Old Oct 27, 08, 4:35 am
  #13  
aristoph
 
Join Date: Mar 2004
Location: London, UK
Posts: 4,612
Originally Posted by chris18london View Post
If people were encouraged to carry on spending instead of cutting back, it might maybe even turn the corner. The City and the Media relish the drama too much for that, which is low.
Hilarious. Let's see how you feel in 12 months time when unemployment has increased by at least 1 million and house prices are down a further 20%. Spending our way out of this is not an option. The banks will not be going back to leveraging their balance sheets 30-50 times, no matter how much capital we pump into them. Consumers cannot continue to spend beyond their income indefinitely. Government cannot bail us out when it has already run up large deficits during the good times. The correction is inevitable and painful but ultimately a good thing. It cannot be avoided by not talking about it!
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