let's talk about the stonks market(s) and possible depression ๐Ÿ’ธ๐Ÿ’ฒ๐Ÿ“‰๐Ÿ˜ฌ

looks bad

is this the big one? iโ€™ve tried to learn more economics and stock market stuff but it just seems dumb and fake

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I know absolutely shit all, fuckin NOTHING about how any of this works, but surely thereโ€™s some interventions in place to stop it happening like last time?

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i tried to find out if theyโ€™d put protections in place in case corona tanked the global economy and :confused:

That seems optimistic!

I remind you

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Shouldโ€™ve taken my free shares out a few weeks ago when they were ยฃ15 a go.

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Wait, did the last recession end?

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Could be the big one. Come out of left field as doubt many would have guessed it would be a pandemic that would cause itโ€ฆ
I mean, when entire economies are entirely dependent on growth to sustain them, and then everything shuts down for an indeterminable amount of time, that is bbbbad news. The modern world hasnโ€™t experienced anything like this.
Worry for peopleโ€™s jobs

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Probably going to have an effect on Brexit to an extent isnโ€™t it? Reckon even this government will realise they canโ€™t bully out and lose a load of nurses and other public sector workers.

A bubble economy plus a pandemic plus Russia and Saudi Arabia going toe-to-toe over oil prices is a recipe for disaster. As per usual, itโ€™s going to be ordinary people who lose out - pensions, savings, on top of job losses. Absolutely terrible. Looks hideous right now, and the Dow isnโ€™t even open. Of course, all the freaks who love bear markets are out talking about opportunity, but who knows where the bottom is?

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The last recession in the UK lasted from April 2008 until June 2009 if you use the academic definition of a recession, i.e. 2 successive quarters of negative GDP growth.

Other definitions are available.

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Driven by two things.

  1. Corona looks like itโ€™s here for the foreseeable future and traders are now pretty much convinced thereโ€™s gonna be a lengthy recession across the world
  2. Russia and OPEC holding a race-to-the-bottom price war on oil (the price of oil impacts everything in the economy).

If you remember that the whole worldwide economy is predicated on the need for year-on-year growth, then the capital flight makes a lot of sense - you ainโ€™t gonna be getting your 5% growth this year.

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Whatโ€™s a bear market?

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Iโ€™m meant to be going to Russia next month. Will the exchange rate improve (so more rubles for my pounds)? Or will everything get more expensive there?

Sorry, I know itโ€™s very trivial and not the matter at hand but I donโ€™t really understand macro economics at all. Itโ€™s too big and weird to get my head around

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Aye. I think the instructive bit for us in the UK is how poorly weโ€™ve recovered since the recession on standard economic terms and how weโ€™ve failed to mitigate the worst impacts; it feels to me like weโ€™re much worse equipped to see out the next one (whenever it happens) than we were the last one.

A strong decline in prices over a period of time - typically 20% or more.

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When stock markets fall 20% or more from their recent highs.

Iโ€™m a big fan of the stock photos used for market crashes

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Todayโ€™s FT:

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Now is this good or bad if you were, hypothetically, coming up to needing to remortgage a property that will be given a ยฃ0 valuation?

It seems to me that if the value of the property is ยฃ0, then youโ€™re living on a toxic wasteground or something?

(I would expect that interest rates in general will fall, but lending will be harder to come by - criteria for loans will become tighter).