Friday, August 21, 2009

Household finances take a hit but still people are spending

Great British public duped again

UK household finances weakened in August as income and savings continued to fall, but an increased optimism about house prices and the job market fuelled further falls in savings and an increased demand for borrowing.......................Despite warnings that house prices are likely to stagnate at best over coming months, part of the increased optimism is based on the view that house prices will rise, with nearly half (41%) of households expecting an increase and less than a fifth expecting a fall in prices.

Posted by jack c @ 10:08 AM (965 views)
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10 thoughts on “Household finances take a hit but still people are spending

  • mark wadsworth says:

    Oh dear. Are we back in a minority of “less than a fifth” again? I thought we’d won the argument for the time being.

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  • Sorry guy’s I got the titles the wrong way round

    How strange, there are mass job losses but optimism remains over employment whilst falling household affordability leads to an expectation that house prices will rise !

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  • I have come to the conclusion that optimism in this country equates only to the possibility of HPI. The threat of job losses, high taxes, high debt is immaterial to the majority…how sad!

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  • Thinking about having myself committed now as I’m obviously completely crazy in thinking houses can fall in value as unemployment goes up and people empty their bank accounts at an alarming rate.

    Britain is not playing Monopoly anymore, we’ve now swapped to Going For Broke, and are sadly winning at it…

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  • I do believe that there definitely is some sort of “good news… things are back to normal” conspiracy going on in this country. Car producers say sales, due to the scrapage scheme have never been so good, yet production/sales were down 17.9% in July we are now told. Banks and Estate Agent tell us to fill our boots now, before it’s too late. Yet our own Chancellor told us in the Telegraph recently not to believe any of the hype and that it will be a long long difficult road to anywhere near to where we were a year or two ago….. I now believe only what my eyes tell me in my own area and to hell with the twisted and misleading reporting going on in Britain today.

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  • “People are spending”. What does that mean? No retail figures are shown. “People said they had made only modest cuts in spending”. They’re still cuts aren’t they? And respondents “feel increasingly secure in their jobs”. Those respondents are people who still have jobs. If the last survey included people on the brink of losing their jobs then that would have showed as “respondents who felt insecure in their jobs”. If they’ve now lost those jobs they are no longer being asked “do you feel secure about your job”. So the less secure jobs have gone and those remaining in work are in the more secure jobs. Well done Sherlock.

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  • Wonder what they’re spending not-their money on. Is this the last cough of the consumptive?

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  • I think we are reaching the point where the wreckless will have been proved right all along. If assets (houses) are allowed to deflate to their market driven level then there will be so much negative equity around that we will be in a depression for years and there will be riots. The only alternative is for QE to flood the market with enough cash to make current prices the “right” level. Those who have been prudent will be wiped out. Redistribution of wealth here we come.

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  • Perxactly Timmy…. that’s where we’re heading…… it’s all over…….

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  • Perxactly Timmy…. that’s where we’re heading…… it’s all over…….

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