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Credit crunch is my fault sorry...

Watching News 24 ( snore) earlier, I was infuriated by some pompous fat-cat saying that the general public are to blame for this so called ' credit crunch' by not saving money for the hard times!
With the bowel-loosening cost of living now, who the hell can afford to save a decent amount of sheets for hard times? Not to mention the miserly interest on savings.

The main instigators of this financial turmoil are a bunch of greedy *******s. The UK banks point the finger at the American sub-prime market being to blame but they all stampeded over the pond to get a piece of the action by fleecing the poorer US citizens of their last few cents with the money entrusted to them by UK citizens.
When it all went pear shaped they came running back with huge losses and all the time pointing the finger at joe public and expecting the Govt to bail them out. ********!

I could go on and on and on and on.....but I won't. It just burns my arse that the average person is squeezed for every last blue cent and then blamed for all that is wrong and made to shoulder the responsibility of fixing it.

Phew! rant over. Maybe I should open that bottle of Jameson I've been saving. There is a twinge of rebelliousness about having a dram before 12 noon

Okthanksbye.
 
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Re: Credit crunch is my fault sorry...

Quote:
Originally Posted by Sipe View Post
Watching News 24 ( snore) earlier, I was infuriated by some pompous fat-cat saying that the general public are to blame for this so called ' credit crunch' by not saving money for the hard times!

It's not entirely incorrect though. We all want everything, and we want it now. So we put it on credit. New TV's, new cars, holidays, the latest clothes. We have a society where most people have all of the above, and to hell with whether they can afford it or not.

My wife and I have a pretty good income (I'm on 40k+ per year) and some savings, but we still find that after the mortgage and essentials, we struggle to buy some of the nicer things in life, yet the bloke next door on minimum wage and his stay at home partner looking after the kids, are having holidays abroad every year, and all the latest mobile phones and gadgets, as well as a nearly new Merc on the drive.

He fully admits it's all on the never never, because [quote] 'thats how everyone lives now'

So it makes me wonder who are the mugs here? Me and the missus for trying to remain debt free, even if that means going without, or the people who have it all, and get by with paying the minimum amount off their cards every month?

Because it sometimes feels like I'm the eedjit who's going without
 
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Re: Credit crunch is my fault sorry...

Bad news all round mate. Borrow in haste repent at leisure? The borrower becomes a sorrower? Like a few on here I guess, had to save with a Mutual Building Society for a couple of years, before we could get a mortgage originally.

On a subsequent occasion, had no savings, but had to take out a procuration agreement, which meant having a Life Policy, that we didn't want, couldn't afford, through some 'sharkie' broker.

Final mortgage, with two endowments, which were pants, really! All past history now, and I suppose we are comfortably contented watching this stupid, greedy, financial world around us.

Klondike 'Herd Instinct' for bricks and mortar over for a while?:
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Re: Credit crunch is my fault sorry...

the credit crunch is 50/50 caused by a greedy public and idiotic american banks with idiotically reckless lending policies, a habit plenty of UK companies copied. some uk lenders (especially the ones backed by american money from investec, merrill lynch etc) were absolutely insane with their lending policies until a year ago
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Re: Credit crunch is my fault sorry...

[QUOTE=HSTDriver;1659243]It's not entirely incorrect though. We all want everything, and we want it now. So we put it on credit. New TV's, new cars, holidays, the latest clothes. We have a society where most people have all of the above, and to hell with whether they can afford it or not.


He fully admits it's all on the never never, because
Quote:
'thats how everyone lives now'

So it makes me wonder who are the mugs here? Me and the missus for trying to remain debt free, even if that means going without, or the people who have it all, and get by with paying the minimum amount off their cards every month?

Because it sometimes feels like I'm the eedjit who's going without
At least 6 people I know (mate's and family mostly) are up to beyond their collective ears in the sh1te through credit card debt...all are looking IVA's (is that the right initials ) in the face and none of them have a blummin' thing to show for their trouble's, no new cars, no nice holidays..nuffink.

None of them have had to get in debt...they've not been of work to fight a terrible illness, no kids have had to have expensive treatment for something nasty...The debt is down to pure greed and an attitude of "Oh I'm paying the minimum and that'll do..."

In most of the case's all that happens is that they have gone back to Mummy and Daddy crying and moaning cos they're skint and blahblahblah...and hold out their hands for cash...which they get cos the parrents seem to be soft in the head

There's no "Its your debt you sort it!"..."Here's a novel idea - go without!"...."Try saving instead of blowing your money on booze, smoke's, shoe's, paying for your fecking mate's to come round for take away...etc etc..."

I'll take a bit of going without, saving up and being debt free if thats alright by the credit companies...

