paid a lot more PAYE for better quality services provided by the state , everyone I asked said yes .
We pay a lot already for services that we don't get.
Where does the 18 billion that gets pumped into the health service disappear to?
We have a young population and compared to other countries we put a lot of money into health, yet the service is very poor.

I get hammered every month on tax, I pay plenty. I might if how things pan out here get some proper rebate if I ended up getting £2500 a month from the government
None of us are getting out of here alive, so please stop treating yourself like an after thought. Ea

illdecide

I closed my shop on Friday night with 12 staff with no job, most of them were part time in fairness but still was sad. Just hope this Government promise is all it's made out to be so i can pay them at least something...
I can swim a little but i can't fly an inch

thejuice

Quote from: Milltown Row2 on March 22, 2020, 08:28:19 AM
If and it's a big IF, if this virus takes a hold for over a year, a recession is the least of our worries.

I think the economy and pandemic are inseparable at the minute. If we don't have some sort of functioning world economy we won't get through this. If one spirals out of control so will the other.
It won't be the next manager but the one after that Meath will become competitive again - MO'D 2016

larryin89

Italy 59 k cases 5476 deaths .

USA 39k cases 396 deaths .

I still don't understand why Italy's ratio is soo off the scale .
Walk-in down mchale rd , sun out, summers day , game day . That's all .