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Realistbear

Banks Warned Over Family Debt

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http://www.thisismoney.co.uk/credit-and-lo...9&in_page_id=62

Banks warned over family debt

Becky Barrow, Daily Mail

27 January 2006 SPIRALLING debt is pushing an ever-growing number of families to breaking point, the City's watchdog has warned.

There are signs of 'growing distress' among consumers as they struggle to cope with debt totalling £1.1trillion, said the Financial Services Authority.
In a thinly-veiled threat, it warned banks to be more careful about the amount of money that they lend - or risk getting themselves and their customers into serious trouble.
The startling warning came as it was revealed that:
• Individuals declaring themselves insolvent have risen 95%;
• Bankruptcies are up by nearly a third;
• Home possession orders have jumped 66% and repossessions 47%;
• The average personal debt of visitors to advice charities has topped £30,000.
Higher mortgage repayments are also hitting thousands of homeowners who took out cheap two-year, fixed-rate mortgages with interest repayments as low as 3.5% in 2003.

And 2006 is going to see continuing HPI? I somehow do not think so.

Edited by Realistbear

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RealistBear,

What you seem to forget is, Sir John Gieve the new deputy governor of the BoE, thinks its nothing to worry about!!

Rates are going down down down (if he has his way) - and he'll use this as an excuse.

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RealistBear,

What you seem to forget is, Sir John Gieve the new deputy governor of the BoE, thinks its nothing to worry about!!

Rates are going down down down (if he has his way) - and he'll use this as an excuse.

Hello sterling crash, goodbye miracle economy!

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Guest magnoliawalls

The banks really need to wake up...

They are putting some risky loans into their portfolios

Their willingness to do this makes me suspect that the banks are not the ones carrying the risk.

Are mortgage backed securities bundled together and sold on to other "investors"? If so, is there any way of finding out who owns them? If it is institutional investors like pension funds this house price crash could be devastating for those who sensibly saved for their retirement.

"There are four ways in which you can spend money. You can spend your own money on yourself. When you do that, why then you really watch out what you’re doing, and you try to get the most for your money. Then you can spend your own money on somebody else. For example, I buy a birthday present for someone. Well, then I’m not so careful about the content of the present, but I’m very careful about the cost. Then, I can spend somebody else’s money on myself. And if I spend somebody else’s money on myself, then I’m sure going to have a good lunch! Finally, I can spend somebody else’s money on somebody else. And if I spend somebody else’s money on somebody else, I’m not concerned about how much it is, and I’m not concerned about what I get. And that’s government. And that’s close to 40% of our national income." Milton Friedman, Fox News interview 2004

Seems to me that quote could apply to all kinds of institutional investors...

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  • 301 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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