We thought it would be interesting to investigate the financial implications of the doomsday scenario since we were already talking about it. We experienced the Financial Crisis of 2008, which some thought was the end of the world. Yet we’re all still here, mostly intact, and awaiting Is there such a thing as financial Armageddo.
Financial Armageddon is a reality
Local governments in the UK are hurtling toward a crossroads based on the LGA report on future financing. According to current projections, council budgets will be short by £16.5bn by 2020. With 45% of budgets predicted to be spent on social services by the end of this decade due to increased demand and with waste collection creating significant cost pressures, services such as road maintenance, libraries, and leisure could see their budgets eroded by 90% compared to their current levels. In addition to the 28% cuts between 2010/11 and 2014/15, the growing demands for services have left councils facing a financial abyss. Some of the most valued public services will be seriously threatened if this funding gap is not bridged. The local government would be unable to be a catalyst for the social, economic, and environmental well-being of the local community. Partnerships would no longer be able to be formed through place leadership.
The financial Armageddon
The funds rate had reached 5–1/4 percent by mid-2006, so for a while, the economy did seem well balanced. However, the FOMC kept the rate on hold on August 8. According to the statement, “inflation pressures are likely to moderate” due to contained inflation expectations and prior tightening that, among other factors, restrained aggregate demand. In the next paragraph, part of the previous statement was repeated, but the excessively obvious reference to its future actions being consistent with its objectives was removed .
Blog by John Carney, Net-Net
The brightest and best in New York City urged a bailout when the city could not find investors for its debt in the 1970s. David Rockefeller, the head of Chase Manhattan Bank (one of the largest holders of NYC debt), warned that if New York City defaulted, the entire financial system would collapse. Other observers argued that capitalism had failed if New York City defaulted.
A Pony Blog by Cindy Perman
The financial Armageddon occurs when the economy tumbles so spectacularly that it crushes that thin layer of Styrofoam between me and my food chain, leaving me eyeball to eyeball with dinner. How long can we keep this up? This is the question that keeps me awake at night. (This is also the reason I don’t like eating fish with the head still on.)
Blog post by Patti Domm, Market Insider
In the event of a Lehman Brothers failure, the rumors of banks closing and ATMs not working would not be just rumors, and you would not be laughing at those people who put in wall safes to keep their cash.
Blog by Jane Wells, Funny Business
Since I live in California, I feel like I should already be in the middle of financial Armageddon. In this state, more than half of us know someone who’s going through foreclosure, or who’s already lost their home. About one in three of us has an underwater mortgage. The state can’t handle a budget deficit larger than the GDPs of more than a hundred countries.
