Christopher S
New member
In 2006, blogs were discussing the house price crash, subprime lending and warning of bank collapses as well as the real possibility of global recession. The media were silent. Why?
You are using an out of date browser. It may not display this or other websites correctly.
You should upgrade or use an alternative browser.
You should upgrade or use an alternative browser.
Why did no one see the current financial crash coming?
- Thread starter Christopher S
- Start date
Exactamon ...........
People WERE warning about the crash. In fact it was obvious it was coming as its a part of the economic cycle in a free market economy.
This is why Gordon Brown as chancellor IS to blame. He should have been increasing interesting rates to cool an overheated market.
You also have morons like Phil Spencer and Kirsty Allsop who had everyone believing that house values would just endlessly go up by 20% year on year and that we had to jump on board quick.
And of course, the suckers that the English are, we fell for it, hence why our economy is in one of the worst states in the world.
People WERE warning about the crash. In fact it was obvious it was coming as its a part of the economic cycle in a free market economy.
This is why Gordon Brown as chancellor IS to blame. He should have been increasing interesting rates to cool an overheated market.
You also have morons like Phil Spencer and Kirsty Allsop who had everyone believing that house values would just endlessly go up by 20% year on year and that we had to jump on board quick.
And of course, the suckers that the English are, we fell for it, hence why our economy is in one of the worst states in the world.
Corneilius
New member
Because if it was announced then it would become a self fulfilling prophecy.
Imagine if the bank of England said 'Next year the bottom will fall out of the financial markets, shares will plummet and the government will have to step in to stop major banks from going bust'. the markets would have plunged and the bank of England would have been blamed for causing the crisis.
I'm not so sure that there was as much warning as you say, but any one with a reasonable amount of intelligence could see that the whole system was unsustainable. However greed is the primary driving force of those markets and it blinded many to the inevitable outcome.
You can still see the same driving force today, news reports continually focus on the recovery of the housing market as the main identification for the recovery of the economy. Greedy people still see excessively inflated property prices as a good thing.
Don't worry we will repeat the same mistake again.
Imagine if the bank of England said 'Next year the bottom will fall out of the financial markets, shares will plummet and the government will have to step in to stop major banks from going bust'. the markets would have plunged and the bank of England would have been blamed for causing the crisis.
I'm not so sure that there was as much warning as you say, but any one with a reasonable amount of intelligence could see that the whole system was unsustainable. However greed is the primary driving force of those markets and it blinded many to the inevitable outcome.
You can still see the same driving force today, news reports continually focus on the recovery of the housing market as the main identification for the recovery of the economy. Greedy people still see excessively inflated property prices as a good thing.
Don't worry we will repeat the same mistake again.