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Realistbear

Telegraph: Rate Rise Will "push Some People Over The Edge"

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http://www.telegraph.co.uk/news/main.jhtml...04/nrates04.xml

Home owners facing debt crisis as Bank raises rates

By Rosie Murray-West and Edmund Conway

(Filed: 04/08/2006)

Home owners were put under increased financial pressure yesterday when the Bank of England unexpectedly raised interest rates...../
The increase follows a series of rises in the price of household fuel and council tax which has eroded family incomes. Electricity and gas charges have risen by 28 per cent in the past year, petrol prices by 12 per cent and water charges are up by five and a half per cent....../
Louise Brittain, of the accountancy firm Baker Tilly, said the quarter point rise would be "quite sobering for people".
"They thought it was never going to happen and now it has. This will push some people over the edge."
She predicted that the number of personal insolvencies per year would now rise to 100,000.
In a further sign of the country's growing debt crisis, figures to be published by the Insolvency Service today are expected to show that a record 27,000 people went into insolvency between April and the end of June.
Barclays became the latest bank to issue a warning that its customers were struggling to pay their bills....../
Malcolm Hurlston, the head of the Consumer Credit Counselling Service, said the big banks must take some blame for the borrowing crisis.
"We see people who have six cards from the same lender sometimes," he said. "These bad debts make it look as if they have made some mistakes."
Miss Brittain said:
"It serves the big banks bloody right."
....../
Mervyn King,
the governor of the Bank of England, had indicated this year that he was worried by an overheating housing market as well as growing bankruptcies.
He said: "Relative to average earnings or incomes, or anything else you could look at, house prices do seem remarkably high.''
......../

A shattering indictment of Gordon's entire HPI-MEW driven "Miracle Economy."

And now Gordon wants to ascend to No. 10 as a reward for his debacle? :blink:

http://uk.biz.yahoo.com/04082006/140/bankr...-levels-uk.html

Friday August 4, 07:42 AM

Bankruptcy Hits Record Levels In UK
Figures out today are expected to show a record number of people in England and Wales went bankrupt between April and June. The number is expected to be around 27,000 - the highest ever and well above the 15,645 for the same quarter last year. After 23,351 insolvencies in the first quarter, there are predictions the eventual figure for personal bankruptcies this year could reach 100,000.
Edited by Realistbear

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A shattering indictment of GHordon's entire HPI-MEW driven "Miracle Economy."

And now Gordon wants to ascend to No. 10 as a reward for his debacle?

Totally agree!

I cannot decide whether Gordon is too conceited to recognise what a mess he has made or whether blind ambition has motivated him to wreck the economy. With each passing day however, more poisons are seeping out of the mud. I suspect that Tony's decision to keep him on as chancellor has a hint of malice. It is the political equivalent of tying a dead bird round a cat's neck.

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Totally agree!

I cannot decide whether Gordon is too conceited to recognise what a mess he has made or whether blind ambition has motivated him to wreck the economy. With each passing day however, more poisons are seeping out of the mud. I suspect that Tony's decision to keep him on as chancellor has a hint of malice. It is the political equivalent of tying a dead bird round a cat's neck.

:lol::lol::lol:

nice one!

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I've been reading the Torygraph's coverage this morning - its truly amazin how the news is being portrayed as some renegade action by the crazy mavericks at the BoE.

The overwhelming mood still seems to suggest it's a temporary move that will be reversed. Surely that would make the MPC look even worse though?

I guess the journalists have large mortgages too, that they can barely service. People really need to get used to the idea that the sanguine nature of borrowing is OVER - and fast.

they seem to be implying that the decision was a surprise one too. I guess that they just weren't listening. Same goes for the "markets" - I think Merv has been issuing warnings for a while - they just chose not to listen.

Consider it a wake up call B)

Edited by Fancypants

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I've been reading the Torygraph's coverage this morning - its truly amazin how the news is being portrayed as some renegade action by the crazy mavericks at the BoE.

The overwhelming mood still seems to suggest it's a temporary move that will be reversed. Surely that would make the MPC look even worse though?

I guess the journalists have large mortgages too, that they can barely service. People really need to get used to the idea that the sanguine nature of borrowing is OVER - and fast.

they seem to be implying that the decision was a surprise one too. I guess that they just weren't listening. Same goes for the "markets" - I think Merv has been issuing warnings for a while - they just chose not to listen.

Consider it a wake up call B)

"I guess the journalists have large mortgages too, that they can barely service. People really need to get used to the idea that the sanguine nature of borrowing is OVER - and fast."

Serves the bastardos right.....

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I cannot decide whether Gordon is too conceited to recognise what a mess he has made

ditto Blair.

On the crisis in Lebanon : "My job is to sort this out." (er, isn't this how this all started, p!ssing around in the biz of other countries? I thought he was UK PM once... silly me!)

On leaving Prescott in charge : "People should know I'm always on hand." (Super-Blair to the rescue!)

Edited by Sledgehead

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The overwhelming mood still seems to suggest it's a temporary move that will be reversed. Surely that would make the MPC look even worse though?

Yes. Took them a year to go from a cut to a raise, I can't see them cutting again in less than a year... and more likely we'll see a couple more raises in that time instead.

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It is the political equivalent of tying a dead bird round a cat's neck.

Instead of the cross, the Albatross

About my neck was hung.

The Rime of the Ancient Mariner, Samuel Taylor Coleridge

[Editted after reconsidering that you may well have meant that the economy is to Gordon as dead bird is to cat, rather than vice-versa]

Edited by Sledgehead

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  • 302 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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