[Ash4781]

http://news.scotsman...K39s.4418155.jp

Quote

PERSONAL debt in the UK exceeds the income generated by the country as a whole for the second year running, research showed today.
The total amount owed by consumers through mortgages, loans and credit cards rose by 7.3 per cent during the year to the end of June to stand at £1.444 trillion, according to accountants Grant Thornton.

But during the same period gross domestic product (GDP) rose by only 5.1 per cent in nominal terms to £1.41 trillion. As a result it would take until January 8, 2009, to pay off the UK's outstanding consumer debt from GDP during a calendar year.

Stephen Gifford, Grant Thornton's chief economist, said there was no cause for panic because personal debt was well covered by the UK housing stock. But he added: "If the property market and economy continue to weaken, the current levels of personal debt will become unsustainable."

http://ukpress.googl...SG0tI2xbgqdjRyw

Quote

Stephen Gifford, Grant Thornton's chief economist, said: "Despite the global downturn flattening the growth of personal debt and UK GDP over the past few quarters, debt levels continue to grow at a faster rate than the income the UK generates.

This post has been edited by Ash4781: 22 August 2008 - 03:34 PM

[Realistbear]

Ash4781, on Aug 22 2008, 04:32 PM, said:

http://news.scotsman...K39s.4418155.jp

QUOTE: no cause for panic because personal debt was well covered by the UK housing stock

PANIC! PANIC!

[Jay76]

Realistbear, on Aug 22 2008, 04:34 PM, said:

QUOTE: no cause for panic because personal debt was well covered by the UK housing stock

PANIC! PANIC!

How is the debt covered by the housing stock? Are the houses going to go out and graft to pay off the debt? Silly me, I've been going to work for money and all the time I could have simply sent a house to do it.

[Bloo Loo]

Jay76, on Aug 22 2008, 04:38 PM, said:

How is the debt covered by the housing stock? Are the houses going to go out and graft to pay off the debt? Silly me, I've been going to work for money and all the time I could have simply sent a house to do it.

debt is the new wealth dontchaknow

[wonderpup]

Quote

Stephen Gifford, Grant Thornton's chief economist, said there was no cause for panic because personal debt was well covered by the UK housing stock. But he added: "If the property market and economy continue to weaken, the current levels of personal debt will become unsustainable."

How can anyone being paid as a 'chief economist' sign his name to such an absurd comment? Have these people simply stepped through the looking glass and now totaly confuse their own theoretical universe with reality? How long before one of these guys simply disappears up his own anus?

[Yoss]

Realistbear, on Aug 22 2008, 04:34 PM, said:

QUOTE: no cause for panic because personal debt was well covered by the UK housing stock

PANIC! PANIC!

Don't Panic... remember these figures factor in paid up pensioners, and people not suckered in by the live now pay later culture. Factor those out then you have real reason to panic!

credit action stats of 11.8 million households with a mortgage AVG debt of £102,000 doesn't sound so bad, 30K pa can service that. But that is an AVG!

For each 100 AVG joe's there are 25 households up to thier eyes in it, borowed to the hilt, with massive unforseen rises in mortgage/energy/fuel/food costs adding to thier 100% IO burden, add in the 10% rises we will see in council tax next year and continued weekness in GBP...Then and only then you begin to realise how nasty the picture looks, Merv wasn't lying when he said the nice decade was over, as some painful re-adjustment is clearly needed for the UK to compete in a global market.

[UKguy1979]

The true experts are the people on this website, all their predictions have come true!

All these so called professionals are just a bunch of idiots, who change their minds like the weather

This post has been edited by UKguy1979: 22 August 2008 - 07:45 PM

['Bart']

Quote

Stephen Gifford, Grant Thornton's chief economist, said there was no cause for panic because personal debt was well covered by the UK housing stock.

It is now officially time to panic.


Oh Jesus, oh God, what are we gonna do, what are we gonna do, where's the exit, get out of my way you fools.



















