[Sys1]

$this->bbcode_second_pass_quote('', 'M')ore people than ever before missed credit card payments in the second quarter, and consumers are almost certainly deeper in debt today now that the third quarter has come to a close

[some_guy282]

And just in time for the new bankruptcy bill to go into effect too!

[falser]

I can almost see Alan Greenspan doing a Mr Burns impersonation - sitting at his desk, fingers twittling in front of him while muttering "... Excellent ...".

[threadbear]

Sad fact is where other govt's would be thinking of how best to ameliorate this situation, so the fewest people suffer, the neocon's first concern is to make sure financiers aren't left holding the bag.

[PWALPOCO]

Hi ,

This is my first posting to a PO forum.

The debt problem you guys are speaking of isnt unique to the USA , the UK is in a very similar situation.

Over the last 18 months or so in the UK we have had relatively low interest rates , low inflation , fairly good employment levels and a housing price bubble.

The housing price bubble has been fuelled by irresponsible lending (sure you can have 4x times you income for a loan) and has meant people obtained properties at its costliest , taking on repayments barely within reach at interest rates at their lowest.

In the UK, interest rates are set by our central bank and lenders usually respond to those changes , which are decided monthly , within weeks.

The housing bubble has also funded massive lending to those people whose properties have increased in value. People are borrowing against the equity (the difference between the mortgage value and the perceived value of the house) and this has created some inflation.

Now we are in a nightmare scenario. People are either at full stretch on big mortgage repayments for properties that can only go down in value, or have borrowed money on the basis of their being good equity in their house. All this spending has meant inflationary pressures are looking to put interest rates up (making those big repayments even bigger) and killing the housing boom and creating falling house prices (negative equity is bad news !).

And now that energy prices are on the up , British Gas has raised gas prices by 14% this year , people have even less money in their pockets.
Even worse, our Chancellor (prudent as he is) has managed to completely get our economy growth forecasts wrong. His budget has assumed he can spend bucket loads of cash because the economy would do so well and he would get lots of taxes. This week we learnt that our economy was growing slower than it has done in the last 12 years. Rising taxation to fund government spending is likely to hit peoples pockets even more while cutting spending is likely to hurt those who need the money most.

For the average person I dont think the UK is in a fit position to face any severe energy cost shocks or shortages in the coming months ahead.

Paul

[Hawkcreek]

--

[Yavicleus]

$this->bbcode_second_pass_quote('falser', 'I') can almost see Alan Greenspan doing a Mr Burns impersonation - sitting at his desk, fingers twittling in front of him while muttering "... Excellent ...".

[jaws]

Monetary policy is the most catastrophic form of socialist central planning that western countries have ever adopted. It is so because people have no idea what is happening to them. What they are actually doing when they lower rates is to subsidize borrowing and tax saving. No wonder people are carrying more debt than ever! The government is actively encouraging it so that unemployment will be low come the next election time.

How do they pay for these subsidized loans? Taxes, hell no! They pay with inflation. That's why people don't know it's happening. They just think the government 'sets the interest rate'.

[Specop_007]

$this->bbcode_second_pass_quote('threadbear', 'S')ad fact is where other govt's would be thinking of how best to ameliorate this situation, so the fewest people suffer, the neocon's first concern is to make sure financiers aren't left holding the bag.

[jaws]

$this->bbcode_second_pass_quote('Specop_007', '
')And why should they be left with the bag? Those consumers werent forced at gunpoint to sign the dotted line.
Its called personal responsiblity. i know that term scares the holy living shit out of liberals, but thats the sad fact of life. Those consumers knowingly and of their own accord signed up to debt*. They should be held accountable for it.

* in 95% of the cases.

[Specop_007]

$this->bbcode_second_pass_quote('jaws', '')$this->bbcode_second_pass_quote('Specop_007', '
')And why should they be left with the bag? Those consumers werent forced at gunpoint to sign the dotted line.
Its called personal responsiblity. i know that term scares the holy living shit out of liberals, but thats the sad fact of life. Those consumers knowingly and of their own accord signed up to debt*. They should be held accountable for it.

* in 95% of the cases.

