What will happen when the current V shaped recovery collapses?

[DimPrawn]

What do you think will happen? Will the USA and UK just do the same thing again, bail out the banks, print more trillions and blow up another bubble

or

throw in the towel and say all financial institutions are now bust, all your money is gone, everyone please start again and work your way out of this depression?

[Jeebo72]

Watch the south park episode where stan puts his money in the bank ... it explains it all ...

[DiscoStu]

What do you think will happen? Will the USA and UK just do the same thing again, bail out the banks, print more trillions and blow up another bubble

or

throw in the towel and say all financial institutions are now bust, all your money is gone, everyone please start again and work your way out of this depression?

We'll both default, go cap-in-hand to the IMF, they won't have enough cash to bail us out and we'll all end up using the Chinese Yuan.

HTH

[TimberWolf]

Presumably the collapse would have to happen quickly if it is to work, otherwise people would just pile into other currencies, assets or commodities like gold. Erm...

If the Dollar or Pound collapsed, would the Euro and Ozzie dollar fall too?

[Andy2]

We'll both default, go cap-in-hand to the IMF, they won't have enough cash to bail us out and we'll all end up using the Chinese Yuan.

HTH

A decent chinese takeaway will cost us an arm and a leg

[RichardCranium]

A decent chinese takeaway will cost us an arm and a leg

Still better than a Russian kebab (did we conclude that link was too sick to post?)

[SantaClaus]

Presumably the collapse would have to happen quickly if it is to work, otherwise people would just pile into other currencies, assets or commodities like gold. Erm...

If the Dollar or Pound collapsed, would the Euro and Ozzie dollar fall too?

The $ is currently being used as a carry trade currency. Therefore if the stock markets crash, the $ should appreciate. The $ is a risk aversion currency and rises when equities sink.

When the $ rises, EURUSD, GBPUSD, AUDSUD will all fall.

[TimberWolf]

It's going to be a coffin shaped* recovery


*Seen on HPC

[Clippy]

I think world leaders are trying to see us through to 2012 after which it won't matter as the world is due to end then.

[Andy2]

It's going to be a coffin shaped* recovery


*Seen on HPC

A V shaped coffin or W shaped