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Credit Crunch

Discussion in 'General Discussion' started by Natalie, Oct 7, 2008.

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  1. forks

    forks still not dead

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    people in this thread still seem to be looking at the problem as being one of rising prices.
    That is not it.

    We are standing on the edge of the collapse of the entire banking system in this country. If the present government bail out of £50,000,000,000 doesn't work to restore confidence in the system there is little else the government can do. That was our last throw of the dice. If more than one of the big banks goes there will be a domino effect. We as a country don't have enough money to bail them all out. This is what is happening in Iceland. The UK is the most exposed country in the world because the finance sector is such a massive slice of our countries assets.

    prices are already tumbling as demand slackens. It is not about things costing more. It is about a collapse in credit. It is about massive unemployment, peoples pensions and savings disappearing in a puff of smoke, companies going bust in their thousands, the property market collapsing, massive defaults on mortgages, repossessions, hyper inflation.

    we better hope that the latest measures work. If not we are all in deep shit. and the ones who are in the deepest shit are the ones at the bottom of the pile.
    forks, Oct 9, 2008
    #81
  2. Friedrich Nietzsche

    Friedrich Nietzsche

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    Glass half empty sort of person I gather :wink: :p
    Friedrich Nietzsche, Oct 9, 2008
    #82
  3. scoobzshindig

    scoobzshindig Registered User

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    forks

    I couldn't have put it better myself.

    Spot on.

    If these bailouts don't work , the way we store our money, buy things like our homes etc will change forever..

    If it hasn't already.

    Eventually there will only be one bank left.. the BoE.

    Scoobz
    scoobzshindig, Oct 9, 2008
    #83
  4. BRID

    BRID Has name in red. Staff

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    It might be worth pointing out that the money being used to bail out the entire banking system is not coming out of a bank that the government has squirrelled away over the years.

    There is NO MORE MONEY LEFT.

    Its being PRINTED to bail out the banks... this devalues the rest of the money in the system and causes inflation. Food, fuel and bills are all going to go UP.

    So the banks get their dodgy loans paid off, but the man on the street suffers their greed.
    BRID, Oct 9, 2008
    #84
  5. scoobzshindig

    scoobzshindig Registered User

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    Yup.. but the US have been printing their dollars for years and have openly admitted to devaluing their own currency.. hence the mess imo..

    They will now have to be very careful about taking it much further in this current crisis.. China own a huge slice of US debt (IE a shit loads of dollars).

    The floodgates would really open if China said enough is enough and decided to offload.

    They could put the final nail in USA's coffin.
    scoobzshindig, Oct 9, 2008
    #85
  6. Conway

    Conway helmet Staff

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    This is why people had money invested in Iceland:

    http://news.bbc.co.uk/1/hi/business/7658908.stm

    Conway, Oct 9, 2008
    #86
  7. Phil Mitchell

    Phil Mitchell check me a dollar brer?

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    Im off to drink 7 bottles of vodka
    Phil Mitchell, Oct 9, 2008
    #87
  8. scoobzshindig

    scoobzshindig Registered User

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    scoobzshindig, Oct 9, 2008
    #88
  9. Phil Mitchell

    Phil Mitchell check me a dollar brer?

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    I didnt have you down as an Economist reader and after clicking that link it looks like I was right :lol:
    Phil Mitchell, Oct 9, 2008
    #89
  10. BRID

    BRID Has name in red. Staff

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    Argentina is a good example of what happens to a country when the banking system collapses.

    Riots, marshal law, stampedes over food.

    People here think we are somehow above all this kind of thing, but theres a saying that a society is only 2 meals away from revolution.
    BRID, Oct 9, 2008
    #90
  11. ManofScience

    ManofScience Guest

    executives giving themselfs a capped pay rise?!? they'd never agree to it! they'd give it to the everyday workers on the floor though.....

    the rich get richer........
    ManofScience, Oct 9, 2008
    #91
  12. Conway

    Conway helmet Staff

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    it's "a meal and 24 hours from barbarism" ;)

    all this talk of capped wages and sustainable banking won't work.

