Financial Crisis(Redirected from MIRAS)
- 1 1987 Stock Market Crash
- 2 1988 Nigel Lawson Abolition of dual MIRAS Fiasco
- 3 1991
- 4 1997
- 5 2000
- 6 2001
- 7 2006 Fairpak Hamper Collapse
- 8 2007 Credit Crunch
- 9 See also
1987 Stock Market Crash
1988 Nigel Lawson Abolition of dual MIRAS Fiasco
Mortgage Interest Relief at Source, or MIRAS, was a scheme introduced by the government of the UK in 1983 in an effort to facilitate a greater level of borrowing for house purchases; it allowed borrowers tax relief for interest payments on their mortgage. This was available for the first £30,000 of a qualifying mortgage and up until 1988, those with joint mortgages were able to combine their allowances to £60,000. The Chancellor, Nigel Lawson in his budget of 1988 gave a two month window for the abolition of Joint MIRAS - which completely predictably gave rise to one of the fastest examples of House Price Inflation the UK has ever seen (i.e. a 2 bed house in an average West Wiltshire town that cost 50K in the April of 1988 was worth 70K by the August). After this point the market stalled and in the early 90s collapsed under the onslaught of rising interest rates (such that the house in the example above was worth only 38K in 1991) (see also What happened during the last house price crash). MIRAS was completely abolished in April 2000.
Bank Credit & Commerce International (BCCI)
BCCI went bankrupt
Robert Maxwell Mirror Pension Raid
Robert Maxwell robbed the Mirror Group pension fund of several hundred million pounds before falling off his yacht and drowning (some suspect suicide as his suspect buisness dealings were starting to become know).
Russia could not pay back the money it had borrow and LTCM suffered significant losses and thus went bankrupt. This episode is now seen as a practice exercise for the Northern Rock crisis!! How short our bankers memories are!
Gordon Browns Pensions Robbery
Gordon Brown introduces a stealth tax on pensions that will cost the pension funds £5 billion per year. This will significantly reduce the amount of money people get when retired. To date (2007) it is estimated that the pension funds have lost £100 billion due to this stealth tax. Most companies close there final salary pension schemes.
There are significant differences between Gordon Browns pension robbery and that of Robert Maxwell's. For example Robert Maxwell only took several hundred million where as Gordon has taken 100,000 million! It is also suspected that Robert Maxwell was so ashamed that he committed suicide were as Gordon is still taking 5,000million per year!
Dotcom Bubble burst
During the late 1990's people thought that internet companies would make massive profits this lead to a rush to buy their shares which then turned in to a bubble even though the Yields were zero i.e. most of these companies that people were investing massive amounts on money in had never made a profit or paid a dividend. Alan Greenspan response was to lower interest rates thus preventing a recession.
Equitable Life almost went bankrupt in 2000 after a House of Lords rulling that it had to honour it's Guarantee of Pension payouts to existing pensioners. This lead to a significant cut in the future pensions of thousands of people who had not yet retired.
The supposedly independent auditors kept assuring everyone that the company was strong but what latter can out was that the auditors were making massive profits from consultancy for Enron. Oh this sound familiar only this time it's the credit rating agencies reassuring us about the value of sub-prime loans while at the same time making massive profits from the sub-prime companies for making such ratings - not independent in fact more of a conflict of interest!