or to join or start a new Discussion

20 Comments
Article Rating 3 Stars

The economy: Sorry but help needed!

Hi all,

First of all I apologise sincerely for the unrelated nature of this article but I have just embarked on a University project to do with writing articles on the economy etc. and I would really appreciate your comments/opinions etc. on my first article.

Not everyone's cup of tea but if the state of the economic climate interests you then please go here and read the first (and only ) article.

www.callumldoherty.com

No offense intended and again, I apologise!

posted on 3/2/13

I know it was a statement from the leader of the opposition, so was naturally bias, but apparently this is the worst period of growth for 100 years now; rich coming from the party that did none too much to avoid it but still, staggering fact.

The credit bubble, for me, is simply a market that should have never been allowed to exist. Mortgages require checks for a reason, we have credit ratings for a reason - so when they opened this sub-prime credit trading on Wallstreet - yes, it was going to show profit, yes it was going to show growth but the myopic nature of it was completely unforgiveable.

An every day debt collector would know that, let alone multi-billion pound banks and multi-trillion pound Nations!

The technology thing is obviously speculation, very bold speculation and 100% unpredictable, it just opens the pathway to so many potential theories as to where we can go, if anywhere, and how.

comment by Admin1 (U1)

posted on 3/2/13

The credit bubble, for me, is simply a market that should have never been allowed to exist. Mortgages require checks for a reason, we have credit ratings for a reason
---------------------------------------------------

There is an irony in talking about "credit ratings". The rating agencies played a huge part in the down-turn by rating junk "BB, C" based derivatives as AAA. FYI A few years ago I help creation intra bank trading platforms for that stuff. Within three hours of putting it live £800million had been traded through the system

I am from the Ayn Rand school of markets and regulation. Regulatory agencies or rating agencies only ever give the illusion of protection and should not be revered or trusted.

posted on 3/2/13

That's very interesting and shall be taken on board, thank you!

You see, for me, that would raise the whole 'regulatory body' argument as, after disclosing that information, I can now see how those bodies would be culpable as much as the teller's that approved such credit, even more culpable.

Alas, regulation is an entity I have never really seen exceed expectations and only minimally meet them. It is needed, clearly, but in a properly structured environment.

The sad thing is, these trigger-happy lenders now won't lend to anyone who would have been AAA credit worthy, as you said, just a few years back which is only worsening the situation.

And when you think of it all like that, you can very much see why it is taking such a prolonged period to recover compared with history - because it isn't history at all.

comment by Admin1 (U1)

posted on 3/2/13

Yeah you will definitely love this book as it goes into the technical detail of turning junk in AAA

http://www.amazon.co.uk/The-Gods-That-Failed-Markets/dp/1847920306

You will love this book too albeit it is a heavy read.
http://www.amazon.com/Atlas-Shrugged-Ayn-Rand/dp/0451191145

Alan Greenspan was in her inner group of socialites, but you don't think about state market involvement in the same way again.

As well as reading Taleb's "The black swan" also read "The collapse of chaos" which goes into detail about chaotic and dynamic systems as well as the impact of trying to adjust them. Probably one of my favourite books.
http://www.amazon.co.uk/Collapse-Chaos-Discovering-Simplicity-Complex/dp/0140291253

I probably have another dozen books i would also recommend but those are definitely gems.

posted on 3/2/13

Thank you very much, I shall have a look at those!

Recently I've been reading The Big Short which is a little novelistic but a very good read nonetheless.

The book I've been spending the most time with at the moment is my economics class book which, ironically, is written by the lecturer himself...

comment by Admin1 (U1)

posted on 3/2/13

I can't recommend reading "off piste" as it will give you some kudos when it comes to written exams when you can name drop various economists and the books in which they state their views.

It is also worth reading about LTC(Long Term Capital) which was in investment fund run by two Nobel Prize winning economists that blew up spectacularly.

comment by Admin1 (U1)

posted on 3/2/13

I can't recommend reading "off piste" *enough

comment by I (U4566)

posted on 3/2/13

It's a bit naive (within the political science or economic disciplines) to blame any one individual, any particular national government or the events of any particular decade for any economic issues currently being experienced.

As for explanations, I would have thought the writings of Marx and Machiavelli are more than sufficient to outline what and why anything at any time has happened. And why nothing will be done to stop it continuing.

posted on 3/2/13

Freddos cost 65p nowadays. How is that sustainable Ffs.

comment by Admin1 (U1)

posted on 27/2/13

http://www.telegraph.co.uk/finance/economics/9897571/Britain-never-had-a-double-dip-recession-says-top-economist-Simon-Ward.html

Sign in if you want to comment
RATE THIS ARTICLE
Rate Breakdown
5
1 Vote
4
0 Votes
3
0 Votes
2
0 Votes
1
1 Vote

Average Rating: 3 from 2 votes

ARTICLE STATS
Day
Article RankingNot Ranked
Article ViewsNot Available
Average Time(mins)Not Available
Total Time(mins)Not Available
Month
Article RankingNot Ranked
Article ViewsNot Available
Average Time(mins)Not Available
Total Time(mins)Not Available
Do Not Sell My Personal Information