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RichM

Hallelujah! Tell It Brother

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http://www.telegraph.co.uk/news/main.jhtml....xml&page=1

The tag line sums it up nicely:

Some great stuff in here on the credit crunch - apparently it's already started.

A great bear article. Could have been written by one of us.

It's shocking but at the same time so funny that people just keep on borrowing and spending what they don't have...

Are any of them aware that they might have to repay some of the money one day? LOL!!!

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I've just had a brainwave but I don't want anyone to laugh at the idea.....

Wouldn't it be good for people to spend what they have and to save some money for a rainy day fund... :blink:

I think it's a good idea anyway as that's how I try to live :)

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In a debt based economy a credit crunch = huge recession. No way out of it sadly.

Especially if interest rates return to the 9% avarage that they have been since the 1970s. A buried statistic to turn many recent home buyers face white.

Hpc member 'Pluto' pointed out that home owners were sitting ducks for goverments to raise taxes, as the gov's income falls from industry in a recession. Another good reason to rent & wait.

Edited by Saving For a Space Ship

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http://www.telegraph.co.uk/news/main.jhtml....xml&page=1

The tag line sums it up nicely:

Some great stuff in here on the credit crunch - apparently it's already started.

A great bear article. Could have been written by one of us.

The government should sned that to every home in the country.

Wonder at what percentage of GDP there is no way back even by cutting down.

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http://www.telegraph.co.uk/news/main.jhtml....xml&page=1

The tag line sums it up nicely:

Some great stuff in here on the credit crunch - apparently it's already started.

A great bear article. Could have been written by one of us.

Gordon's watch as Chancellor has perhaps been the most disastrous in British history. His "accomplishments" have exceeded the wildest dreams of William Wallace (Braveheart).

1. Systematic destruction of the industrial manufacturing base.

2. Debt mountain that places the UK 2nd in the world for external debt and perhaps first on a per-capita basis.

3. Property inflation and pricing out of millions.

4. Government deficit takes poll position in Europe.

5. Money supply exceeds 13%.

6. Unemployed at record numbers.

7. Unprecedented levels of immigration.

8. Record Tax with "tax free" day later in the year than at any time in 25 years.

9. Record number of Scots in power or waiting in the wings.

Add all of that together and you get a miracle. A miracle its lasted so long.

And as if to add insult to injury the author of such a catalog of errors is about to ascend, unelected and unopposed, to de facto head of state bypassing the usual western protocol of first having a democratic election.

The true state of the nation summarised in the Times today:

http://business.timesonline.co.uk/tol/busi...icle1942163.ece

Edited by Realistbear

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I've just come back from France, where according to our government has real economic problems. However, I'm not sure it's as bad as people say it is. The French have very little access to credit, such things as credit cards are virtually unheard of. You pay for everything by cheque or debit and any deficit must be balanced at the end of the month. Maybe the UK economic miracle is being held up by debt, debt that in a lot of cases is simply not affordable.

Personally I'd prefer to live in France, at least people are happy and not worried about interest rates.

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:D

That picture looks like it could make a good tv show.

5 people in big time debt go on big brother/ I'm a celeb type tv show. They are made to eat bulls testicles, spiders and the like, then they are starved for 2 days, they have to live in tents etc. And then the winner gets their debts cleared.

It would show the nation that getting into debt is not a good thing.

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People could use the debt mountain to there advantage, mass non payment...it would cripple the banks and they would never come to the UK ever again. :rolleyes:

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Guest Charlie The Tramp
James Callaghan, a civil servant in Darlington is typical of those discovering the painful new reality: "If we stick with our current mortgage lender, our mortgage rate will jump from 4.94 per cent to 6.75 per cent." In extreme cases, the repayments on a £400,000 interest-only mortgage would increase from about £1,400 a month to about £2,000, up by 43 per cent.

Who on Earth would take out a £400k IO mortgage. :blink:

Interest paid over 25 years at a mortgage rate of 7% = £699,900 and 12% = £1.2 million.

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Jumping off this money merry-go-round is a worry for us all. Georgina Taylor, a European strategist at Goldman Sachs, the investment bank, concludes: "The typical household financial position has weakened dramatically in the past year or so. That has quite a feed through to consumer spending, which means the UK economy is vulnerable - the great conditions we've had in recent years are about to change."

No point trying to hide or deny it now. We are in a ******ing mess thanks to policies designed to bring short term popularity to the governing party. They are either guilty of criminal incompetence or cynical betrayal - which ever it is I hope those responsible are made to pay.

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typical of those discovering the painful new reality

I dared to suggest before that feckless, featherbedded public sector boneheads ignorant of (and shielded from) global economic trends and realities more local to home were major players in BTL and the wider bubble.

Maybe "James Callaghan, a civil servant " is more typical in more ways than the article suggests.

Edited by OnlyMe

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This is a good article. sums up nicely what HPCers have been saying for a while.

The boom in fixed rate deals has masked the effects of IR hikes, in the short term. Gordies economic turkeys are going to come home to roost - very soon. I don't know whether to be happy or sad

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Many lenders and financial institutions are going to fold in the coming credit crunch. It's happening in America as we speak. What happens to someone if their mortgage provider goes bust? What happens to the debt they owe? Excuse my ignorance ;)

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Many lenders and financial institutions are going to fold in the coming credit crunch. It's happening in America as we speak. What happens to someone if their mortgage provider goes bust? What happens to the debt they owe? Excuse my ignorance ;)

I think that someone buys the debt.....or something (actually I don't know)

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Many lenders and financial institutions are going to fold in the coming credit crunch. It's happening in America as we speak. What happens to someone if their mortgage provider goes bust? What happens to the debt they owe? Excuse my ignorance ;)

You get a free house. :lol::lol::lol:

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IMO it's exactly the same here as the US situation with regards to expectations of future rate cuts.

Reports out there (CBI, property VIs, economists etc) all go along the lines "Interest rates will be falling towards the end in 2008".

http://www.yieldcurve.com/marketyieldcurve.asp

How does an MPC that's seen as weak slow down an economy with £1,300,000,000,000 in debt ?

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Many lenders and financial institutions are going to fold in the coming credit crunch. It's happening in America as we speak. What happens to someone if their mortgage provider goes bust? What happens to the debt they owe? Excuse my ignorance ;)

Not at all, I pondered the exact same question down the pub with a mate recently. What does hapen if a mortgage provider goes bust? I think this has been asked on here before but my memory's getting worse.

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