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Moody's issues warning over UK consumer credit

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    Moody's issues warning over UK consumer credit

    So it begins. Proper doom. Yeah yeah they did not predict the credit bubble, but you better be sure everyone listens to them nonetheless.




    Rating agency Moody’s has sounded the alarm over Britain’s consumer credit market.

    It has downgraded the outlook on bonds backed by credit card customers, buy-to-let mortgages and car loans, and warned that some British borrowers will struggle to repay their debt as the economy weakens, and inflation eats into their salaries.

    In a new report Greg Davies, Moody’s assistant vice president, says:

    “Household debt is high and still growing, leaving consumers vulnerable to an economic downturn, while higher inflation, weaker wage growth and levels of indebtedness leaves those in lower-income brackets the most exposed.”

    “An additional challenge is that households’ capacity to draw on savings to maintain consumption and/or service their consumer debts has significantly diminished.”

    As a result, Moody’s has downgraded the collateral outlooks on most ‘UK structured finance sectors’ to negative
    .
    source: https://www.theguardian.com/business...eurozone-pmis-


    "Never argue with stupid people, they will drag you down to their level and beat you with experience". Mark Twain

    #2
    ah yes if only people didn't need to get a new car every 3 years and the newest consumer tech every year

    oh well I suppose they were going to get burned eventually.

    Comment


      #3
      Originally posted by original PM View Post
      ah yes if only people didn't need to get a new car every 3 years and the newest consumer tech every year

      oh well I suppose they were going to get burned eventually.
      Does this mean UK people might stop buying new Audis and BMWs?
      http://www.cih.org/news-article/disp...housing_market

      Comment


        #4
        Why is SueEllen issuing warnings over consumer credit???
        'CUK forum personality of 2011 - Winner - Yes really!!!!

        Comment


          #5
          Originally posted by original PM View Post
          ah yes if only people didn't need to get a new car every 3 years and the newest consumer tech every year
          But you said 2 weeks ago:

          Originally posted by original PM View Post
          Consumption is the only driver of any economy.
          Take your pick, are you a champion of consumption or not?
          …Maybe we ain’t that young anymore

          Comment


            #6
            Originally posted by WTFH View Post
            But you said 2 weeks ago:



            Take your pick, are you a champion of consumption or not?
            That's a good memory.

            Spending someone else's money is not a good way forward.

            However this is not sustainable globally anyway as you always need someone at the bottom of the pile.

            Comment

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