An economic crash in the UK is inevitable

[stackpole]

I was just looking at an article on Motley Fool, and it doesn't make happy reading. It shows how the chancellor's "economic miracle" has been nothing more than one long borrowing binge. People are increasing their debt just to stand still, which is clearly unsustainable. What about this:

• Our non-mortgage debt is increasing by 11% per year (from £80 billion in 1997 to 190 billion today).
• Our mortgage debt is increasing by 12.7% a year (from £827 billion in 2004 to £932 billion today).
• Non-mortgage housing expenses (particularly council tax) are increasing by 6% a year.
• Our wages haven't increased by anything like these amounts - we are spending 10% more than we earn.
• UK growth is going down, so the Chancellor must raise taxes somehow.
• Unemployment has now risen for the seventh month in a row.
• We are not saving nearly enough for a rainy day or for retirement. We are miles short and can never make it up. 55% of working age adults have no pension.

On top of this, the UK is increasing its debt due to an increasing balance of trade deficit. Thank you New Labour.

I cannot see how this lot can be put right in a controlled way. I think a painful crash is inevitable.

[Francko]

We are doomed, doooommmeeeeed.....

[SandyDown]

I guess its time for another happy poem


The Happy Poem By Jason Davis


Butterfly ribbons and ice cream delight
Money everywhere falling from the sky
Everything wrong has been made right
Now we have clean burning fuel and even space flight

Mystical lands once far away
Now in our backyard for us to go play
Magical stars show us the way
Light years we travel but we make it okay

Brilliant colors fill the air
Look now I have all my hair
Everything I ever lost
Is now setting in this giant pot

Love and Joy fills the room
Look I just found a magic broom
I soar high above the clouds
Right beside me are all my pals

Everything in the world is right
All the blind now have their sight
All the people sing in joy
In perfect harmony for all to enjoy

[Lucifer Box]

Don't worry, the government is going to start pumping public money into the housing market via shared equity deals. Before you know it house price increases will be whizzing along at 25% pa again and the great unwashed can keep their borrowing binge going quite nicely.

[sunnysan]

I read that article,

While I was reading it I was spammed by the Motley Fool with an email offering me cheap deals on credit cards and how I can save by consolidating my debt.

As far as NL are concerned, remember the old homo Abe,

You can fool some of the people all of the time, and you can fool all of the people some of the time, but you can't fool all of the people all of the time. - Abraham "My boy you look sexy in those jodphurs" Lincoln.

[thunderlizard]

Crash - I hope so! I've been working like a dog for the past five years, so I could really do with a long holiday and a cheap house.

[Joe Bloggs]

Have always had a bit the feeling that Browns claim that he's created some sort of economic miracle, no more boom and bust, was possibly built on sand. Especially since his trick of stretching his proclaimed 'economic cycle' to fudge the amount of borrowing he was doing.

Thing is, if he'd probably kept to his claims of 'prudence' etc, he might have done it and the Govt would be sitting on a huge surplus at this point rather than facing the prospect of increasing taxes in a downturn to cover all the billions he's committed for very little in return.

GB

[wendigo100]

I read that article,

While I was reading it I was spammed by the Motley Fool with an email offering me cheap deals on credit cards and how I can save by consolidating my debt.

And it is particularly interesting when you read the author's sign-off: "If I've played my cards right, this article will shock you into doing something to strengthen your personal finances, and my cunning plan will have worked!"

He's on commission?

Nevertheless, worrying times. For now though, the only ones worrying are the few who can see the wood for the trees.

[Rebecca Loos]

what are you lot doing posting here on a Saturday?

I have an excuse, I am at work. What's yours?
Surely you're not coming here from home.... the wife or kids could see you!

[wc2]

I have complete faith in Tony Blurrrrr.

It will never happen to us !!

After all we are British !! Stiff upper lip.

As far as I know the Labour government have never lied to us

WC2 in - Complete fecking liar mode