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geneer

The Debt Crunch!

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Theres lots of mention of the coming "debt crunch" on both this site and others element of the Media.

The general concensus is that it will be a bad thing - with an obvious bias towards the HPC side on the forum.

But hows it all going to unravel?

What will be the impact on our culture and society?

How will it effect us as individuals?

Predictions please!

Edited by geneer

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Theres lots of mention of the coming "debt crunch" on both this site and others element of the Media.

The general concensus is that it will be a bad thing - with an obvious bias towards the HPC side on the forum.

But hows it all going to unravel?

What will be the impact on our culture and society?

How will it effect us as individuals?

Predictions please!

We won't see the worst of it for 2-3 decades is my guess. There will be a relatively small number of seriously overstretched people who go pop now, but the real effects are long term. It is the 25-45 age group, those who have bought heavily into 'property is my pension' and easy credit who will hurt the most, but they won't know it until they come to retirement age. We may end up with a whole generation where a huge number find it hard to even scrape by in old age.

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This has been talked about often in other threads. Sadly, two things that I see rising dramatically in the coming years are:

1. Affairs

2. Divorce

3. Suicide

A generation who has known nothing but boom times, full employment and a 'feelgood factor' will come face to face with mass unemployment, despair and a lack of hope and a malaise that will sweep across the country. For those of us who went through the 1980s it will be nothing new.

I do genuinely fear for all those men out there who are now maxing out on mortgages and credit debt as a result of pressure from their wives only to find, as many of them will, their 'loved one' walkin out on them when good times turn bad. I think in the next 10 years there will be an awful lot of bitter, angry divorced women seeking a new man - God help any man who bumps into one. And on that nice Valentine's Day note...

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Well when you owe someone money you basically owe them work.

I think I will explain this with shovels and digging

Imagine if you had zero cash but excellent digging skills

Imagine you require a shovel to do some work...

You go to the shovel bank and say "Could you lend me a shovel, I will dig some holes for you for 25 years, for your trouble"

The shovel bank may well oblige.

(You have secured a loan)

If the shovel bank decides it wants a lot of holes digging it will lend anyone a shovel not just the best diggers, some people may even be unfit to dig and maybe some people will lie about their ability to dig.

Now, if a few people start taking the shovels and refusing to dig any holes for the shovel bank (failing to repay the bank) the shovel bank will become a bit peeved and is less likely to lend further shovels to new diggers, relying on the trusty diggers they already have. (the bank tightens lending)

The shovel bank may even request shovels back from diggers they feel are struggling, weak or unfit to dig and I expect the shovel bank will be very hard on those who lied about their digging ability.

Basically the shovel bank is happy to lend as many shovels as it can until the number of people borrowing shovels and failing to dig for the shovel bank, begins to cost the shovel bank, or upset those digging for the shovel bank honestly.

The shovel bank has the ability to adjust how much of the digging must be done for them and how much of the digging you can do for yourself (in the form of rates).

So the shovel bank has two basic powers of control; they can decide how many shovels to distribute, and how much digging they require in return.

The shovel bank controls the supply and the shovel bank has a fairly good control over the demand too. Perfect, for the shovel bank.

Note the shovel bank is not in the business of handing out free shovels.

Of course you could just buy a shovel out right but you would have to dig with your hands for a while. Which isn’t pretty, and those with shovels tend to look down on you.

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When it does happen i hope to be as far away from this country as possible.

This country doesn't deserve my tax, i will give it to a country more responsible than this one.

This country is becomming the laughing stock of the world.

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This country is becomming the laughing stock of the world.

Agreed. The only people who believe the BS Brown and his mates are spewing out are the ones with huge mortgages.

We may end up with a whole generation where a huge number find it hard to even scrape by in old age.

The smart money will be investing in dog food companies.

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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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