Little Englander (sour)

I must be thick but I thought that one of the problems of the present predicament was the availability of huge wodges of cash looking for borrowers and low interest rates, these facilities were eagerly pounced upon by the general public (of a certain profligate persuasion) with the cry of spend, spend, spend, on the plastic, of course. Surely alarm bells should be ringing when there's talk of lower interest rates and £bns available.

Please don't tell me that first time buyers are to be offered amounts that equal 6 or 7 times their salaries and 125% mortgages, on "fixed" rates.

The average wage would not support loans of any more than £90,000, any one got a houise going for that price?

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Little Englander (bigoted)

allanon

Absolutely.

The 'solution' to the problem of low interest rates and too much credit is to lower interest rates and throw more money into the system.

The message your spending more than your ******* earning just isn't a vote winner.

angelman

To be fair, I think that all parties have been warning about this for a long time. I suppose that trying to put in measures to prevent people reaching their materialistic goals, is as you say, not a vote winner. The thing that amazes me is that as soon as the "good times" go a tiny little bit bad, then people who are stretched to the hilt are up the creek. When they go bad big time, they are completely stuffed. People have no saftey margins and think that all is going to be rosy for the rest of time. When it goes bad, they expect the government to do something for them.

It might actually be as simple as people not being able to do basic sums and budgeting and basic risk analysis.

But LE, the difference now is that the lenders are not going to do all these ridiculous ensecured 125% loans and to be honest I can;t see it happening again (but no doubt it will at some stage).

Aardvark

Who would have thought after BCCI that people would transfer their worldly wealth to dodgy offshore banks for an extra 1% interest? It will happen again. Elephants might not forget, but chavs do.

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When in Woking do as the Wokes do.

"I do not wish to form my opinions by thoughtlessly quoting others; I wish others to support their opinions by sensibly quoting me." Paul Wesson (Aardvark) 13th April 2008

allanon

But not the most important politicians. Up until this blew up Brown was forever banging on about the record period of economic growth - basically driven by spending on credit cards and equity release.

European Citizen

Of course British banks don't go bust, do they?

Aardvark

Sadly they now do.

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When in Woking do as the Wokes do.

"I do not wish to form my opinions by thoughtlessly quoting others; I wish others to support their opinions by sensibly quoting me." Paul Wesson (Aardvark) 13th April 2008

Wowbanger TIP

Take a look at this, but make sure your sitting down first.

Chart of the Day - www.chartoftheday.com

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The only ones left with any confidence at all are the New Dumb. It is the beginning of the end of our world as we knew it. Doom is the operative ethic.

H S Thompson

Kingdom of Fear: Loathsome Secrets of a Star-crossed Child in the Final Days of the American Century (2004)

Wowbanger TIP

Richard Fuld punched in face in Lehman Brothers gym - Telegraph

lol.

__________________
The only ones left with any confidence at all are the New Dumb. It is the beginning of the end of our world as we knew it. Doom is the operative ethic.

H S Thompson

Kingdom of Fear: Loathsome Secrets of a Star-crossed Child in the Final Days of the American Century (2004)

Little Englander (sour)

The Truman quote "it's a recession when your neighbour loses his job, it's a depression when you lose your job" rings true today and probably always will.

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Little Englander (bigoted)