Friday, Aug 04, 2006

Britain's debt crisis deepens

TimesOnline: Personal insolvencies soar

Figures for the three months to June show that personal insolvencies are up 66% from the same period a year ago. With the Bank of England raising interest rates yesterday and most lenders recording sharp growth in bad debts it will l be interesting to see whether this is just the tip of the iceberg and the start of the unravelling of Britain's huge debt will ensue or is it simply that Individual Voluntary Arrangements (IVAs) have become fashionable and a "get out of jail free" card from over-indebtedness?

Posted by denzil @ 01:12 PM (450 views)
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4 Comments

1. Bfskinner said...

not really a comment but more a thought/question.

what will be the likley cost to the economy of people bailing on their debts through IVAs. If the economy is being propped up on debt, and the expectation that the money owed will physically find its way in the the eonomy though loan repayments, what happens when this doesnt happen?

how many, goods, services, jobs (salaries) are dependent on this money being repayed at some point

BFS

Friday, August 4, 2006 02:15PM Report Comment
 

2. Hard Cheese said...

Blame Gordon Brown and the BOE, they let the IR fall so low, only the retards who couldn't think for them selves to borrow didn't amass any debt, unlike the rest of the UK PLC.
Now the chickens are coming back to roost the banks will cut off the cheap credit now, existing borowers will struggle to meet the loan repayments, many will take the easy I don't give a stuff route, UK economy goes into a nose dive, well done new labour!!

Friday, August 4, 2006 02:46PM Report Comment
 

3. Cstanhope said...

Lets all hope that Gordon Brown remains as Chanceller when it all goes South so he can be blamed finally by the rest of the UK public, who unlike the thinking ones among us "Well Done Uncle Tom", could see all along that building an economy on out of control Public Sector spending, overinflated unsustainable house prices and above all a slack monetory policy that caused most brits to get over their head in debt will never work.

Best way to have good solid economic growth cut taxes, slash the jobs of Public Sector jobsworths, stop proping up unprofitable businesses e.g French farmers, and get rid of red tape. Capitalism is good it creates TRUE wealth and jobs by providing products and services that are geniuely needed and wanted.

Friday, August 4, 2006 06:08PM Report Comment
 

4. Dagenham Dave said...

This is like watching a car crash in slow motion. Anyone with half a brain could have predicted this outcome years ago.The trouble is most people don't think for themselves and are prepared to believe a bloke in a suit with a nice accent.

Friday, August 4, 2006 08:45PM Report Comment
 

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