The "Credit Crunch" and you?

[Fayshun]

I stumbledupon this, for when things get bad...

http://www.weirdasianews.com/2008/09...n-hits-locals/

[Admiral Huddy]

Personally, I see the Credit Crunch as a good thing. The banks know that in the past, they have been lending out far too much and therefore, are right to pull the reigns in a bit to balance the books and protect their own liability. .

We've been saying for years that house prices are far too high which has forced many people to borrow beyond their means and this needs to stop. As a result, this will bring the prices to a more affordable level and thus will give everyone a chance to buy within their means.

Where the system fails is that the building trade is affected and this has a knock on effect on everyone down the chain and price drops will leave people in negative equity. But let's not forget... last time this all happened, not only did we have high inflation, but we also had incredibly high interest rates too. The combination of the two pushed us not only into recession but we were also on the brink of a depression, forcing us to devalue the pound when rates went out of control. .


Today however, and since the BoE control the rates, we are still enjoying low rates and when property prices fall to an acceptable level, then more people will be able to buy, the bank will start to loan again and recovery can start.. until the next time.

This of course doesn’t take into consideration of global food prices and rising fuel costs, which is totally different to the credit crunch.

Here's a thought.. the private bank I work for is over 50% down on loans... yet our profits are 21% up on last year already.

[Desmo]

There deffo needed to be some kind of correction, but it seems to be happening too abruptly. And the media are playing it up too much which means that people are being more cautious than they need to be which means things really do start to get worse than they need to be.

[Admiral Huddy]

Originally Posted by Desmo

There deffo needed to be some kind of correction, but it seems to be happening too abruptly. And the media are playing it up too much which means that people are being more cautious than they need to be which means things really do start to get worse than they need to be.

Exactly my point.. It's lack of understanding that has brought down consumer confidence.. as said in a previous post.

What makes me laugh is that some companies (Tesco) are using it to promote their products .. "Credit Crunching price beaters". Sorry, but if you are doing food shopping on a credit card, there is something seriously wrong.

[vix]

I hate the way it has been used as an excuse for everything too. Was watching a program on abandoned animals and loads of excuses were 'the credit crunch'. I had to give up my dogs a few years ago because I couldn't afford to look after them, it happens all the time, but now it's because of the 'credit crunch'. Does my head in.

[Admiral Huddy]

.. It's just another bloody Buzzword Vix, we seem to obsessed by them.

[Pumpkinstew]

Yeah, I've had Pre-millenial tension, Post millenial tension, a world cup hangover and even a nasty dose of zeitgeist.

[Knipples]

Originally Posted by Kitten

Did that for about 5 years - had no choice unfortunately

Same with me and my overdraft, its that or I dont eat.

[Admiral Huddy]

Some drunk woman on the train last night complaining about the CC. Saying that she should receive more more benefit to help look after her 5 kids as none of the fathers help.. and what a tough life she gets.. Had to bit my lip.. Sorry, sweetheart but if you can afford fags & booze then you ain't that hard up.. and why should I ****** be out of the house for 12 hours a day, missing out on my kids to help feed your dirty ****ing habbit of not keeping your legs crossed.
She actually stood up and shouted at the carriage.. You f** w** can afford it..

Grrrrrrrrrrrrrrrr

[vix]

That's awful!

I'm currently unable to work through no fault of my own (except I'm an idiot) and receiving a lot less than people on benefits do, so it really winds me up when you see people like that.