Sunday, Oct 08, 2006

Credit crunch?

The Observer: Debt mountain hits plateau

The British are still Europe's spendthrifts, but there are signs of a more responsible attitude - among both borrowers and lenders....

Posted by midlandred @ 10:22 AM (2837 views)
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9 Comments

1. paul said...

Better slash interest rates to get them spending money they haven't got again then.

Sunday, October 8, 2006 11:41AM Report Comment
 

2. The Baldman said...

Once consumer borroiwng colls lets see how long the miracale economy lasts

Sunday, October 8, 2006 11:52AM Report Comment
 

3. Surfgatinho said...

There is nothing responsible or mature about the British public's attitude to spending. If there is a more responsible attitude it's because they are being squeezed too hard to borrow anymore, or at least no one will lend them anymore. As for responsible lending seems to be a bit of an oxymoron these days!

Sunday, October 8, 2006 01:15PM Report Comment
 

4. Ticktock said...

Ref - 'demand for credit is weakening, possibly because of the rise in interest rates and the slowdown in the housing market.'

Or, possibly, because people have run out of 'credit' and can't even afford the repayments on the debt that they already have?

Many of these articles seem to believe that those accumalating debts are simply 'over consuming' and that all will be able to stop doing so in the future in order to resolve the problem. This is very typical of a Middle class, who assume that all others live their lives, and view the world, in the same mannor as they.

While over consumption may be the disease afflicting Middle class people on reasonable incomes, Working Class people have been borrowing in many cases simply to make ends meet in the face of (real) falling incomes and rising (housing and related) costs.

This is not to deny that some have wasted money on 'big TVs etc.', but those who have, contrary to popular opinion, are in the minority. Working class people have a tradition of being debt adverse, and for good reason too. Most will only borrow in times of exteeme financial difficulty, and so I would suggest therefore, that these current levels of debt should be sending a clear warning as to the financial stress levels currently being endured by 'Labour' under this 'Labour' Government.

Sunday, October 8, 2006 01:50PM Report Comment
 

5. Boarder said...

The illusion that the economy has only been growing was solely based on growth in debt. We should see the economy plateau as well.

Sunday, October 8, 2006 04:00PM Report Comment
 

6. inbreda said...

"Speculation that Britain's debt mountain is about to topple has been contradicted by the release of figures showing that credit card borrowing has fallen for the first time in 12 years."

What an incredibly stupid statement! The fact that borrowing has fallen could mean nothing more than the fact that people are completely maxed out and cannot take on any more debt - not a good situation. The fall might be solely due to bankruptcies - i.e. the debt is written off. It doesn't necessarily mean that people are actually repaying anything. It could also be because banks are tightening their lending criteria - as alluded to in the article and people who would actually borrow more can't.

Any of these reasons would make it even MORE likely that "Britain's debt mountain is about to topple ". This article should have been written by a BBC journalist.

To think that the majority of the article is probably copy-and-pasted, the only comment probably added by the journalist is just pure dumb.

Sunday, October 8, 2006 06:10PM Report Comment
 

7. kpjcomp said...

"Speculation that Britain's debt mountain is about to topple has been contradicted by the release of figures showing that credit card borrowing has fallen for the first time in 12 years."

The word MEW'ing just popped into my head when I read that.

Sunday, October 8, 2006 09:42PM Report Comment
 

8. the bald man said...

Boarder..I fully agree. Growth has been built on the credit card and property boom.

Monday, October 9, 2006 09:02AM Report Comment
 

9. waitingfor hpc said...

i agree too. I hear the hiss of air from that bubble ........

Monday, October 9, 2006 09:37AM Report Comment
 

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