There Will be a Double Dip Economic Recession, the Tipping Point
By: Richard Hartley
Mar 30, 2011
The first part of this sorry tale was caused by greed and inflated money markets. This gave near full employment and unprecedented growth around the world.
The last two years has been caused by the markets realization that you cannot carry on and keep re-inflating the money markets as really there was no-one else left to lend to. People max’d out on credit cards, took equity withdrawals. A stupid scheme was enacted to allow people with no money to own homes backed by large mortgages giving to anyone that asked and to a lot that didn’t but just signed on the dotted line. .
In all, this took away the spirit of ‘working for a living’ and for people to be truly entrepreneurial ability to excel. Everyone became an entrepreneur. Of course this isn’t possible. Each person was told that if you followed ‘the entrepreneurial game plan’ written by ‘Rich Quick’ you’d make money. Everybody wanted IN. Individuals, companies, banks, governments. For different reasons. Governments wanted big revenue as this bought votes. That’s why it was allowed to happen. Many legislators also had vested interests. No one wanted it to end. And finally after several dogs received mortgages there was no-one left to lend to and defaults started.
How long will it take to remove the excess from the economy?