Carrying on from below on the subject of recession. I just read an article in The Independent where it was reported that Mr Bloody Darling said this, amongst other things:
Chancellor Alistair Darling said that the UK would weather the storm, and stressed that the whole globe was enduring problems from the credit crunch and a spike in oil prices. “That will mean that the economy, like every other country in the world, will move towards recession,” he said.
More beating around the bush, this time from the Chancellor of the Exchequer himself. What does that mean – “will move towards” – ? When are people going to just hold their hands up and say “Ladies & Gentlemen, I have pleasure in announcing Lord and Lady Recession.”?
What about this from the same article:
Shares in London and New York plummeted ever further this afternoon amid growing fears about not only whether there would be a recession, but how deep it would bite.
“Whether there would be a recession”. HELLO!!! EARTH TO SHARES PEOPLE – WAKE THE FRIG UP PLEASE!!!
“How deep it would bite”. Oh, come on! Now you’re really starting to take the pi**. What comes next then, “How long it will last” and “What colour underpants it will be wearing”?
Read my lips – THERE IS A RECESSION. IT WILL NOT BE A NICE ONE. IT WILL BE AT LEAST AS BAD AS THE EARLY 90’S. IT WILL PROBABLY LAST ABOUT 2 YEARS. BAD SHIT WILL HAPPEN TO SOME, OTHERS WILL DO VERY NICELY THANK YOU. THE EARTH WILL NOT IMPLODE. PEOPLE WILL STILL DO MOST OF THE NORMAL THINGS THEY ALWAYS DO. Now, for your homework over the weekend, I want to all to go away and work out what the correct share price should be for all companies under this scenario. Come back to work on Monday, adjust the prices and then STOP MESSING AROUND!!! Thank you. Nobody really needs this Chinese water torture approach, you’re big boys, you’ve all got calculators and you’re all paid plenty of money to be good at this stuff so do what you’re bloody well paid for.
And what’s this nonsense with oil prices, eh? They rocket up from, what, $60-80 a barrel where they had been resting peacefully for quite some time causing nobody too much harm to over $140, seemingly with a will of their own not listening to what anyone was saying to them. “Now look you oil barrels, this kind of behaviour just won’t do!”. A few travel companies bite the dirt, others complain, but no apparent global catastrophe. Now the prices have plummeted, to use an in vogue term, as far as I know roughly back to where they were and still people aren’t happy. For heaven’s sake, it is even being blamed for an impending crusty-plum in Iran –
As the effect of those lower oil prices works through, Iran will face a growing budget deficit. The International Monetary Fund said in August that Iran would face unsustainable deficits should prices for its oil fall below $75 a barrel.
Unless the price of Iranian oil has followed a very different trajectory to that of other oil in the world – what the hell have the Iranians been up to? The price of oil goes up, stupidly up, so they rush out and spend trillions on new Bentleys. Then the price goes back to a sensible level and suddenly the country is screwed?
A lot of things just don’t make sense.