Comments on: gordonfreude http://knackeredhack.com/2008/06/27/gordonfreude/?utm_source=rss&utm_medium=rss&utm_campaign=gordonfreude the curious study of broken things Wed, 08 Feb 2012 11:37:57 +0000 hourly 1 http://wordpress.org/?v=3.1.3 By: Broadcasting House, black swans and political humiliation » knackeredhack http://knackeredhack.com/2008/06/27/gordonfreude/comment-page-1/#comment-35212 Broadcasting House, black swans and political humiliation » knackeredhack Sun, 07 Sep 2008 21:55:22 +0000 http://knackeredhack.com/2008/06/27/gordonfreude/#comment-35212 [...] Financial markets and wars represent the most severe tests for politicians, who can probably feel pretty satisfied with themselves on a day-to-day basis that some part of the world appears (at least) to dance to their tune. But today, on BBC Radio 4’s Broadcasting House programme, veteran political journalist Michael Cockerell, in partnership with presenter Paddy O’Connell, provided some long overdue insights into those limits of power by joining the dots between the current financial crisis surrounding the Brown government/Chancellor Alastair Darling and previous occasions when proud governments have been forced through the mincer.  There are some real insights here for fans of Gordonfreude. [...] [...] Financial markets and wars represent the most severe tests for politicians, who can probably feel pretty satisfied with themselves on a day-to-day basis that some part of the world appears (at least) to dance to their tune. But today, on BBC Radio 4’s Broadcasting House programme, veteran political journalist Michael Cockerell, in partnership with presenter Paddy O’Connell, provided some long overdue insights into those limits of power by joining the dots between the current financial crisis surrounding the Brown government/Chancellor Alastair Darling and previous occasions when proud governments have been forced through the mincer.  There are some real insights here for fans of Gordonfreude. [...]

]]> By: knackeredhack http://knackeredhack.com/2008/06/27/gordonfreude/comment-page-1/#comment-26580 knackeredhack Wed, 02 Jul 2008 08:42:47 +0000 http://knackeredhack.com/2008/06/27/gordonfreude/#comment-26580 James, I wonder too what distorting effect the massive and unexpected wave of immigration had on the usual economic signals. For instance, but for that influx would we not have seen a more significant economic softening earlier? Housing was supported, especially the rental sector, and retail sales too. And if reports are to be believed, EasyJet and sterling weakness can turn the influx into just as sudden an exodus, which would add to the inflationary wages argument. Tim James, I wonder too what distorting effect the massive and unexpected wave of immigration had on the usual economic signals. For instance, but for that influx would we not have seen a more significant economic softening earlier? Housing was supported, especially the rental sector, and retail sales too. And if reports are to be believed, EasyJet and sterling weakness can turn the influx into just as sudden an exodus, which would add to the inflationary wages argument.

Tim

]]> By: James Prichard http://knackeredhack.com/2008/06/27/gordonfreude/comment-page-1/#comment-26505 James Prichard Tue, 01 Jul 2008 22:57:39 +0000 http://knackeredhack.com/2008/06/27/gordonfreude/#comment-26505 Granite worktops are great if you have neither stainless steel pans that chip them nor glass bowls that themselves chip or shatter. The state of the economic kitchen will find an equilibrium but the Labour Government pushing voters toward home ownership was a symbolic change that Brown - though having better credentials than Blair - did nothing to resist. By analogy with schadenfreude, Gordonfreude would be a secret enjoyment of his situation. In the circumstances outright scorn may be the more appropriate reaction. This is the man that said "prudent" and "over the cycle" but made little preparation for the inevitable. Re Tim's comment, the main hubris was believing hype that propensity to Inflation in wages was dead, this was a temporary effect of Far East competition and outsourcing. In terms of domestic incentives and risk control I ask: why is every minicab driver building a string of rental properties financed by mortgages, whose fault is that really - theirs? Granite worktops are great if you have neither stainless steel pans that chip them nor glass bowls that themselves chip or shatter. The state of the economic kitchen will find an equilibrium but the Labour Government pushing voters toward home ownership was a symbolic change that Brown – though having better credentials than Blair – did nothing to resist.