Ahem. Sorry about that. Feeling much better now.

[Yorkshire Lad]

Pleased to say that since selling 25th July, I'm now credit card, loan and mortgage free, with money in the bank as well for a deposit - or I may just rent and let someone else service the mortgage commitments.

[tinker]

Jay76, on Aug 22 2008, 04:38 PM, said:

How is the debt covered by the housing stock? Are the houses going to go out and graft to pay off the debt? Silly me, I've been going to work for money and all the time I could have simply sent a house to do it.

Stephen Gifford, Grant Thornton's chief economist !!!

Isn't debt like getting paid in advance, taking a sub on the week's wages... Aren't house prices devaluing? Don't people need somewhere to live, preventing them from cashing in on this miraculous asset that will wipe the debt?

People on this site have been watching the debt bubble increase over the years, incredulously, and nobody with the power and influence to do so did anything to stop the madness.

The Credit Action stats actually actually showed debt greater than GDP last year... so the debt situation is getting worse.

We are going into a recession, how are people going to pay off the debt? Because you can bet they sure as hell haven't allowed for tough times. No more boom and bust, indeed!

This post has been edited by tinker: 22 August 2008 - 07:57 PM

[Britney's Piers]

wonderpup, on Aug 22 2008, 08:08 PM, said:

How can anyone being paid as a 'chief economist' sign his name to such an absurd comment? Have these people simply stepped through the looking glass and now totaly confuse their own theoretical universe with reality?

That's basically describing the entire country.

[deus ex machina]

Bubbles, Bubbles, who will buy my Bubbles?

If promises were gold I would be weaving dreams of angel dust into Rapunzel tresses stretching to Rainbow's end where Croesus sleeps....

But what the hell, maybe the post wont come tomorrow and Visa has lost my address.

God help the stupid English.

[Yoss]

tinker, on Aug 22 2008, 08:56 PM, said:

Stephen Gifford, Grant Thornton's chief economist !!!

Isn't debt like getting paid in advance, taking a sub on the week's wages... Aren't house prices devaluing? Don't people need somewhere to live, preventing them from cashing in on this miraculous asset that will wipe the debt?

People on this site have been watching the debt bubble increase over the years, incredulously, and nobody with the power and influence to do so did anything to stop the madness.

The Credit Action stats actually actually showed debt greater than GDP last year... so the debt situation is getting worse.

We are going into a recession, how are people going to pay off the debt? Because you can bet they sure as hell haven't allowed for tough times. No more boom and bust, indeed!

Easy GBP devaluation, we have no other choice! You think a chinease semi skill plumber charges £250 a day? you can scream knowledged based economy from the hills all you like, something has to give and it will be GBP, we are already down to 1.85 (Weakened USD), Get any savings you have out of GBP! it is a dead currency built on a "knowleged based" housing bubble of epic proportions!

[tinker]

Yoss, on Aug 22 2008, 09:21 PM, said:

Easy GBP devaluation, we have no other choice! You think a Chinese semi skill plumber charges £250 a day? you can scream knowledge based economy from the hills all you like, something has to give and it will be GBP, we are already down to 1.85 (Weakened USD), Get any savings you have out of GBP! it is a dead currency built on a "knowledge based" housing bubble of epic proportions!

"This does not mean that the pound here in Britain -- in your pocket or purse -- is worth any less..."
It's a bit of a mess, n'est-ce-pas?

Notice that Newsnight we already giving airtime to someone saying that we have had in fact two quarters of negative growth (seasoned figures!). I dare say that's how it will pan out when 'official figures' are revised.

[laurejon]

Has anyone realised that having a mortgage today can be a good thing ?


In a high inflation environment your debt is eroded by inflation at the rate of inflation.


Therefore if your mortgage interest is 6% and inflation is 6% then that would be neutral and you would be well advised to hold onto your property.