    The truth is that these people are far too interested in getting their own noses into the trough.

    regulation or revolution is needed.
    Conway, Oct 9, 2008
    #92
  13. Conway

    Conway helmet Staff

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    I bought a house for 100k in June with the girlfriend.

    It was worth £75k 5 years ago.

    It was worth £34k 10 years ago.

    The difference? Changes made to the house in that time that would improve its value?

    Apart from a spot of decorating, nothing.

    The only thing dictating the price is "the market"



    What people don't realise is that the "value" of a house is virtual. You never really see it. It's just like buying shares in a company, or currency. It's only worth what someone would pay for it.
    Conway, Oct 9, 2008
    #93
  14. ManofScience

    ManofScience Guest

    i agree - but 10 years ago the housing market was in a SLUMP so 34k probably under valued.

    i'd say it's long overdue and was always going to happen - house prices are just correcting
    ManofScience, Oct 9, 2008
    #94
  15. Conway

    Conway helmet Staff

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    The way money works can be likened to certain mathematical equations (like momentum for example).

    The equation must always balance. The economy will always correct itself.

    We've had approximately 10 years of cheap credit, and such lunacy as people trying to "invest" in property by buying two homes and renting one out, not bothering to save, and living their entire lives on unsecured loans and credit cards.

    This kind of activity is unsustainable long-term.

    The correction we're seeing now has been coming for a long time. Its not going to be nice or quick, but at the end of it the balance will be restored.
    Conway, Oct 9, 2008
    #95
  16. ManofScience

    ManofScience Guest

    there won't even be balance, so many markets have so many different effect - it'll always be backward and forwards
    ManofScience, Oct 9, 2008
    #96
  17. Conway

    Conway helmet Staff

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    :up:

    If you believe the estate agents, its undervalued now. It should be worth £125k.

    I couldn't give a fuck how much it's worth, I bought it to live in, not to make a quick quid on or play "move up the property ladder" :)

    Thats why I couldn't care less about these people fretting about their houses losing value. Only time it will affect me is if I was selling. And I'm not going to be unless I need to find a bigger place :up:
    Conway, Oct 9, 2008
    #97
  18. ManofScience

    ManofScience Guest

    a lot of these jobs u speak about - production DO have these pay rises - most are still to this day negoiated by unions.

    ours for example, did our pay deal over 3 years ago. thats just expired and part of that pay deal was at the end of the 3 year deal we'd get a cost of living rise on top of the normal pay raises - 2.5% OR the national interest rate whichever is bigger - which a few weeks ago was 4.7%!!! i bet they didn't see that coming :lol:

    so, that'll be nice at the end of the month
    ManofScience, Oct 9, 2008
    #98
  19. BRID

    BRID Has name in red. Staff

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    Im not against free enterprise, but i think there should be restrictions on industries where the stakes are so high that a failure in one of them could bring about the catastrophe that we have right now.
    BRID, Oct 9, 2008
    #99
  20. forks

    forks still not dead

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    I love all this socialism talk. It's amazing how government intervention is called for when the well off look like they might get a bit poorer, but it's all talk of scroungers when the poor want just a little bit of the cake.

    I've watched over the years as the 'greed is good' philosophy has taken root.

    Anybody pleading the case for fairness and social justice was derided as a hippy liberal wanker.

    anybody at the bottom of the pile is a pikey charver who deserves to be kicked some more instead of helped to improve their quality of life, and the biggest kickers are those just above them on the social heap who blame them for scrounging when the people who are the real robbers with their million dollar bonuses and fat cat lifestyles are lauded as examples of enterprise and to be praised.

    now these cunts have swanned off to their tax havens and left the rest of us to pick up the tab for their greed.

    and we are just going to have to pay up.
    forks, Oct 9, 2008
    #100
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