http://thescotsman.scotsman.com/business.cfm?id=21632005

Does that mean zzg they may be in trouble?
Hey webmaster and moderators here`s one thread that should be pinned.

but Merv says that all this equity withdraw has gone into bank accounts....so how can this be true?

one week without a job....I've just spent 5 months without a job and for 2 of those months neither of us had a job....we survived all right (made a little dent in our deposit money though). If they couldn't survive a week, how many couldn't survive a month? If you lost your job it'll take more than a week to get a new one. anyone know any stats on average as to how long it takes to get a new job (ie how many people sign off before then end of their 6 months!).

What with current high street sales doing bad, how long will it be before we start seeing job losses in the retail sector? These are the second incomes which are paying for all this debt repayments!

"There may be trouble ahead..."

The most puzzling thing to me is this: Why have people been taking huge risks and borrowing on their homes and assuming eternal price rises when a quick glance into history tells a different story?


"The one thing that we learn from history is that we don't learn from history"

I'm convinced that the mass public are incredibly stupid.

and with Britains 3rd rate education system I predict the future generations will be equally so.

And the answer is:


No job for a month and 6 Million people will be begging, thats 1/4 of the UK's work force.



http://www.thisismoney.co.uk/news/article...._a_source=&ct=5

I agree - though I suspect that most of the MEW has been by those with no memory/experience of the disaster that was 1990 - 1995. That really was the educational experience of a liftetime.

But even if you warn people, 'buy now pay later' ( on the back of rising House Prices ) , has had a greater hold on this society.

The 'easy money' culture that pervades this country is something to behold - de-mutualisation of Building Societies, dot.com, BTL.

Waiting for the next big thing - probably a return to car boot sales.

But some see further back than others.

Has to doesnt it to be cleared for starters , be nice to see the figures on withdrawals from those accounts , no chance probably.



A little unfair but on the right lines I think. More likely that people have no inclination to learn how money works , especially in this - as someone has mentioned - easy money culture.
I think there are a lot of people included in that group who also just cant be bothered , more fool them really.
It doesnt take much to notice how the financial state of the country is going down the toilet , pensions , savings etc . No excuse really IMHO.

Plastered over the tabloids most days.

The only time the herd seem to take an interest is when the red letters start coming through.

Dames

Saving is only worthwhile in a stable society. I think we are in for runaway inflation.

Living for now could be the right answer for many.

Say you dont earn much and would never be able to save enough to be a conspicuous consumer. Why not borrow and have that dream lifestyle for a short time. It may be the only way you could ever do it. Means tested benefits and pensions will ensure that you are not much worse off than a low income person who has saved all his life.

OK MEW people do have a lot to lose but inflation will give the younger ones the chance to start again. The country cant afford to have a quarter of home owners becoming homeless so reposession may become harder. Then the losers will be savers with shares in banks.

Hi Kitten, if you want my advice (for what it's worth) save some money in an ISA and some in a private pension (even if it's £50/month) and some in a savings account (say at least£30/month) and hedge your bets. I know that's money you could spend and buy nice things with but try to get used to living on less and saving more:-
PAY YOURSELF FIRST!
What I'm saying is save even if it looks like it's a waste of time because the world changes constantly - don't rely on the gov to look after you.
Sorry if sounds so serious but it is crucial you look to the future if only a little.
All the very best - Dave.

Unfortunately we live in bubble-trouble time so make sure you have an active pension that can switch between asset classes quickly(and upon instruction if you wish)

stocks alone will not give you a significant and sustainable growth...neither will property,bonds,commodities,derv's....


but with a bit of nous it's possible to get one that will switch to the next up-swinging asset class when all the goodness is creamed from the previous and it's about to take a nosedive.

If this scenario ever happened and the banks knew that repossessed properties could not be sold, then a new breed of social landlord would be born.
They will all be paying rent to the bank. Real competition for the BTLs. Moneylenders never lose.

the banks NEVER lose!!!!!

they aren't charities.If they lend anybody money they want it back....with interest.

Everybody is slave to it.joe public
business(check out gearing)
governments(through IMF,world bank)

and if you can't pay,your in trouble...it doesn't matter if you don't have a penny to your name,because every penny you earn after that they will lay claim to.

I don't.

Very profound zzg.

After 5.5k posts you should have at least worked out how to let us know who you are quoting

(Just press the reply button under the post. This quotes the entire post, and lets the reader know who you are quoting. Alternatively, use[quote=who@when])

Cheers

I am well aware of how to do this. I do not see the relevance in this instance.



If I had wanted to quote the entire post I would have done so.

It is of no relevance who stated the assertion, simply the assertion itself.


BTW, notice still no apology for your disgraceful, appalling and repugnant labelling of me as a "racist" and a "misogynist". I would expect nothing more now that I have divined your true nature, someone content to bandy about offensive and meaningless labels rather than to truly engage in an informed and RATIONAL discussion.

Latest figures from the BBA for the 11 months of last year show:-

800,000 new mortgages @ average £111k
760,000 2nd mortages @ average £94k
740,000 secured loans @ average £23k

Total secured borrowing £177bn by 2.3m households !!!!! and thats about 10% of all the households in the UK.