[rogerhb]

$this->bbcode_second_pass_quote('Specop_007', '')$this->bbcode_second_pass_quote('jaws', '')$this->bbcode_second_pass_quote('Specop_007', '
')And why should they be left with the bag? Those consumers werent forced at gunpoint to sign the dotted line.
Its called personal responsiblity. i know that term scares the holy living shit out of liberals, but thats the sad fact of life. Those consumers knowingly and of their own accord signed up to debt*. They should be held accountable for it.

* in 95% of the cases.

[EnemyCombatant]

Specop, why are you so pro-government, pro-corporation.

Financial institutions rape the people, it's called predatory lending. They set the interest rates and penalities so high, that they know people cannot ever get out. That's the crime.

Reminds me of a famous real estate investor. He would call the tenants and try to fish out information if they were making more income so he could charge more rent. Forget that the might use the extra money to save for a house. It's greed. There is plenty enough for everyone but some people they should take ALL of it. And you are the idiot on the front lines protecting them and allowing them to do this. They love people like yourself.

That's not capitalsim or good business, it's being a predator.

People just don't know how to play nice. And keep in mind, a lot of the people in trouble are going to be Republicans. Again, try to get the Democrat/Republican divide out of your head. Politicians don't care for any of us.

[Specop_007]

$this->bbcode_second_pass_quote('EnemyCombatant', 'S')pecop, why are you so pro-government, pro-corporation.

Financial institutions rape the people, it's called predatory lending. They set the interest rates and penalities so high, that they know people cannot ever get out. That's the crime.

Reminds me of a famous real estate investor. He would call the tenants and try to fish out information if they were making more income so he could charge more rent. Forget that the might use the extra money to save for a house. It's greed. There is plenty enough for everyone but some people they should take ALL of it. And you are the idiot on the front lines protecting them and allowing them to do this. They love people like yourself.

That's not capitalsim or good business, it's being a predator.

People just don't know how to play nice. And keep in mind, a lot of the people in trouble are going to be Republicans. Again, try to get the Democrat/Republican divide out of your head. Politicians don't care for any of us.

[Ludi]

$this->bbcode_second_pass_quote('Specop_007', '
')
If it takes stiff laws to get people to grow up and be responsible then so be it.

[Shadizar]

$this->bbcode_second_pass_quote('Specop_007', '')$this->bbcode_second_pass_quote('EnemyCombatant', 'S')pecop, why are you so pro-government, pro-corporation.

Financial institutions rape the people, it's called predatory lending. They set the interest rates and penalities so high, that they know people cannot ever get out. That's the crime.

Reminds me of a famous real estate investor. He would call the tenants and try to fish out information if they were making more income so he could charge more rent. Forget that the might use the extra money to save for a house. It's greed. There is plenty enough for everyone but some people they should take ALL of it. And you are the idiot on the front lines protecting them and allowing them to do this. They love people like yourself.

That's not capitalsim or good business, it's being a predator.

People just don't know how to play nice. And keep in mind, a lot of the people in trouble are going to be Republicans. Again, try to get the Democrat/Republican divide out of your head. Politicians don't care for any of us.

[Ludi]

$this->bbcode_second_pass_quote('Shadizar', '
')
The simplest solution to this is for the individual to become self-sufficient and not cater to interests that are only out for their own interests. Thats not a message that can be broadcast 24/7 on TV though....

[jaws]

So spec what you're saying is that you are totally in favor of the poor being responsible, but rich people can scam off as much money from the government as they want whenever they need it due to their irresponsibility. Sounds very American.

[Shadizar]

$this->bbcode_second_pass_quote('Ludi', '')$this->bbcode_second_pass_quote('Shadizar', '
')
The simplest solution to this is for the individual to become self-sufficient and not cater to interests that are only out for their own interests. Thats not a message that can be broadcast 24/7 on TV though....

[Specop_007]

$this->bbcode_second_pass_quote('jaws', 'S')o spec what you're saying is that you are totally in favor of the poor being responsible, but rich people can scam off as much money from the government as they want whenever they need it due to their irresponsibility. Sounds very American.