By analogy with schadenfreude, Gordonfreude would be a secret enjoyment of his situation. In the circumstances outright scorn may be the more appropriate reaction. This is the man that said “prudent” and “over the cycle” but made little preparation for the inevitable. Re Tim’s comment, the main hubris was believing hype that propensity to Inflation in wages was dead, this was a temporary effect of Far East competition and outsourcing. In terms of domestic incentives and risk control I ask: why is every minicab driver building a string of rental properties financed by mortgages, whose fault is that really – theirs?

]]> By: knackeredhack http://knackeredhack.com/2008/06/27/gordonfreude/comment-page-1/#comment-26307 knackeredhack Mon, 30 Jun 2008 08:53:10 +0000 http://knackeredhack.com/2008/06/27/gordonfreude/#comment-26307 Dave, At a purely psychological level, based on my own direct experience, when hubris experiences reversal the disorientation that follows disables the faculties required to solve the ensuing problems. Recessions are painful, but some say that they are merely the process of society switching production from things that people no longer need in such abundance to things they do. For me the granite worktop symbolises that. Tim Dave,

At a purely psychological level, based on my own direct experience, when hubris experiences reversal the disorientation that follows disables the faculties required to solve the ensuing problems.

Recessions are painful, but some say that they are merely the process of society switching production from things that people no longer need in such abundance to things they do. For me the granite worktop symbolises that.

Tim

]]> By: DaveH http://knackeredhack.com/2008/06/27/gordonfreude/comment-page-1/#comment-26058 DaveH Sat, 28 Jun 2008 09:04:52 +0000 http://knackeredhack.com/2008/06/27/gordonfreude/#comment-26058 Tim - worth noting a couple of stories in the ever-so-slightly Gordonsceptic business pages of the Telegraph today. As a percentage of GDP British consumer debt is now the highest ever measured in any G7 country, and GB's housing adviser (and former MPC 'wise man') Stphen Nickell is predicting a slump in house prices so severe that they won't recover for seven years or more. The more data points that emerge, the more our economy seems to resemble 1990 Japan - massive debt, overinflated property and asset prices, embedded inflation and a system that uses taxpayers' money to prop up 'zombie banks' like Northern Rock in the interests of political expedience. If we are heading for a recession (and no disinterested party seems to be arguing that we are not) I believe that we will be lucky to end up like the 1980s - most likely we will end up with the 1970s and in the worst case we enter a period of deflation not unlike the 1930s. Whatever happens, asset prices will collapse and sweep away what's left of GB's rather tattered reputation for economic competence - not long now before his boast of 'an end to boom and bust' will be thrown back at him at PMQ's. Still, you've got to laugh, haven't you? Tim – worth noting a couple of stories in the ever-so-slightly Gordonsceptic business pages of the Telegraph today. As a percentage of GDP British consumer debt is now the highest ever measured in any G7 country, and GB’s housing adviser (and former MPC ‘wise man’) Stphen Nickell is predicting a slump in house prices so severe that they won’t recover for seven years or more.

The more data points that emerge, the more our economy seems to resemble 1990 Japan – massive debt, overinflated property and asset prices, embedded inflation and a system that uses taxpayers’ money to prop up ‘zombie banks’ like Northern Rock in the interests of political expedience. If we are heading for a recession (and no disinterested party seems to be arguing that we are not) I believe that we will be lucky to end up like the 1980s – most likely we will end up with the 1970s and in the worst case we enter a period of deflation not unlike the 1930s. Whatever happens, asset prices will collapse and sweep away what’s left of GB’s rather tattered reputation for economic competence – not long now before his boast of ‘an end to boom and bust’ will be thrown back at him at PMQ’s.

Still, you’ve got to laugh, haven’t you?

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