To be concerned? Govt announcing economy likely to be in worse state than in 2008 crash

[TheCatsPyjamas1]

Just saw a couple of articles where Liz Truss has said the economy is now going to be worse off than it was during the 2008 crash.

On one hand, I know I’m not going to solve anything by worrying, and obviously I can’t do anything specific to help, apart from just budget and save as much as poss.

On the other hand, the situation we’re going into with the economy is making me pretty nervous, because it feels so unknown and quite scary.

Can anyone offer any reassurance or general thoughts?

I can not make it go away, but maybe this reassurance will help a bit: let's plant an apple tree. Not a real one but just tend to your life and the lives of your loved ones and your community and create good things, with hope.

There's always ups and downs in life, most of us have survived the 2008 crash (and WAY worse things) we have to be strong now.

It’s already in a FAR worse state than that!

The problem is Truss is not helping, we need rid of this government, get some normal politics back to at least calm it down.

I have no reassurance beyond platitudes.

I take it you weren't around in the 1980s OP? Welcome back to the 1980s.

(Patiently waiting for someone who remembers the 1970s to tell me it was much, much worse then).

The 2008 crash was not a crash. It was a minor stumble that never became a crash due to the government bailing out banks and the interest rates being dropped to near zero.

Now they have no money to bail anybody out and no real ability to reduce interest rates.

I think 2008 will be a champagne picnic compared to 2023.

I didn’t even notice the 2008 crash. Vaguely remember news items but didn’t really register on my list of worries at that time. This one, or this potential for similar/worse, has affected me significantly already. So at the risk of sounding like it’s all about me! I think it’s already worse.

When you think about the spending over three massive events - 08 pause then Covid and Ukraine it’s not doable.

Just the inability to stop pumping all the money out. No one cared. Depressing

Yep, afraid to say - 2008 was nothing compared to what is coming. I’m not glorifying in that btw - I stupidly did some home improvements this year and now looks like it would have been significantly more sensible to have the cash in the bank😬🙈. But, @MissSouri gives a nice way of looking at options… I’ll try to stick her words in my brain rather than the sheer panic currently there!!

Thanks @MissSouri I do find it helpful in times like these to try and stay hopeful, although it is tricky at points - thanks for your post.

@HorribleHerstory so sorry to hear this. I hope you’re okay ❤️

I’m feeling worried about how much worse it could get, and what the worst case scenario would be, and as much as I try to get my head around the economics of it all, I really can’t.

Any links to the articles or just scaremongering?

"scaremongering'

Who knows. I lost my job in 2008.

Can anyone offer any reassurance or general thoughts?

Nope.

We actually never recovered from 08 & never felt the full force of it because the gov/BOE stepped in. They kicked the can down the road & now there's no road
left.

I assume they are saying that they cannot cut the interest rates so affording mortgages is going to be an issue, & potentially hit jobs.

I'm the same, 2008 was pretty much like a lot of other years.

The 80s were really, really difficult for us.

2023 should be, directly for myself, survivable but I may be stretched more than I'd wish to assist family members should they need it.

It all really depends where you 'are' in life, and how secure your job is, when these crises hit as to how you perceive them i.e. which was worst.

Looking at this graph 2008 was worse than anything in the 70's or 80's in terms of fall in GDP. Unfortunately I think this going to be worse again with job loses and repossessions. It's going to be more like 1929.

Sorry graph

Graph

The govt didn't step in properly though - Labour would have invested in the way Germany etc did but the Tories got in and started austerity which deepened the impact.

A lot of why we were already in such a state before COVID goes back to that low investment, low growth period of Tory policies.

2008 was bad, because of the fear that we would have massive numbers of mortgage failures. It didn't happen because the lenders had learnt from the 1990s when they were too quick to reprocess.
1980s were bad but we didn't h have the hunger of the 1930s because of the welfare state.
today we have low unemployment but a problem because of a short term issue 're energy costs (we need to force up gas supplies) and the long term benefit of concentrating government into seeking long term replacement for oil and gas.
we will get through this, it will be difficult for a year or so but things will improve and outstrip where we were pre covid. History proved this

@lannistunut I agree, I meant in terms of emergency low interest rates/QE. Personally I don't think that should have carried on for long, it lead to huge asset inflation of houses, people putting money into property rather than savings, low wages. And yes absolutely no investment which i& low productivity.

we will get through this, it will be difficult for a year or so but things will improve and outstrip where we were pre covid. History proved this

Do you think inflation is a blip? I'm not so sure particularly with the ageing demographic in so many countries.