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Bear Goggles

Consumer Credit Expansion

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...is 12.1% unsustainable?

UK borrowing slowdown continues

The Bank's figures show that in July this sort of borrowing - known as consumer credit - was increasing at an annual rate of just 12.1%.

Oh no, we're stuffed consumer credit is only expanding by 12.1%. The economy is screwed because we're only increasing borrowing at about 3x wage inflation.

Now it's late and I've had a beer so maybe my mind is a bit fuzzy, but perhaps someone more knowledgeable than me can come up with an argument as to how we can sustain an increase in consumer credit higher than wage inflation.

Is it possible? :blink:

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Just shows what an increasingly bizarre world we're living in...I heard somebody earlier today saying that £180k for a house is "nothing". Maybe it's something in the water...

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Now it's late and I've had a beer so maybe my mind is a bit fuzzy, but perhaps someone more knowledgeable than me can come up with an argument as to how we can sustain an increase in consumer credit higher than wage inflation.

we can't

Edited by cgnao

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All the illusory wealth that this property boom has created has clearly altered the perception of the vast majority of the population.They now treat the sort of sums of money that were up until recently seen as quite immense as small change now.If you ask me we desperately need this recession and the subsequent correction it is quite clearly going to wreak.I think that the property owning classes need a good lesson in how you cannot make your own rules up as you go along especially where the housing market is concerned.This sort of thing has been allowed to go on for far too long.Apart from the slight terse comment given by mervyn king and the odd economist that is outside the closely knit circle of vested interests the population has had it bred into them for years now that a rollercoaster housing market and a debt driven economy are perfectly acceptable.We are about to be very rudely awakened from this and its not before time......................

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  • 302 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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