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Realistbear

Bankruptcy Reaches Record Levels

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http://uk.biz.yahoo.com/05112005/17/bankru...ns-control.html

More news for the VIs to spin.

But the dramatic problem is recognized by business leaders:

"Elsewhere in the UK, personal bankruptcies are at their highest level in four decades, with business leaders blaming Britain's credit card culture and opposition politicians blaming the slowing economy."

REALITY:

"Given the
depressed state of the housing market
, coupled with the prospect of a slowing economy and high levels of credit card debt we are facing an extremely difficult two to three years. Many people will find themselves with years of financial problems ahead of them and are choosing bankruptcy as a means of escape."

TORY leaders pinpoint the problem:

David Willetts, the shadow trade and industry secretary, said the problem was with the economy. "Too much of the economy's growth over the past few years was fuelled by personal borrowing and
now families are paying the price for Gordon Brown's mismanagement of the economy
," he said

As things are at their worst for 40 years the prospects for a November bounce in HPI do not look so good.

:D

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Another thing. For around 5 yrs now Graduates have been leaving their course with ever increasing debts around their neck. Tuition Fees of £1,ooo's added from next September!

Coupled with the fact that MOST graduates can only find jobs with mediocre pay to start with, their debt will be with them even longer.

There is a growing backlash aginst being in debt as seen in some recent articles - so most will be paying off student loans before taking on anything else.

Could all these people get on the housing ladder @ the levels we have today?

We will probably see a complete stalling of the housing market for years and even then only after prices drop significantly.

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This is Money headline says bankruptcies at 200 a day now. Extrapolating and including non working days, I have neglected excelleration, thats a YOY of 73,000 by this time next year. :)

Including exceleration at an exponential rate as appears trend, blimey the skies the limit.

Game on!

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Did you miss the figure of 95% for the increase in VIA's in a year. These VIA's are effectively bankrupt, thats the reality of thier position. There will be blood everywhere. :(

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This is Money headline says bankruptcies at 200 a day now. Extrapolating and including non working days, I have neglected excelleration, thats a YOY of 73,000 by this time next year. :)

Including exceleration at an exponential rate as appears trend, blimey the skies the limit.

Game on!

Thats a massive 0.12% of the population of the UK, alarming!

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It's too late now.

The government can't do anything to restrict lending practices because this would cause an even greater credit crunch. And they would be blamed to boot.

It is always too late by the time a bubble has inflated.

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I don't think it's worth getting too excited about - although it is a problem that is sure to rear it's head over the coming years it is currently tiny. Alot of the figures for increases are given in percentages, this is a little misleading IMO. Remember that 3 is a 50% increase over 2 ;)

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Guest Charlie The Tramp

I don't think it's worth getting too excited about - although it is a problem that is sure to rear it's head over the coming years it is currently tiny. Alot of the figures for increases are given in percentages, this is a little misleading IMO. Remember that 3 is a 50% increase over 2 ;)

You investment bods live in your own dream world don`t you? <_<

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This is Money headline says bankruptcies at 200 a day now. Extrapolating and including non working days, I have neglected excelleration, thats a YOY of 73,000 by this time next year. :)

Including exceleration at an exponential rate as appears trend, blimey the skies the limit.

Game on!

I thought it was a good time to pull this thread up again in light of the icWales: 'Post-Christmas debt crises looms' headline.

Link

http://icwales.icnetwork.co.uk/0300busines...-name_page.html

I got it wrong then, if 20,000 bankruptcies are expected in Q1 2006 then total for 2006 would be 80,000 neglecting exceleration. Next year will be the big bust up year I think. This neglects the VIA's which as I have said is a nicer word for bankruptcy. There are more VIA's than bankruptcies as well.

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I have no symapthy for anyone who accumulates 20K, 30K, 40K debt on credit.

Just because you have a credit limit of 10K on each card doesn't mean you should use it all.

For god's sake - how did these muppets ever envisage clearing that debt other than through MEW or bankruptcy?

There's no exscuse is there?

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I have no symapthy for anyone who accumulates 20K, 30K, 40K debt on credit.

uh. but uhh. its not MY fault......i just LOVE spending.

then you have the homeowners who bought pre-boom spending like beckham knowing they can shift the repayment back to some sap whos going to buy their house for double. then they str for three years before coming back in to buy the same again for half ???

or my mates mum who vought for 45k in 97 and has it sat on the market for 1.5yrs at 140k.

Q. why dont you lower the price ? "oh, im not giving it away..."

heheheheee

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I thought it was a good time to pull this thread up again in light of the icWales: 'Post-Christmas debt crises looms' headline.

