Monday, August 7, 2006

Tell me something I don’t know

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 (488 views)
Please complete the required fields.



4 thoughts on “Tell me something I don’t know

  • Haha:

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

    Reply
    Please complete the required fields.



  • 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.

    Reply
    Please complete the required fields.



  • 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.

    Reply
    Please complete the required fields.



  • 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.

    Reply
    Please complete the required fields.



Add a comment

  • Your email address is required so we can verify that the comment is genuine. It will not be posted anywhere on the site, will be stored confidentially by us and never given out to any third party.
  • Please note that any viewpoints published here as comments are user´s views and not the views of HousePriceCrash.co.uk.
  • Please adhere to the Guidelines

Your email address will not be published. Required fields are marked *

You may use these HTML tags and attributes:

<a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <s> <strike> <strong>