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olde guto

The Debt Business - Radio 4 8Pm 25Th August

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Adair Turner argues household debt could lead the UK to another financial meltdown, today 8pm Radio 4 http://www.bbc.co.uk/programmes/b066w659

Was still half asleep when he was being interviewed about this on Radio 4 but it does sound pretty bearish.


Leading economist and former head of the Financial Services Authority, Adair Turner explores the implications of the current levels of household debt in the UK.

While the UK economy recovers, many consumers are getting further into debt. We hear from some of them, and from the debt charities trying to help, who describe the impact this is having on the UK's fiscal and mental health.

But Lord Turner claims the ramifications reach much further than the individual. When growth increasingly depends upon borrowing in order to fuel consumer spending, he argues, the whole economy is rendered more vulnerable to collapse.

He explores the potential impact of rising interest rates - both on the individuals in debt and overall economic stability. Professor Atif Mian, co-author of The House of Debt, argues that excessive mortgage debt was the key cause of the recession after 2008, rather than the banks' inability to lend more money.

Lord Turner discusses his own radical suggestions for change with two eminent colleagues - William White of the OECD and Harvard Professor Ken Rogoff, former chief economist of the IMF.

Edited by olde guto

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Adair Turner argues household debt could lead the UK to another financial meltdown, today 8pm Radio 4 http://www.bbc.co.uk/programmes/b066w659

Was still half asleep when he was being interviewed about this on Radio 4 but it does sound pretty bearish.

The big question is, what do you do about it.

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....unsecured debt is good for the economy....once it is spent the seller of goods doesn't care if it is paid back or not....why, debt pays the bills and the wages....an unsecured debtor therefore has nothing at all to lose....only perhaps not having access to debt for a few years, a small price to pay for some, LTD is another anomaly ......there are no longer debtors jails because debt whether paid or not is good for the economy....the ones who do pay it back pay a premium for those who don't.....such is life. ;)

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