Link

http://icwales.icnetwork.co.uk/0300busines...-name_page.html

'I got it wrong then, if 20,000 bankruptcies are expected in Q1 2006 then total for 2006 would be 80,000 neglecting exceleration. Next year will be the big bust up year I think. This neglects the VIA's which as I have said is a nicer word for bankruptcy. There are more VIA's than bankruptcies as well.'

Replying to my own post from December 17th when 20,000 were expected to go bust in Q1 2006. We now have that many in Q4 2005 officially. The Q1 figure is going to be very much higher and I now predict at least 25,000 in Q1 2006 making for a annual rate for 2006 of 100,000 a year neglecting acceleration. In reallity its going to be a lot higher than that. This really is going to be one hell of an upset.

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For god's sake - how did these muppets ever envisage clearing that debt other than through MEW or bankruptcy?

There's no exscuse is there?

They're gonna pay it off through debtbuster Loans & buy a Mew Car at the same time!, Fnar,Fnar!

"There's a hole in my Bucket, Delilah,

Delilah................"

Edited by A Fool & His Borrowed Money

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[/b]

Replying to my own post from December 17th when 20,000 were expected to go bust in Q1 2006. We now have that many in Q4 2005 officially. The Q1 figure is going to be very much higher and I now predict at least 25,000 in Q1 2006 making for a annual rate for 2006 of 100,000 a year neglecting acceleration. In reallity its going to be a lot higher than that. This really is going to be one hell of an upset.

Things are happening faster than previously thought. I believe we have CRASH MOMENTUM and its unstoppable even if the BoE reduce interest rates to Japanese levels.

These kinds of headlines show desparation is setting in:

http://news.bbc.co.uk/1/hi/business/4653152.stm

Edited by Realistbear

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For god's sake - how did these muppets ever envisage clearing that debt other than through MEW or bankruptcy?

I wouldn't call MEW clearing your debt, just robbing peter to pay paul ;)

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"I'm not giving it away" is not the response you get when a Trustee is dealing with your property.

I just sold a flat initially valued at £125,000 for £85,000 as that was what the market would pay. Took me a year to get to completion from the inital placing of the property with the estate agent. If the property wasn't sold in a month I simply dropped the price. Repeat month after month until sold.

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I laughed at that article yesterday as I read it in that otherwise excellent newspaper "The Business".

Mervyn King's famous phrase: "House prices are a matter of opinion. Debt is real" sprang to mind.

its amazing how many bulls read that phrase..

read it and dismiss it..

the man with his hand on the economies pulse and the only man really with any power to control its direction..

and he has been shouting the odds against the market for ages..

a bulls reply..." but the halifax said.. or this VI said... blah....."

seriously.. what rot..

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a bulls reply..." but the halifax said.. or this VI said... blah....."

seriously.. what rot..

During the dot-com phase the bulls said Warren Buffett had lost his marbles, unable to understand the "new paradigm".

I remember reading in 2000 that he was buying paint, brick and carpet companies, which others scorned.

Well it turned out that he understood the "new paradigm" far better than most.

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http://uk.biz.yahoo.com/05112005/17/bankru...ns-control.html

More news for the VIs to spin.

But the dramatic problem is recognized by business leaders:

"Elsewhere in the UK, personal bankruptcies are at their highest level in four decades, with business leaders blaming Britain's credit card culture and opposition politicians blaming the slowing economy."

REALITY:

"Given the
depressed state of the housing market
, coupled with the prospect of a slowing economy and high levels of credit card debt we are facing an extremely difficult two to three years. Many people will find themselves with years of financial problems ahead of them and are choosing bankruptcy as a means of escape."

TORY leaders pinpoint the problem:

David Willetts, the shadow trade and industry secretary, said the problem was with the economy. "Too much of the economy's growth over the past few years was fuelled by personal borrowing and
now families are paying the price for Gordon Brown's mismanagement of the economy
," he said

As things are at their worst for 40 years the prospects for a November bounce in HPI do not look so good.

:D

The UK debt problem is absolutely catastrophic....... it is REALLY serious.... It is like a massive crash in slow motion...

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Things are happening faster than previously thought. I believe we have CRASH MOMENTUM and its unstoppable even if the BoE reduce interest rates to Japanese levels.

If IRs are reduced then borrowing becomes even more attractive! If you're of that mindset anyway.

Maybe huge IRs would stop people borrowing but not the other way round.

How long til the next announcement?! B)

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Did you miss the figure of 95% for the increase in VIA's in a year. These VIA's are effectively bankrupt, thats the reality of thier position. There will be blood everywhere. :(

Sorry, whats VIA?

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Voluntary insolvancy arrangement or somesuch. I think its where they freeze the interest and you only pay back a nominal amount for a while. Try looking on www.moneysavingexpert.com

Go to the forums and theres a debt section there.(lots of threads about bankruptcies I see). Or maybe the citizens advice bureau website would have some more info.

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  • 337 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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