Dum dum dum dum dum dum dum dum


F U N E X

:skull: This shark, swallow you whole. Little shakin', little tenderizin', an' down you go. :skull:

Last edited by Lookin' 4 Ferdi; 22-03-08 at 11:51.
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Re: Credit crunch is my fault sorry...

In total agreement with that Al capulco Al, and you know far more than I, for sure in this respect. Typical for us though, we will probably have to fester here for a while,before we relocate,with hopefully prices stabilising in a year or so?:

Last edited by zulu ferret; 22-03-08 at 14:04.
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Re: Credit crunch is my fault sorry...

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So it makes me wonder who are the mugs here? Me and the missus for trying to remain debt free, even if that means going without, or the people who have it all, and get by with paying the minimum amount off their cards every month?
Don't wonder, you are right and they will be on a heap soon.

No matter what anyone says just now, things are going to get very sticky. Personal debt is too hign and the interest rates are going to increase. Public debt has been hidden as the PPP building activities carried out by Labour have all been regarded as "off book" and not public debts. They have mortgaged our future and we will never own the assets in most cases.

The whole economy over the past 5 years has been funded by consumer spending which has come out of credit and "equity release" from property. As soon as the property prices drop the whole house of cards will come down. Keep your debts and mortgage down as much as possible over the next 3-4 years.

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Re: Credit crunch is my fault sorry...

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We have a society where most people have all of the above, and to hell with whether they can afford it or not.

My wife and I have a pretty good income (I'm on 40k+ per year) and some savings, but we still find that after the mortgage and essentials, we struggle to buy some of the nicer things in life, yet the bloke next door on minimum wage and his stay at home partner looking after the kids, are having holidays abroad every year, and all the latest mobile phones and gadgets, as well as a nearly new Merc on the drive.


So it makes me wonder who are the mugs here? Me and the missus for trying to remain debt free, even if that means going without, or the people who have it all, and get by with paying the minimum amount off their cards every month?

Because it sometimes feels like I'm the eedjit who's going without
We're in the same boat as you HST. Just seem to be managing but little left for extravagance but we are not badly off.

I just keep seeing all these people in pretty middling jobs with big houses and all the accoutrements of a great life-style and wonder just like you how can they afford it?
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Re: Credit crunch is my fault sorry...

I do agree that there is a shared responsibility and we should live according to our means. It just irked me that the guy suggested that it was entirely our fault.
 
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Re: Credit crunch is my fault sorry...

Worst bit is for us is, we have to fork out to get decent Health Treatment, and we really have to budget accordingly, to cover the cost.: No world cruise, just teeth that work! Knees, hips, hearing, eyes, all pending for the moment.: So our frugal attitude is likely to be taken care of, with few luxuries of extravagance for all those past years of hard graft.
Just the essential rebuilds as the body falls to bits. Hey! Ho!:
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Re: Credit crunch is my fault sorry...

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Public debt has been hidden as the PPP building activities carried out by Labour have all been regarded as "off book" and not public debts. They have mortgaged our future and we will never own the assets in most cases.


Quite right. PFI/PPP is a big ticking
bomb that will sink the UK.

The filthy *******s who signed off on
it along with the handful of parasites
who are bleeding the public dry should
all be taken into a dark alley and
executed.
 
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Re: Credit crunch is my fault sorry...

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Worst bit is for us is, we have to fork out to get decent Health Treatment, and we really have to budget accordingly, to cover the cost.: No world cruise, just teeth that work! Knees, hips, hearing, eyes, all pending for the moment.: So our frugal attitude is likely to be taken care of, with few luxuries of extravagance for all those past years of hard graft.
Just the essential rebuilds as the body falls to bits. Hey! Ho!:
Well said ! When I went into early retirement I thought I had it all sussed out, no longer quite so sure.

Must start working on the equation of " Capital divided by life expectancy ", sure as eggs are eggs my monthly income is not going to keep up to the troubled times ahead.
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Re: Credit crunch is my fault sorry...

Just sold my house, going to rent for a bit with the equity in the bank, wait for this credit crunch to really take hold !
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Re: Credit crunch is my fault sorry...

The credit crunch has been exacerbated by the liquidity squeeze that banks face, brought about by a renewed mistrust in each other (eg. banks not willing to do business/lend to other banks) effectively putting serious brakes on the already wobbly economies of the West.

Interesting article on the Economist about the Fed's intervention to rescue Bear Stearns: Wall Street | Wall Street's crisis | Economist.com
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Re: Credit crunch is my fault sorry...

Creed is good...........except when the 'piper comes for his money'

Financial intitutions that only look for 'profit' and do not worry about the ability of their so-called customers to pay it back are asking for trouble.....
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Re: Credit crunch is my fault sorry...

I think that's true of every type of corporate Stori, not just financial institutions
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Re: Credit crunch is my fault sorry...

