Quote Originally Posted by christopher leigh View Post
Diversification is not necessarily good, which you seem to insist on. And I'm not interested in the opinions of an interfering and meddling regulatory body,like the FSA. If a person invests in 4 companies and they all fail then his diversification wasn't good. You seem to be implying that if you spread your money around enough, then that in itself will secure success. Your position is deterministic.

We are in a recession already and it's obvious to most people. We don't need to wait for government figures to know that. The question is will we reach a depression in the next few years. The answer to that depends on what our government does from now on. It isn't looking too promising.

There is one word that will make or break the current situation.
Confidence

They are going to try and throw all this money at it , 600, 700 800 billion whatever but if confidence is lost then it will all spiral rapidly out of control.
My industry is cutting back for the first time since the late eighties. Large companies are laying people off. Not good for confidence.

You can chuck all the money you like at this problem but in the end the goverment, bank of england, bush whatever cannot and dont know how to stop the spiral if it comes quickly.
Bradford and Bingley have basically been saved from going bust. You dont need many more before a meltdown occurs.
The yanks are saying there is three trillion dollars worth of bad debt.

No one knows what will happen because we have never been in this situation before.