UK economy 'skating on thin ice'

[wendigo100]

UK economy 'skating on thin ice'

An influential forecast group is worried about the risks individuals, firms and ministers are taking with amounts borrowed. Ernst & Young's Item Club spring forecast said people are "overly relaxed about risk" and are "spending as if it was going out of fashion".

Club chief economic adviser Peter Spencer said: "The bottom line is that we are all living beyond our means."

"Ultimately we are all skating - not to say wobbling - on thin ice," he added.

The report highlights the current deficit in the public sector and expresses surprise that it built up at a time of economic strength and buoyant tax revenues.

"If the Chancellor is forced to borrow so much when the economy's so sweet, what will happen when it turns sour?" Mr Spencer asked.

I still can't get my head around the concept of an economy both being strong, and being in record and increasing amounts of debt.

[Lucifer Box]

Don't worry, wendy, house prices will increase at a minimum of 10% pa forever so the UK can just take out a giant re-mortgage on itself with the world bank.

[Throb_Nugget]

Don't worry, wendy, house prices will increase at a minimum of 10% pa forever so the UK can just take out a giant re-mortgage on itself with the world bank.

Strong economies depend on being people spending money on goods and services, regardless of where the money comes from. It will all eventually go t1ts-up just a Gordo is taking his seat in the Lords and pronoucing 'it weren't me, gov'

[NoddY]

It all depends on whether credit is being spent on good debt or bad debt (like housing).

[milanbenes]

if housing is bad debt, what is good debt ? hifi's, tv's, dvd players ?

Milan.

[Sysman]

if housing is bad debt, what is good debt ? hifi's, tv's, dvd players ?

Milan.

In a recession, you can sell a hifi, a TV or a DVD player.

You might not be able to sell a house.

[milanbenes]

ahh I see

in a recession, when everybody's trying to sell their dvd players, how much will my dvd player be worth ?

Milan.

[wendigo100]

ahh I see

in a recession, when everybody's trying to sell their dvd players, how much will my dvd player be worth ?

Milan.

You can afford to write off a DVD player.

[DodgyAgent]

ahh I see

in a recession, when everybody's trying to sell their dvd players, how much will my dvd player be worth ?

Milan.

Depends on whether you clean it or leave it looking like a plasterers radio

[milanbenes]

anyway back to the question, if a house is bad debt, what's good debt ?

Milan.