29th November 2010
vin19 comments: "It's a pittance,most of the Worlds individual Billionaires have that much each! "If I ever go across the sea to Ireland,then maybe at the closing of the day !!"
Duxtungstu writes: "Robert – I imagine you must have a keen sense of humour. It would be handy on these sorts of occasions. The 'rescue' package. Have you ever felt the weight of one of those old style lifebuoy rings? The sort that weigh a good few kilos? When deployed you have to avoid hitting the person you are aiming to rescue otherwise they may be badly injured and drown as a consequence. 20% of tax revenues by 2014. Raiding the sovereign wealth fund. Good luck. Next!"
Jo thinks: "Not gonna stick folks."
Anonymous 1 says: "This crisis teaches governments and Bank's anything is to not be so beholden of the bond markets. On the whole Bond holders are extremely risk adverse and it doesn't take much to turn a little bit of bad sentiment into a self-fullfilling crisis of confidence. Bail outs are one way to restore confidence, but ultimately these countries (UK included) need to sort out their finances."
bedfordfalls comments: "Couldn't agree more with Mark Hart. The Chinese economy has been jerry-built in the mad rush for growth. It is totally dependent on ever-increasing demand from Western economies for the output of its factories. When this fails to materialise – as it clearly must – the bubble will burst and a terrifying reverse multiplier effect will kick in, bringing the house of cards crashing down. At this point we will have to be careful, for the hardline communists who form the Chinese dictatorship will try to distract the attention of the people from their economic misery and disappointed expectations with a foreign adventure."
but about how "China needs to make the next transition, from sweatshop economy to innovation economy" if they want their economy to create the ‘supercycle' that is being suggested in The Guardian
FuriousThomas thinks: "Surely this isn't weakening the market but strengthening it. As prices come down more people will be able to afford to buy, thus more homes will get sold. only when prices come down to affordable levels will the market be strong again."
49niner says: "The idea that old national currencies will be restored is fantasy. Just think of the logistics alone. Any country that bails out now faces even worse problems if it attempts to go on its own. This crisis will concentrate minds and will finally force the countries who have not shown sufficient fiscal discipline to get their act together. The EU is very good at solving crises like this having had over 50 years of practice. The euro will survive. As far as Britain is concerned, people in glasshouses shouldn't throw stones. It's a good thing we didn't join the euro. We don't have the discipline or the bottle for acting in cooperation with other countries. Looking back to the ERM debacle in 1990-92 we arrogantly overvalued our currency relative to the DM and paid the price. The euro will survive because there really isn't any realistic alternative for its members states."