kittycat1

So it looks like the Uk is slipping back into recession, I know certainly for my trade its pretty bleak over there.

What are the general implications of a triple dip recession? Housing prices? exchange rates?

Any thoughts on how the economy can get going again?

mikewot

People got to wear undies, otherwise you're washing your trousers a lot.

kittycat1

lol yes but underwear is seen as a luxury item, so actually it's one of the first things people cut back on or buy cheaper on as its only them and maybe their partner that get to see it, compared to a fashion garment that is perceived as more value. Interestingly sales in sexy lingerie go up as more people have 'nights in' and will make purchases for the evening, so the likes of Ann Summers does well as well as maternity/pregnancy bras from the baby boom that follows.

Millhouse

a decent thread...

Triple dip means to me:

1) more Quatative Easing that does not go into the real economy but rushes to the already over-inflated stock exchange bubble.
2) further downward pressure on the exchange rate and credit rating.
3) house prices stagnate - I don't see them crashing sadly and nor do I see the cheap money rushing into the housing market to inflate the bubble again.
4) another large business hits the wall. If there is any justice in this world it will be Alan Sugar's but I suspect it will be Marks, Debenhams or John Lewis.
5) General wage erosion though inflation.
6) We'll go all out for Fracking. Energy independence is the only thing that can save us (same for the US)

I have no predictions for the real economy as I don't work in it, but I suspect we'll go all out on the currency war to boost exports of services and goods and try and inflate the debt away.

Millhouse

In times of recession, I go commando. You have to cut the corners somewhere and I've already stopped shaving to save on razors.

kittycat1

and how do you think the Uk can recover from this?

dare I ask what you've stopped shaving?

kittycat1

what's fracking?

kittycat1

and why wont the housing market crash? The way I see it is cost of living has gone up, most people have had pay freezes for the last couple of years so they have less money, most people have debt, with costs of living going up but salaries staying the same or being cut, surely it is only a matter of time til individuals miss payments and lose their homes. With no first time buyers as noone can borrow money surely properties will move into negative equity leading the market has to crash? Not that I want that as loosing your home is horrible but it makes for a good time for investment, but why do you think that is unlikely?

OriginalSunshine

pushing lots of sand and glue and water into a well (pipe) that is drilled several thousands metres into the ground, at very high pressure. the high pressure causes fractures in the rock. the fractures are designed not to grow bigger and bigger because you only do this to rock that has stronger layers above it. once you have fractured the rock any hydrocarbon gases that were trapped in the tiny pores of the rock release, and travel up the well to the surface.
the gas is gathered and transported through pipelines to fuel power stations and other energy consuming businesses.

mikewot

It's when a mummy and daddy really love each other and the daddies thingie gets all big and then he puts a tiny baby in the mummies tummy where it grows and then pops out.
Didn't they teach you anything at school?

kittycat1

I was behind the bike sheds so didn't learn much at all!

Millhouse

Did i say there would be a rush to Fracking?

http://www.guardian.co.uk/environmen...e-uk-shale-gas

And this is what it is:

http://www.bbc.co.uk/news/uk-14432401


I am 100% convinced that we will follow this aggressively and it is the only thing that can kick-start our economy. Cheap energy always gives economies a head start and we are running out.

Autonomy

Not to be all hippy and all that - but fracking sounds desperate. All this money sloshing through fingers but no real alternative than keep on digging and fracking.....

Beakersful

When fracking goes wrong, it screws the land. Companies state they carry out all safety procedures and they're good at what they do, but accidents happen (otherwise none of us would ever need car insurance)

At least they've gotten over the "fracking causes earthquakes" issue. It does, but just minor tremors that they don't think will result in major earthquakes.

Millhouse

it screws the water table. The next step will be desalination plants powered by cracked-gas.