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Boom And Bust Britain, 2006

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Boom and Bust Britain, 2006

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City bonuses hit a record £7.5bn,3,000 workers given at least £1m, Sales of penthouses, fast cars and champagne at all-time high, House repossessions up 70% to highest level since the 1991 crash, Mortgage arrears up 21%, Record 70,000 go bankrupt, a 51% rise

By Philip Thornton, Economics Correspondent and Terry Kirby, Chief Reporter

A stark image of divided Britain was revealed yesterday as it emerged that a record number of people were made bankrupt, even as a tiny elite of City of London bankers were looking forward to £1m-plus bonuses.

The Government's own figures yesterday showed that more than 20,000 people were forced to file for bankruptcy in the three months running up to Christmas after being overwhelmed by their debts. The total of 20,461 was a 51 per cent jump on the previous year and the highest number for a three-month period since records began in 1960. The total for 2005 was almost 70,000, 57 per cent more than 2004.

Families struggling to make ends meet will take little comfort from a report by a leading think tank showing that City traders are set to share a staggering £7.5bn bonus pool after a bumper year for share prices and company takeovers. Some 3,000 people are on track for a seven-figure bonus, the Centre for Economics and Business Research (CEBR) said. Many lenders foreclosing on debts will be owned by the same financial giants that are paying individual employees up to £10m.

"The contrast between the financial situations of these groups of people is shocking," said Vince Cable, the Treasury spokesman for the Liberal Democrats. "While those in the City worry about whether they have chosen the trendiest location for their skiing holiday those recently insolvent will be worrying about how they will put food on the table.

"These figures demonstrate the hollow nature of Gordon Brown's rhetoric on social justice."

Edited by BuyingBear

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Blah, blah, blah... isn't it awful... look at those rich people.... blah... look at the poor people... blah blah blah.

Does this article mention anything at all about ending the banks' now near-total monopoly on creating money which is merely a mechanism to use make-believe wealth to hoover up real, tangible wealth? Does this article ask why private banks own a huge percentage of the nation's housing stock when in the 60s they only owned about 10% of it - that's despite decadse upon decades of people diligently paying off thier mortgages?

Does it ask why families have been duped into paying vast prices for houses as the banks pour mind-boggling of freshly created money into the housing market via ever more insidious, reckless and greedy lending practices?

Does it ask why the banks are allowed to create credit to pump up the prices of housing, while students have to graduate with 10, 15 20k roudn their neck for years and years sapping their buying power?

Why does it give a quote that chastises people for the 'now culture' when the government, business and the banks spend hours and hours and billions and billions encouraging 'consumer confidence' (getting into debt) without questioning the continuous cancerous growth in evermore pointless, undurable, throwaway consumer slop at any cost coupled will pay freezes, layoffs, deskilling, enforced 'flexible' working practices - the only to keep on top of the growing debt burden experienced by consumers and business alike?

Thought not.

Blah, blah, blah... isn't it awful... look at those rich people.... blah... look at the poor people... blah blah blah.

Go back to sleep...

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Blah, blah, blah... isn't it awful... look at those rich people.... blah... look at the poor people... blah blah blah.

Does this article mention anything at all about ending the banks' now near-total monopoly on creating money which is merely a mechanism to use make-believe wealth to hoover up real, tangible wealth? Does this article ask why private banks own a huge percentage of the nation's housing stock when in the 60s they only owned about 10% of it - that's despite decadse upon decades of people diligently paying off thier mortgages?

Does it ask why families have been duped into paying vast prices for houses as the banks pour mind-boggling of freshly created money into the housing market via ever more insidious, reckless and greedy lending practices?

Does it ask why the banks are allowed to create credit to pump up the prices of housing, while students have to graduate with 10, 15 20k roudn their neck for years and years sapping their buying power?

Why does it give a quote that chastises people for the 'now culture' when the government, business and the banks spend hours and hours and billions and billions encouraging 'consumer confidence' (getting into debt) without questioning the continuous cancerous growth in evermore pointless, undurable, throwaway consumer slop at any cost coupled will pay freezes, layoffs, deskilling, enforced 'flexible' working practices - the only to keep on top of the growing debt burden experienced by consumers and business alike?

Thought not.

Blah, blah, blah... isn't it awful... look at those rich people.... blah... look at the poor people... blah blah blah.

Go back to sleep...

There's no pleasing some people. :rolleyes:

Anyway here are some nice quotes from the article:

"The underlying theme is the strain from high debt levels and high debt service payments,"

A spokeswoman for Citizens Advice said: "Our evidence shows that lenders are selling products without properly checking whether the borrowers can afford it."

Mike Gerrard, a personal insolvency expert at Grant Thornton, said: "We are also seeing greater numbers of individuals earning good salaries but borrowing proportionally more than people on lower incomes."

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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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