Moody's issues warning over UK consumer credit Moody's issues warning over UK consumer credit
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    Default 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-


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  2. #2

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    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.

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    Quote 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?

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

  5. #5

    Prof Cunning @ Oxford Uni

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    Quote 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:

    Quote 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?
    Strong and Stable Moderation

  6. #6

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    Quote 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.

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