BBA accounts for 70% of secured lending, so complete picture is even more borrowing.

Now recent BoE survey, says that 25% of 2nd mortgages taken out are TO CONSOLIDATE DEBTS !!!!!

Surely someone has got to realise this debt issue is out of control !!!!

I am perfectly capable of rational discussion. I don't really see how 2 word replies are informed, actually.

And about the comments I made. Misogynist and racist are not meaningless terms. I noticed that my post was deleted, along with your post that caused me to make that statement.

Your blunt "this country already has too many people. We don't need any more" was offensive to me. I am in a serious relationship with a non-white, non-uk citizen, so in my opionion, you are wrong. You did not put your remark into any context, as usual.

As for being a misogynist, or at least a chauvanist, this forum is full of posts demonstrating that.

You do not even like the UK. What do you respect and admire ? You slag everything off, except for US cities you have never visited.

As for "divining my true nature", it took me many years to do that. I do not think that you are likely to have done it on the basis of a few forum postings !

I cant resist this last line:

You really are a sad twit - now get back to your revision or they will throw you out of college and you will have to get a job.

Then according to stats 296,000 are IO mortgages in the past 11 months.

If anyone had wanted me to expand on WHY I think runaway inflation was not a threat, I am perfectly happy to. If not, also fine.



Misogynist implies that I hate women. I do not.

Racist implies that I believe that one race is superior to another, or even that the concept of "race" exists at all. I do not.



Why? This country has one of the highest population densities on the planet. There are certainly many people in the UK who can justifiably argue that this country is "full".





And if you were not, you would have said nothing? Wow, moral bankruptcy at its most explicit.




Like what exactly? My initial statement is meant to invite other contributors to take up an opposite position, and elicit a REASONED DEFENCE of why this country is NOT full, the which is conspicuously absent from your (facile and sanctimonious) self.



I must have missed that law that stated that all inhabitants of the UK must sing its praises at all times.



What's it to you?




If anyone's the sad twit around here it's you, as evidenced by your excremental last line.

If you really want to put this figure (£177Bn) into context, compare it with the peak levels of the late 80's, even accounting for inflation the numbers are just extraordinary, no in fact they are obscene. How anybody can stand up and say this is not a financial bubble is frankly gobsmacking.

Well, at least my comments have incited you to write more than 2 words !

For the sake of the other posters I will not respond now. I do not think it would achieve much if I did.

Oh, except for one thing. Is excremental the opposite of incremental ?

So on the one hand you have me, perfectly prepared to submit a rational and thorough proposal to substantiate what I have said, and to explain myself at every step, and then you have wrongmove............who "can't be bothered".

zz credibility: intact.


wm credibility:................

WM, if you can't even be bothered to support your own arguments, why should anyone else?

Oh dear, oh dear, oh dear

Well you have given me a feccin' good laugh !

zzg - if your credibility on HPC is really worth that much to you, then you should have it !

But really zzg - think it through. HPC is a fun forum for information, debate and sometimes having a laugh. It is not the real world though. We are all anonymous here, and none more so than you. I will worry about my credibility where it matters, not on this (wonderful) forum.

Life is just far too short, mate

Oracle - Active Asset Allocation is exactly right for a low inflation, high debt environment for long term savings. Bravo!

Kitten,
Your:
"Say you dont earn much and would never be able to save enough to be a conspicuous consumer. Why not borrow and have that dream lifestyle for a short time. It may be the only way you could ever do it. "

Live now, Pay later.
A strategy adopted by many. But after living well, will they be able to cope with the debt hangover? I would rather live less well now, and live better later.

Indeed. Also, since when did "living well" equate to conspicuous consumption?

I feel sorry for anyone with so narrow a concept of a good life.

Zzg:

I'd be interested in knowing why why you don't think there'll be runaway inflation...

Governments throughout history spend more then they earn (ie receive in tax receipts); a government that can balance its books is a rare government indeed. As chronically indebted borrowers, the temptation for governments when they are in control of monetary policy has been, is and will ALWAYS be to allow rampant (or "runaway") inflation, as this wipes out their debt and enables them to pay back their creditors in devalued currency. The macroeconomic trend is for more and more of the world's major economies to give their central banks independence from political interference, as it is acknowledged that in this way the central bank can act in the long-run interests of the economy, rather than the short-term interests of politicians. Central banks are the opposite of governments; their inclination is to allow as little inflation as possible while still maintaining a healthy economy, as their raison d'etre is price stability, SUSTAINABLE economic growth and control of the money supply. There are many who argue that the politicians can wrest back control of the central banks whenever they please, but in reality if a government were to try to repossess for themselves the levers of monetary policy the financial markets would descend into chaos and uproar: investors have seen what happens when you let governments control the money supply, and they won't stand for it. As any government that has tried to intervene in the foreign exchange markets to artifically prop up its currency (eg the UK when it was ejected from the ERM) will tell you, you can't buck the market: the internation financial market is stronger than any government.

In short, central bank independence is why I don't think we will see runaway inflation.