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arrgee1991

The Uk Debt Mountain

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So each household is in hock for about £200K - the average house price is about £165K - so we are all in negative equity :angry:

http://www.telegraph.co.uk/finance/economics/8663781/UK-public-sector-debt-estimated-at-135000-per-household.html

"The United Kingdom's debt mountain is manageable if – and only if – strong economic growth is to be anticipated,"

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So each household is in hock for about £200K - the average house price is about £165K - so we are all in negative equity :angry:

http://www.telegraph.co.uk/finance/economics/8663781/UK-public-sector-debt-estimated-at-135000-per-household.html

"The United Kingdom's debt mountain is manageable if – and only if – strong economic growth is to be anticipated,"

So it's not manageable then. Time to make some REAL cuts. This should get interesting at some point.

It's only a matter of time.......

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You forgot that not everyone owns a house. It's only around 65% of the populous.

That doesn't make it any better! Someone ultimately owns the house, so each house is in negative equity.

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When are we gonna get punished for this? We need punishing.

Whoever dishes out punishment for such awful errors...

PUNISH US

*pulls down pants* (sibleys)

Edited by Reck B

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lets say 40% of GDP is really where the wealth comes from.

Now lets say thats 20% profit.....that leaves us with income of of 8% of GDP to pay the 3.4 times borrowing...

hmm, thats debt @ 42.5 times income....sounds sustainable.

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This is such bad reporting, what they fail to explain is the bank bail out was not money handed to banks it was in return for shares, the government will get probably all the money back, where it is costing us is that they had to borrow that money so they are paying interest on it with no real return. When you take this back out of the equation as you should because although its a debt, unlike the other debt it is offset against an asset. But of course that wouldn't sound so dramatic.

Cant stand this kind of reporting. Only plebs can read this and not realise they have picked and choose the amounts without looking at the detail to sensationalise a story that is nothing new.

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This is such bad reporting, what they fail to explain is the bank bail out was not money handed to banks it was in return for shares, the government will get probably all the money back, where it is costing us is that they had to borrow that money so they are paying interest on it with no real return. When you take this back out of the equation as you should because although its a debt, unlike the other debt it is offset against an asset. But of course that wouldn't sound so dramatic.

Cant stand this kind of reporting. Only plebs can read this and not realise they have picked and choose the amounts without looking at the detail to sensationalise a story that is nothing new.

All borrowing is against an asset, thanks for the advice.

It may be an ability to repay, it may be a financial asset like a share, or a hard asset like a house.

As he government has a huge amount in shares in the publicly acknowledged stricken banks, then selling them all back at market price is going to be tricky.

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All borrowing is against an asset, thanks for the advice.

It may be an ability to repay, it may be a financial asset like a share, or a hard asset like a house.

As he government has a huge amount in shares in the publicly acknowledged stricken banks, then selling them all back at market price is going to be tricky.

Not all borrowing is against an asset, if you borrow money to go on holiday, there is no asset there....

If you borrow money to buy a mars bar, eat that mars bar, there is no asset, unless RBS etc go under which wont happen then there will be an asset there.

Also they use households instead of people as again this increases the amount of perceived debt, its classic sensationalist journalism, as much as I hate when HP goes up they say house prices are back on track I also hate this kinda of journalism, you cant pick and choose when you accept stats that are not meaningful.

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Not all borrowing is against an asset, if you borrow money to go on holiday, there is no asset there....

If you borrow money to buy a mars bar, eat that mars bar, there is no asset, unless RBS etc go under which wont happen then there will be an asset there.

Also they use households instead of people as again this increases the amount of perceived debt, its classic sensationalist journalism, as much as I hate when HP goes up they say house prices are back on track I also hate this kinda of journalism, you cant pick and choose when you accept stats that are not meaningful.

course there is...its the PROMISE to pay it back....that is the VALUE in a debt that makes each and every debt an asset for the banking system.

Indeed, the biggest loans in everyday use are Government Bonds....secured solely on the ability to repay...You may have read a little about this in the press.

Edited by Bloo Loo

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Right so the BoE printed £200bn for equity stakes in the banks? :blink:

Before holding such strong opinions, I would recommend some reading.

I actually didnt say anything about where the money came from, printing money and the effect of devaluing your currency is technically a completely different issue compared to the debt of the country and if anything actually reduces the countries debt but causes knock on effects that anything imported goes up in price, hence why our inflation is so high. So please dont make out im an idiot.

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lets say 40% of GDP is really where the wealth comes from.

Now lets say thats 20% profit.....that leaves us with income of of 8% of GDP to pay the 3.4 times borrowing...

hmm, thats debt @ 42.5 times income....sounds sustainable.

42.5, almost the answer to the universe

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course there is...its the PROMISE to pay it back....that is the VALUE in a debt that makes each and every debt an asset for the banking system.

Indeed, the biggest loans in everyday use are Government Bonds....secured solely on the ability to repay...You may have read a little about this in the press.

The promise to pay back though can be broken through bankruptcy/default, you may have read a little about this in the press.....

Debt to buy aptly as an example a house is taken more lightly as if you dont pay the house can be repossessed and sold to pay off the debt, in the same way the government can sell the shares to pay off the debt, this is different from debt where there is no actual asset bought with that debt. Its not the same and is so imo should not be classed in the same sense to sensationalise a story.

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  • 334 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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