Bearfacts Posted July 23, 2006 Share Posted July 23, 2006 (edited) As I was waiting for my bag of chips in the cafe I picked up the only sunday paper they had lying around - The Mail ( I promise I would not read it otherwise) anyway tucked away in the financial section, in an article on debt, was a graph showing average household debt v average household income after tax. In 1988 just before the last crash it stood at about 90%, the figure now is touching 160% - scary stuff. Of course I realise that the cost of servicing that debt is lower now but god help us all when rates go up - we are stuffed. Edited July 23, 2006 by Bearfacts Quote Link to comment Share on other sites More sharing options...
dnd Posted July 23, 2006 Share Posted July 23, 2006 The only thing that will stop debt servicing is higher IR - the BOE will not allow that to happen - they'd rather let inflation continue to rise as we spend more easily borrowed money Quote Link to comment Share on other sites More sharing options...
backtoparents Posted July 23, 2006 Share Posted July 23, 2006 As I was waiting for my bag of chips in the cafe I picked up the only sunday paper they had lying around - The Mail ( I promise I would not read it otherwise) anyway tucked away in the financial section, in an article on debt, was a graph showing average household debt v average household income after tax. In 1988 just before the last crash it stood at about 90%, the figure now is touching 160% - scary stuff.Of course I realise that the cost of servicing that debt is lower now but god help us all when rates go up - we are stuffed. Well, if rates go up..... btp Quote Link to comment Share on other sites More sharing options...
Justice Posted July 23, 2006 Share Posted July 23, 2006 it's quite simple ! Rates go up or the £ goes down and then see how much the cost of petrol comes in at. things could get so bad that we need to go to war soon Quote Link to comment Share on other sites More sharing options...
OnlyMe Posted July 23, 2006 Share Posted July 23, 2006 Japan reached 150/155% ish. To beat that craziness is quite an achievement. Quote Link to comment Share on other sites More sharing options...
Guest mattsta1964 Posted July 23, 2006 Share Posted July 23, 2006 Japan reached 150/155% ish. To beat that craziness is quite an achievement. It took 10 years for Japan to beat deflation, a country with masses of savings and a manufacturing base that still makes some of the best products in the world The British?????? We couldn't manufacture a coathanger for profit We are totally and utterly stuffed In 10 years, the UK will be a 3rd world country Quote Link to comment Share on other sites More sharing options...
expatowner Posted July 24, 2006 Share Posted July 24, 2006 As I was waiting for my bag of chips in the cafe I picked up the only sunday paper they had lying around - The Mail ( I promise I would not read it otherwise) anyway tucked away in the financial section, in an article on debt, was a graph showing average household debt v average household income after tax. In 1988 just before the last crash it stood at about 90%, the figure now is touching 160% - scary stuff. Of course I realise that the cost of servicing that debt is lower now but god help us all when rates go up - we are stuffed. Any chance of recreating the graph for us? Quote Link to comment Share on other sites More sharing options...
OnlyMe Posted July 24, 2006 Share Posted July 24, 2006 Add a couple of years and a little snow to the peak of this one Any chance of recreating the graph for us? Quote Link to comment Share on other sites More sharing options...
expatowner Posted July 24, 2006 Share Posted July 24, 2006 Add a couple of years and a little snow to the peak of this one Many thanks for that OnlyMe, Do you expect the graph to return to around the "100" mark in a year or two or do you expect there to a cooling-off period like between 91 to 97 at the level it is at currently? Quote Link to comment Share on other sites More sharing options...
apom Posted July 24, 2006 Share Posted July 24, 2006 It took 10 years for Japan to beat deflation, a country with masses of savings and a manufacturing base that still makes some of the best products in the world The British?????? We couldn't manufacture a coathanger for profit We are totally and utterly stuffed In 10 years, the UK will be a 3rd world country Actually. I remember a story from a few years ago where Elton John was hired by one of the richest men in the UK to sing at his wedding. The man made coat hangers. I cannot remember much more, and google is letting me down. but we can't make anything else for profit.. Hell, we cost so much to make things here even the french (peugeut) are taking their factories away... Quote Link to comment Share on other sites More sharing options...
i_godzuki Posted July 24, 2006 Share Posted July 24, 2006 (edited) Japan reached 150/155% ish. To beat that craziness is quite an achievement. In Japan, I think you're thinking of government debt. Households assets in Japan were 1,508.7 trillion yen in 2005 or about $14 trillion--more than $100,000 per man, woman and child. Edited July 24, 2006 by i_godzuki Quote Link to comment Share on other sites More sharing options...
grey shark Posted July 24, 2006 Share Posted July 24, 2006 (edited) . Edited July 24, 2006 by grey shark Quote Link to comment Share on other sites More sharing options...
OnlyMe Posted July 24, 2006 Share Posted July 24, 2006 In Japan, I think you're thinking of government debt. Households assets in Japan were 1,508.7 trillion yen in 2005 or about $14 trillion--more than $100,000 per man, woman and child. Hi, See page 4. http://www.rba.gov.au/PublicationsAndResea...3/bu_0303_1.pdf, personal debt is the one I'm referring to, this data seems slightly out of tune with the source that I'm sure stated 150% personal debt / income being the peak. Notice how that level/ratio of debt has stuck around. Quote Link to comment Share on other sites More sharing options...
i_godzuki Posted July 24, 2006 Share Posted July 24, 2006 Hi, See page 4. http://www.rba.gov.au/PublicationsAndResea...3/bu_0303_1.pdf, personal debt is the one I'm referring to, this data seems slightly out of tune with the source that I'm sure stated 150% personal debt / income being the peak. Notice how that level/ratio of debt has stuck around. I stand corrected! Apologies and thanks. I guess it makes sense that somewhere people have much larger personal assets, they'll also have (relative to income) larger personal debt. Presumably the main factor in this will be mortgage debt. It would be very interesting to see the 2002-2006 figures. Quote Link to comment Share on other sites More sharing options...
smiley Posted July 24, 2006 Share Posted July 24, 2006 When Governments borrow this amount - more than half of GDP over five years - you expect them to engineer massive infrastructure improvements. That's what the IMF would demand of third world countries - better roads, a water system, schools. And us? For us, it's not been the government that's been borrowing, but consumers. And not borrowing to invest, but to sell houses to one another. In place of investment, we have piled on the debt for a massive pyramid-roundabout thing! Quote Link to comment Share on other sites More sharing options...
Keith.G Posted July 24, 2006 Share Posted July 24, 2006 The British?????? We couldn't manufacture a coathanger for profit We are totally and utterly stuffed In 10 years, the UK will be a 3rd world country Yeh but ..no but ..we always have a massive surplus in the service sector which bails us out from having a negative balance of payments.. ooops recently even that figure has slipped into the red.. maybe we are in a spot of bother.. Quote Link to comment Share on other sites More sharing options...
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