Are we all doomed?

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Well,that's it really...

Watching the news over the last few weeks and days I dont see that this economic crisis is anywhere near ending and no one seems to have any answers.

I feel a little nervous, as I doubt it will be the rich that bear the brunt.

"Rising house prices disproportionate to earnings driving up welfare payments (most on housing benefit have jobs but still cannot afford living expenses). The bubble took investment out real industry/business, people actively saying house price rises will mean their property will be their pension (ie not saving but relying on the next generation to pay for it by increased mortgage)."

Iggly - there is a theory that the pain we are feeling now is the economy re-balancing and adjusting. It's capitalism's 'creative-destructive' phase. Things of value remain, but over-inflated market bubbles [maybe housing] will be destroyed. As will companies, jobs and work practices that aren't truly valued. More importantly this destruction leads to increased creativity, opportunities and new ways of doing things.

I agree with cogito - the UK, broadly speaking, is in a relatively strong position - in the longer term, at least. But, IMO, the next five years will be tough.

iggly2: I think there was unrealism, at least to the extent that people became accustomed to the idea that we could sustain a larger welfare state than we can actually afford. I think that's why it feels so painful to roll it back - because parts of the population (especially those who have not directly experienced other levels) think that the 00s level is the norm. Older generations know it is not.

jackstarb:
good points on

"there is a theory that the pain we are feeling now is the economy re-balancing and adjusting. It's capitalism's 'creative-destructive' phase. Things of value remain, but over-inflated market bubbles [maybe housing] will be destroyed. As will companies, jobs and work practices that aren't truly valued. More importantly this destruction leads to increased creativity, opportunities and new ways of doing things."

Yep, I do think the housing crisis will hopefully be helped by this and become more in line with income etc for all society (few benefit from how they are).

"As will companies, jobs and work practices that aren't truly valued....." this may well be a lot of public sector roles (the current % is not sustainable).

"think that the 00s level is the norm".... A lot of the younger generation (at least among my friends) were looking at HORROR at the situation being stored up before the crisis. Wondering how they were ever going to get settled, get a house, family etc life markers (eg marriage , family) were being delayed. The cost was rising significantly for them pre crisis.

I really worry about the problems being stored up in a decade time with more strain on public services (this more than the current banking crisis, hich may well end up small in comparison). I think that a lot of those in their 20's-30's who can should emigrate (post research to check they are not moving to somewhere with a worse economic outlook longerterm).

I'm not at all convinced that the housing market will rebalance unfortunately. What seems to be happening, in the South East at least, is that those with money are looking on property as one of the safer investments amidst the turmoil, and of course are able to borrow at extremely low rates. So house prices are being buoyed up by investor cash even while being out of reach of those first time buyers who are relying solely on their salaries and what savings they can muster after paying their rents to said investors. I suspect we are gradually returning to a state in which property is largely inherited, with a great deal of it held by a few, and the majority never being able to contemplating owning their own houses.

As to the rest, I think it is going to get a lot worse before it gets any better.

CogitoErgoSometimes

The lack of people out on the streets and amount of debt people have in this country says otherwise IMO.

and look at the riots, the system works all those angry people venting in the direction of Footlocker instead of the Palace of Westminster, an excellent example of misdirection.

And I'd say the same about the bankers, "we are all in this together" splutters Cameron from his mile long dining table as he gorges himself on caviar, meanwhile the people blame the banks, when the real blame should be placed at the lack of regulation.

Thats what government's are for, control of population, without law and order the people run amok, self interest takes control and it's everyone for themselves. The same applies to poorly regulated businesses.

Doomed in the sense that we all die. But not in the sense that planet earth is on the way out.

"splutters Cameron from his mile long dining table as he gorges himself on caviar..."

Does the 'spluttering', caviar-gorging Cameron twirl his moustaches from behind his cape and top hat, perhaps? Lure maidens to his lair with offers of Madeira?...

Are the moustaches fake?, because as far as I know shape shifters can't grow them.