The recession is over.

Molokai said:
You missing the point. How convenient that crime is now part of the statistics just before GDP data is announced. Due to crime SA is now officially out of recession. If it was left as is, without crime, we would still be in recession. :erm:
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Another sign That crime pays in this country. Wow we sould be proud.:rolleyes:
 
fluKe said:
Fortunately we have one of the strongest economic policies in the world when it comes to preparation for a recession. This is partially why we are going to experience an upswing and progress into a boom before most other countries. Our banking laws > pretty much every other country.
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Sophistication not neccessarily laws. We aren't in the process of making laws that prevent bankers from earning large bonuses for example. In fact I would encourage banks to compensate their board members and higher-ups. A good salary would mean we get the best people, which will mean we will continue to have a better system with people in place who understand the market, the economy and the financial system the best.

A side note on banks: Recently the Swiss (Notable banking country) has given in to pressure from the US and Europe to allow information of people who bank in Switzerland to be given to the US and European authorities. So the Swiss banks have lost a major degree of credibility in the banking world. Previously their strictness of client confidentiality meant that people were encouraged to bank with them. That is no longer the case.

Maybe if our banks got on board, we could become the new "safe-haven" to put your money into. Bank with SA, financial secrecy guarenteed?! Would mean we couldn't cave to US, Europe pressure but since we aren't from that part of the world it may work in our favour?

When it comes to budgets, government spending under Manuel hasn't gone overboard, hes been conservative, spent a little less, borrowed a little less and thus we aren't in as bad shape.

Banks definately didn't chase paper "profits"... so we are much better off. The thing is I feel it is almost irrelevant how good or bad we have done.

If the major players in the world economy start to dive we will start to follow just because of the financial pull they haver.

We need to look at the US economy. Japan, China etc. and understand whats happening there.
 
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Molokai said:
SA is now out of recession because the crime is now part of the countries GDP. Nice one. (read the article quoted further up)
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Are you suggesting South Africa has a higher than per average income from criminal activities (drug sales etc) ? Don't get out much do you ?
 
Molokai said:
You missing the point. How convenient that crime is now part of the statistics just before GDP data is announced. Due to crime SA is now officially out of recession. If it was left as is, without crime, we would still be in recession. :erm:
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/*Facepalm

Crime can cause a recession as it takes income from the mainstream economy. The growth of the parallel economy means that the mainstream economy is shrinking.
 
Just to be clear, recession is defined as declining GDP for two successive quarters. So even if it s only 0.9% growth its positive, means we have moved out of the recession. To re-enter we need to have a declining GDP for quarters four (2009) and one (2010) which is quite unlikely with the world cup happening next year.

Heres an article confirming HK, Germany and France exited the recession in the 2nd quarter.
 
Indicators show consumer spending is still weak which indicates things still suck. Only 2010 related crap like construction etc is responsible for this growth which means nothing to the average Joe who is not involved in 2010 projects.
 
milano said:
Indicators show consumer spending is still weak which indicates things still suck. Only 2010 related crap like construction etc is responsible for this growth which means nothing to the average Joe who is not involved in 2010 projects.
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Not really that money will filter through the whole economy. The construction workers take their pay and spend it in the real economy.
 
BBSA said:
Not really that money will filter through the whole economy. The construction workers take their pay and spend it in the real economy.
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The indicators show it is not filtering - look at retail figures, real estate, etc.
 
BBSA said:
It takes time, at least we are moving in the right direction.
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Agreed, I am just pointing out that the recession may be over by the financial definition, but the average joe is still suffering as displayed by very weak retail results.
 
BBSA said:
:D

Mr. Doom and Gloom.

Please tell everybody how bad things are so you can lose a few more property deals:D
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Hello Mr. Delusional.

Please tell everybody how you're going to sustain economic growth when resource production has peaked. :D

Good luck with that....
 
StrongTurd said:
Hello Mr. Delusional.

Please tell everybody how you're going to sustain economic growth when resource production has peaked. :D

Good luck with that....
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Dude, just go kill yourself if you predict the future to be so bleak and hopeless. You're clearly not interested in solutions so why not just get out of the way ?
 
Therooster said:
Dude, just go kill yourself if you predict the future to be so bleak and hopeless. You're clearly not interested in solutions so why not just get out of the way ?
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Dear Mr. Delusional #2,

I've provided you with concrete facts from very credible sources indicating that global hydrocarbon production has peaked. Again, please can explain to me how you plan on maintaining economic growth under conditions where oil production is declining at 2.2 mbd per annum? I'd like to see you try. Honestly. I find it mildly amusing that the sheeple persistently fail to realise that sustainable economic growth is in fact an oxymoron.

The bottom line is that, unless we adopt an entirely new economic model that is not based in perpetual debt driven growth, then our society is bound to fail. Plain and simple.
 
JungleBoy said:
/*Facepalm

Crime can cause a recession as it takes income from the mainstream economy. The growth of the parallel economy means that the mainstream economy is shrinking.
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You're thinking of the "broken window" economic hypothesis here, but bear in mind that many of the newly added activities do not "take" from mainstream economy - hawkers, street traders, prostitution, etc.
 
Molokai said:
You missing the point. How convenient that crime is now part of the statistics just before GDP data is announced. Due to crime SA is now officially out of recession. If it was left as is, without crime, we would still be in recession. :erm:
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No. The NOE (non-observed economy), which includes criminal activity, but also hawking and other technically illegal trades, was added into the rebased GDP figures back to 2005 (the new base year), so the 0.9% increase is definitely an apples-to-apples comparison.
 
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