eric pebble Posted August 5, 2005 Share Posted August 5, 2005 Bankruptcies hit another record - http://news.bbc.co.uk/1/hi/business/4748211.stm Irresponsible lending is partly to blame for the surge in bankruptcies The number of individual insolvencies in England and Wales soared by an annual 36.8% in the second quarter, official figures show. "This is something the Bank of England will need to keep a close eye on," said Howard Archer at Global Insight. If current trends continue, annual bankruptcy rates could double, other analysts have warned. "These figures do not paint a pretty picture," said Steve Treharne, head of personal insolvency at KPMG. "Consumer lenders and individuals need to take stock of this black cloud of debt and act now to do something about it." Quote Link to comment Share on other sites More sharing options...
eric pebble Posted August 5, 2005 Author Share Posted August 5, 2005 MORE!! Consumer debt fears as insolvency rises By Miles Costello, Times Online - http://business.timesonline.co.uk/article/...1722619,00.html A sharp rise in the number of individuals being declared insolvent during the second quarter has prompted some City economists to express concerns about the high level of consumer borrowing. Quote Link to comment Share on other sites More sharing options...
BringItOn Posted August 5, 2005 Share Posted August 5, 2005 MORE!!Consumer debt fears as insolvency rises By Miles Costello, Times Online - http://business.timesonline.co.uk/article/...1722619,00.html A sharp rise in the number of individuals being declared insolvent during the second quarter has prompted some City economists to express concerns about the high level of consumer borrowing. <{POST_SNAPBACK}> But I thought UK PLC was doing very nicely thank you very much Me thinks the shit is really starting to hit the fan now. Note how the bad news is getting rather mainstream now. Even after a rate cut there is little spin. I think they have run out of arguments. Quote Link to comment Share on other sites More sharing options...
delite1 Posted August 5, 2005 Share Posted August 5, 2005 "What we're seeing is a lot of people who can't afford to go bankrupt, but need to go bankrupt. They can't afford the fee," said CAB spokesman Dan Levene. " Have you ever heard anything so ridiculous in your life? Quote Link to comment Share on other sites More sharing options...
Roman Abramovitch Posted August 5, 2005 Share Posted August 5, 2005 Mark my words the repossession figures will jump as well. CRISIS WHAT CRISIS????????????? The U K is right up the creek without a paddle Quote Link to comment Share on other sites More sharing options...
Sledgehead Posted August 5, 2005 Share Posted August 5, 2005 But I thought UK PLC was doing very nicely thank you very much<{POST_SNAPBACK}> PLCs may well be : the insolvencies are for individuals (the sort that have or would like to have a mortgage). Quote Link to comment Share on other sites More sharing options...
Sledgehead Posted August 5, 2005 Share Posted August 5, 2005 (edited) Bankruptcies hit another record - http://news.bbc.co.uk/1/hi/business/4748211.stm"This is something the Bank of England will need to keep a close eye on," <{POST_SNAPBACK}> ... and do what?!@? Lower interest rates and have the banks tempt in even more fools, or cut them and push a few more repayments above people's heads? Yesterday's cut sent a clear (if unintended) signal to the profligate: if things get tough for you, we'll bail you out. There is no easy way out of this. Edited August 5, 2005 by Sledgehead Quote Link to comment Share on other sites More sharing options...
Guest Bart of Darkness Posted August 5, 2005 Share Posted August 5, 2005 Analysts said Thursday's rate cut may provide modest relief to debtors but warned it may lead them to borrow more. As Sledgehead said, there is no easy way out of this mess. Quote Link to comment Share on other sites More sharing options...
OnlyMe Posted August 5, 2005 Share Posted August 5, 2005 It the is the BOE who have created the conditions that allowed the banks to go on a profligate lending spree in the first place. It was obvious years ago what the banks were doing and the BOE feigned ignorance - or was it really stupidty? Still, all that debt is baked in the cake now. Running an economy on recent levels of debt growth is that act of willful negligence. Quote Link to comment Share on other sites More sharing options...
justanewbie Posted August 5, 2005 Share Posted August 5, 2005 Sharply rising. Quote Link to comment Share on other sites More sharing options...
Sledgehead Posted August 5, 2005 Share Posted August 5, 2005 (edited) cracked myself up at that blog link yesterday with the spoof quote: "If stupidity got us into this mess, why can't it get us out!" Wish I'd thought of that. The BoE needs to get out of the office and watch real people. Look at the media and adverts and see just how debt addicted the country has become, not only by value, but by psyche. I was watching some MFI or whatever ad describing a sale when I became uneasy about the language. Then I realised what was wrong: "With reductions like these you can't fail to save!" said the ad. What it was actually saying was: "With inducements like these we can't fail to make you SPEND!" Slowly but surely people are forgetting what financial independence is... Edited August 5, 2005 by Sledgehead Quote Link to comment Share on other sites More sharing options...
Bear Goggles Posted August 5, 2005 Share Posted August 5, 2005 Hmmm... I'm beginning to believe that the bank is going to slash interest rates and let inflation "do the work" Rough times ahead I think Quote Link to comment Share on other sites More sharing options...
Sledgehead Posted August 5, 2005 Share Posted August 5, 2005 Hmmm... I'm beginning to believe that the bank is going to slash interest rates and let inflation "do the work"Rough times ahead I think <{POST_SNAPBACK}> They are of course supposed to warn us (well Gordon) if that is what they are going to do (intentionally or otherwise). Quote Link to comment Share on other sites More sharing options...
Zzzzzzzzzzzzzzzzzzzzzzzzzz Posted August 5, 2005 Share Posted August 5, 2005 (edited) I know several people around here who have purchased residential property and business property, on credit cards over the last few years. I started worrying about debt when I was in the office of my boss, a few years ago, and I overheard him purchasing his new business premises with a credit card as he couldn't secure a mortgage. I can't figure out how you can do this with a credit card - any ideas? Does anyone else know people who have bought with credit cards? Edited August 5, 2005 by gruffydd Quote Link to comment Share on other sites More sharing options...
Bear Goggles Posted August 5, 2005 Share Posted August 5, 2005 They are of course supposed to warn us (well Gordon) if that is what they are going to do (intentionally or otherwise).<{POST_SNAPBACK}> If the Bank really are stuck between a rock and a hard place, they probably will take the option that allows them to take the least blame. If they raise rates: Digby and the CBI start bleating, everyone who has debt starts bleating, and when they can't pay it off the banks will start bleating. Result = "It's all the BofE's fault cos interest rates are too high" If they cut rates: Inflation takes off, they have to write a grovelling letter to Gordon, sterling plummets, commoditiy prices go through the roof as does unemployment, everyone ends up too poor to put petrol in their cars. Result = "it's not the BofE's fault, it's all the fault of The Chinese/ Al Qieda/ Iran/q - just about anyone else but us" But hey, at least your house is still worth 250k - unfortunately so is a loaf of bread! (Extream example) (Wasn't it Keynes who said that wages tend to be "sticky" on the way down?) Quote Link to comment Share on other sites More sharing options...
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