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Every Uk Taxpayer Has Lost £40,000 Since Credit Crunch Began


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http://www.guardian.co.uk/business/2009/ja...runch-recession

Official: £40,000 loss for every taxpayer

Latest City figures reveal that the plummeting stock market and plunging house prices have wiped out £1.2 trillion of Britain's national wealth

Heather Stewart and Gaby Hinsliff The Observer, Sunday 25 January 2009

An estimated £700bn has been lost in the housing market since the downturn began.

Every taxpayer in the country has lost almost £40,000 since the onset of the credit crunch, as plunging house prices and the savage sell-off in stock markets have obliterated £1.2 trillion of Britain's national wealth.

The combined impact of the property downturn and the slide in share prices has wiped out the equivalent of a full year's economic output, according to research by analyst Dharval Joshi at City bank RAB Capital, £38,700 for every one of Britain's 31 million taxpayers.

"We're only halfway through; there's more destruction to come before we stabilise," said Joshi, predicting that as much as £2 trillion could be knocked off the value of assets.

Even by the end of 2008, just six months into what many analysts believe will be a prolonged recession, he calculates that £700bn has been lost in the housing market since the downturn began, plus £500bn from Britons' pension pots and share portfolios.

Edited by gruffydd
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Oh no they haven't. I'm nickincash and I'm staying that way for a while longer as my cash becomes more valuable by the day and my landlord becomes poorer.

the way things are looking in this country now nothing is predictable. it could turn out that your cash[and mine] is destroyed by inflation and eventually houses are seen again as a safe investment again.

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Yes I agree - this is something I'm very conscious of. I'm ready to buy a house at a moment's notice when the right time comes but I just can't see house prices shooting up suddenly overnight. I just hope I'm not wrong.

the world has got a lot more complicated,on the one hand we all hope to take advantage of lower house prices, but at the same time the cash we have is at risk of diminishing in value, either slowly by inflation, or by a sudden collapse of the banking system and the pound collapse, which would be the rapid option. if the latter looked remotely likely would houses be seen as a rapid safe alternative to cash.

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http://www.guardian.co.uk/business/2009/ja...runch-recession

An estimated £700bn has been lost in the housing market since the downturn began.

Every taxpayer in the country has lost almost £40,000 since the onset of the credit crunch, as plunging house prices and the savage sell-off in stock markets have obliterated £1.2 trillion of Britain's national wealth.

The thing is, that £700bn never really existed in the first place. What were we going to do, sell the whole country to realize the money? Let's all be glad that some sanity is finally returning to this country.

I'm also totally in cash, ready to buy a place at a moment's notice. I haven't lost a bean, so some other poor mug's lost my £40k. I'm not concerned about inflation at all, who cares if things like bread etc get a bit more expensive when you're making £2-3k a month by simply not buying a house? The sweet spot to buy will come, but I doubt it will be this year. Just keep saving away, the time is gradually getting closer.

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http://www.newsoftheworld.co.uk/news/14267...eats-wages.html

FAMILIES are losing more money on their homes each week than they are earning in their wages, new figures reveal.

The average value of houses and flats is falling by £764 a week as prices continue to nosedive—yet the average pay packet is £479.

What a crock: this typical Daily Mail-type statistic was bo11ox on the way up and it's equal bo11ox on the way down...

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The thing is, that £700bn never really existed in the first place. What were we going to do, sell the whole country to realize the money? Let's all be glad that some sanity is finally returning to this country.

I'm also totally in cash, ready to buy a place at a moment's notice. I haven't lost a bean, so some other poor mug's lost my £40k. I'm not concerned about inflation at all, who cares if things like bread etc get a bit more expensive when you're making £2-3k a month by simply not buying a house? The sweet spot to buy will come, but I doubt it will be this year. Just keep saving away, the time is gradually getting closer.

i dont think there is an adult in the country who hasnt lost anything at all in this mess. anybody with a house has lost plenty, anyone in cash has lost intrest and it has deteriated against the rest of the world. we will all pay more for goods soon,as we are starting to for petrol now. taxes and bills will go up.even those renting will pay more in council taxes etc. this house collapse will turn into a double edged sword maybe

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http://www.guardian.co.uk/business/2009/ja...runch-recession

Official: £40,000 loss for every taxpayer

Every taxpayer in the country has lost almost £40,000 since the onset of the credit crunch, as plunging house prices and the savage sell-off in stock markets have obliterated £1.2 trillion of Britain's national wealth.

The price one pays for one's political apathy and ignorance.

Every nation deserves the governments it has.

And when I say governments I mean both - Tory and Labour.

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Here are the sums on the Great British Public's favourite 'investment'.

Housing stock value end 2007 = £4,000 bn

Housing stock value end 2008 = £3,300 bn

Mortgages accounted for 30% of value at end of 2007

An informed guess is that the value of those mortgages hasn't gone down (we haven't yet had negative lending, although it might happen any month soon).

Homeowners' equity end 2007 = 70%. i.e. = £2,800 billion

Homeowners' equity end 2008 = £2,100 billion

Homeowner's collective loss = £700bn/£2,800bn = 25%.

And their equity has fallen from 70% to 63% of the total value.

Source for the end of 2007 figures is in this link - worth a read for old time's sake

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If you are asking for a peaceful and realistic answer there are two options - in order of ease of achievement:

1. Vote LibDem

2. Change the electoral system from the "first past the post" to proportional representation.

I should have added that "Vote LibDem" is a quick fix,

what I really think needs to happen in this country is the move to "proportional representation".

Maybe I should set up a party :rolleyes:

Edited by threetimesdead
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