The Clothes Show

[FreeTrader]

Okay, not my usual sort of post, but I thought I'd let you know...

My daughter's at Uni in the Midlands and she worked at the Clothes Show last year. The pay's lousy, but she gets lots of freebies and discounts on clothes.

She's working again this year, and rang tonight to tell my better half that she was shocked at how quiet it is compared to last year. The owner of her stand had set three assistants on, expecting a busy day, and yet they only had thirty or so customers who actually purchased goods. Last year they took thousands of pounds on the Friday even though it's a slow day compared to the rest.

My daughter's only experienced boom, and she can't quite understand the change in attitude. Last year buyers seemed to disregard both quality and price, just walking around piling stuff up to buy, but this year everyone's far more discriminating.

Of course, it may have just been a bad day, but I'd say the writing is on the wall. We tend to forget that downturns can take quite some time to ripple through the economy. The lady owner of my daughter's stand had obviously not budgeted for depressed sales, and maybe it's only from today that the reduction in her own spending will start.

There have been a number of posts today about debt levels, and we have to remember that the sort of contraction in consumer activity I've mentioned here is occurring at a time when debt growth shows no sign of abating. This is an extremely sobering prospect. Imagine what GDP growth is going to look like when (and I say 'when', not 'if') debt growth finally stalls.

[As an aside, can anyone tell me why the BoE are expecting consumer spending to pick up again next year? Since it seems somewhat obvious that people have less disposable income due the the combination of increased debt, higher taxation and higher living costs, what factors are the MPC expecting to come into play to alleviate the situation?]

[OnlyMe]

[As an aside, can anyone tell me why the BoE are expecting consumer spending to pick up again next year? Since it seems somewhat obvious that people have less disposable income due the the combination of increased debt, higher taxation and higher living costs, what factors are the MPC expecting to come into play to alleviate the situation?]

A gong or another cushy government post.

[FreeTrader]

A gong or another cushy government post.

So cynical...

...and right on the money.

[Guest muttley]

[As an aside, can anyone tell me why the BoE are expecting consumer spending to pick up again next year? Since it seems somewhat obvious that people have less disposable income due the the combination of increased debt, higher taxation and higher living costs, what factors are the MPC expecting to come into play to alleviate the situation?]

There comes a point when people realise it just isn't worth saving.Not for a house,not for a pension.

So have some fun!

[Guest magnoliawalls]

There comes a point when people realise it just isn't worth saving.Not for a house,not for a pension.

And certainly not for their children's futures

[SarahBell]

A gong or another cushy government post.

Speaking of that sort of thing did David Jason get married the day before getting his Sir because if he'd married after his missus wouldn't benefit from his title?

[FreeTrader]

And certainly not for their children's futures

This is one of the saddest aspects of the recent boom. Those board members who have older kids will know that it's not easy to see your children suffer the angst and uncertainty that potential FTBs on this site are experiencing. Although I would never condone my own children buying property at current levels, I can fully understand the reasons why other parents have done so.

So, while it's easy to condemn parents who MEW to give their own child a deposit on a home as being 'muppets', bear in mind that this desire to give your offspring a leg up in life is visceral. It's just unfortunate that a boom that should never have happened is being perpetuated by simple parental instinct.

[New Darker Law]

This is one of the saddest aspects of the recent boom. Those board members who have older kids will know that it's not easy to see your children suffer the angst and uncertainty that potential FTBs on this site are experiencing. Although I would never condone my own children buying property at current levels, I can fully understand the reasons why other parents have done so.

So, while it's easy to condemn parents who MEW to give their own child a deposit on a home as being 'muppets', bear in mind that this desire to give your offspring a leg up in life is visceral. It's just unfortunate that a boom that should never have happened is being perpetuated by simple parental instinct.

I see where you are coming from, but you are giving them more of "leg up" in life if you don't "help" them in this way.

Just my opinion.

NDL

[dunroamin]

but I'd say the writing is on the wall.

in the absense of BoredTrainBuider i am on HPC cliche watch.

"the writing is on the wall"

i'm gonna call that one!!