Monday, Aug 07, 2006

Tell me something I don't know

Guardian: The hangover after too much punch

Nice to see someone equating over-indebtedness with sensitivity to IRs, and some nice numbers:

"The number of people going bust has reached record levels; the figure is on course to hit 100,000 this year for the first time."

And that's BEFORE IRs went up!!

Posted by inbreda @ 09:30 AM (447 views)
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4 Comments

1. sebastian said...

Haha:

"The surprising thing about the Bank of England's decision to raise interest rates was that it was a surprise."

Monday, August 7, 2006 10:24AM Report Comment
 

2. inbreda said...

In other words Sebastian, everyone realises that IRs should rise, everyone recognised the reasons they should rise, but nobody expected the BoE to have the guts to do what was required.

Monday, August 7, 2006 11:17AM Report Comment
 

3. monty said...

What I'd like to know is just what proportion of those who have gone bust are IVAs versus declared bankrupt. As many articles preceeding this one have pointed out, the introduction of IVAs (many marketed as debt consolidation) has made it that much easier to go down the "bust" route without the stigma or tarnish of bankruptcy. What really amazes me is that someone like Barclays are able to write off one billion smackers from their Barclaycard business alone and still post a 20 percent increase in profits!!!! I can only guess that it must have something to do with 26 percent APR - so much for cheap debt.

Monday, August 7, 2006 11:49AM Report Comment
 

4. Sloth said...

monty,

Banks make their money by getting first dibs on money created "ex nihilo" and then lending it out with interest. These bank profits are entirely what you would expect before an debt implosion.

Monday, August 7, 2006 01:43PM Report Comment
 

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