I think a lot of the troubles come down to irresponsible lending, I know a guy who owes nearly 30K he's in his mid twenties, has a car worth about £300 lives in rented accomadation, owes on catalouges, council tax etc etc. His car is his most valuable asset
What kind of person lends him money? and people in his situation seem far more common than mine, When I wanted my 156, I saved a few quid and did a few foreigners, saved a bit more and kept whetting my appetite looking on Auto trader, the wanting was part of the fun, just spent hours under a BMW, getting it through an MOT for a friend to but a St/steel exhaust. No holiday this year as we need new windows, its not easy, but nothing in life worth having ever is.

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Re: Credit crunch is my fault sorry...

True Jason, but I think giving credit to less well off people is a good thing and something that has been somewhat overlooked.

I am not saying banks are do gooders that help the community but allowing even people with little net worth to access credit, can help lots of people lift themselves out of poverty or near poverty. Clearly, if they use the cash to go and buy themselves a keg of beer, that's really no good but it'd still not convince me that credit can be a positive factor. Look at the benefits of microcredit.

The problem was started by unregulated lending by mortgage brokers in the US, who were not falling under anyone's jurisdiction for accountability and were given licenses by the local town hall or whatnot. These guys hired their own real estate valuers (conflict of interest anyone?), and were paid simply for extending loans. Clearly, the banks were at fault for helping fuel this joke but it was a case of mortgages being bundled, repackaged and passed on so many times that if one looked at an individual stage of the life of the mortgage, all looked somewhat fine, but taken together, deep and disturbing lack of due diligence as well as conflicts of interest emerged.

Fraud was also a big issue in pushing the sector over the edge, with the so called NINJA loans (no income, no job, no asset) and "No Doc" loans (mortgages made without any documentation).

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Re: Credit crunch is my fault sorry...

I guess the lad I know falls into the NINJA catorgory, he has a job, but he is so far behind with his debts, he may as well not have, I guess my point was that it is a collective responsibility, the way of the world has been to borrow/lend beyond peoples ability to pay.
As to lending to people on the limit, the guy who started the ball rolling is a local hero in these parts, Robert Owen who started a credit union, he came from (and is buried in) our local town.
Another guy I know borrowed to buy a house, as the values of his house went up he borrowed against the increase in value, now house prices have fallen, he finds it cheaper to go bankrupt owing £140K than to service his debt, who pays his debt off?
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Re: Credit crunch is my fault sorry...

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who pays his debt off?
Those who've lent to him will foot the bill initially.

I suppose, the guy's bankruptcy will require him to compensate his debtors over time and should not be a "get out of jail" card
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Re: Credit crunch is my fault sorry...

There would be no credit crunch if people exercised a bit of personal responsibility. It seems common sense ain't that common any more and people are all too willing to get themselves into debt.

The only thing I'd consider buying on credit is a house - and on a mortgage we can afford if the interest were to double or one of us was to be put out of work. Luckily girlie shares the same view, if we haven't got the money we don't buy it. Sure it would be nice to live in a mansion with an Aston Martin on the drive but we can't afford that lifestyle (... well, at the moment! )
 
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Re: Credit crunch is my fault sorry...

A woman my girlfriend used to work with bankrolled her lifestyle with Credit Cards, she lived about 4 pay grades above her means and ended up with over £35K on loans and CCs.

Not including the BMW X5 and the Scooby WRX she and other half had on the tick...

It'll all end in tears you mark my words.

Spend what you have, not what you don't have and don't worry about what anybody else has got because it doesn't really matter. If you can live comfortably, feed yourself and treat yourself occasionally then that's a good foundation for growth.

If you want more 'things' then take control of your life and put yourself in a position that allows you to afford those 'things' without buying them on Credit.


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Re: Credit crunch is my fault sorry...

If you consider increased equity in your home to be profit and have re-mortgaged your home to buy a new car or flashy plasma TV then yes the credit crunch is indeed your fault
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Re: Credit crunch is my fault sorry...

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Spend what you have, not what you don't have and don't worry about what anybody else has got because it doesn't really matter. If you can live comfortably, feed yourself and treat yourself occasionally then that's a good foundation for growth.
Very true indeed.

Everyone wants the latest flashy gadgets and cars. I've got plenty of mates living the credit card lifestyle, having to buy brand new cars, pay off the interest and depreciation, trade it in for a newer model, rinse, repeat and never own their car. Mortgage breaks to pay off cards, swapping money about on credit card deals. We'll see who's happier in 20 years time once the flashy TV's bust!

It sounds harsh to say it but I think we need a bit of a crunch to stop the 'want it now' gereration: My generation, the mid-to-late 20's, early 30's all need a bit of a slow down and a reality check.
 
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Re: Credit crunch is my fault sorry...

Greedy borrowers don't help, but I lay the blame squarely at the door of the lenders. They were the ones who signed off cheap loans to people who couldn't afford it and they were the ones who created the borrowing culture.
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