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dudleyboy

Conrad wrote: »

I agree this time could be worse as there is more debt as a proportion, however, according to the Beebs Evan Davies we also have a great deal more in assets, to include property equity than we ever did before (I think he reported there are 3 x more assets than debts).

...

We could see another great depression but I think this is less likely than it was in the 1930s when the majority had little in the way of assets / equity to fall back on.

Crikey, if we're including property equity as an "asset" then we really are fu-...

I'm curious as to what other assets people have. Brand new (depreciating) hulking great US-sized, gasoline guzzlers, which people will soon be unable to run, want or trade in? Nice shiny things that now no one can afford to buy, even second hand (and that's if they still regarded them as desirable)? Stocks and shares which are seeing their values wiped on an almost daily basis?

Gold? Hmm... perhaps... but didn't Uncle Gordon sell most of our reserves off on the cheap so we could afford to bomb a couple of countries into oblivion?

Private individuals may be wealthy or connected enough to protect themselves from the fallout but as a nation, a society, and as a world super power, I think we're royally screwed.

slipthru

RichardDJ wrote: »

This forum is beginning to depress me, I may stop visiting...

It's not depressing we need a shake up to get things moving in the right direction.

mizzbiz

Conrad wrote: »

I agree this time could be worse as there is more debt as a proportion, however, according to the Beebs Evan Davies we also have a great deal more in assets, to include property equity than we ever did before (I think he reported there are 3 x more assets than debts).

Are those the same assets that are falling in value on a daily basis?

Property assets are losing a fortune each month. Your 60% equity today depends on someone buying your home at the price you think it is worth. Your 60% become 50% next month and so forth on a downward spiral. How depreciating, unsellable 'assets' will protect people from the coming storm I don't know. The comment about there being 3x assets than debts is absolute nonsense if you look at it this way.

Other 'assets', cars, televisions etc, lose most of their value the first time you use them. They're not worth what you bought them for, yet you pay interest on the debt for them. If you pay £14000 for a car which is worth £5000 a year later, you have almost 3x more debt than asset.

As per the below post on stocks, shares and other market-based investment.

slipthru

Conrad wrote: »

I agree this time could be worse as there is more debt as a proportion, however, according to the Beebs Evan Davies we also have a great deal more in assets, to include property equity than we ever did before (I think he reported there are 3 x more assets than debts).

Thinking of people around me, typically they have about 60% equity and small if any debts (I know this beacsue I have seen all the neighbours for mortgage advice! - cringey eh!).

My theory is that we are witnessing a big transference in wealth away from those that have not had the abaility to retain assets, over to those that already have more than thier fare share.
This stems from the fact council tenants declined as a species and home ownership grew, but the fact is a significant proportion are just not cut out for servicing debts nor retaining asets.

We could see another great depression but I think this is less likely than it was in the 1930s when the majority had little in the way of assets / equity to fall back on.

Mine is the other way round almost everyone i know is in debt, not necessary large amounts though.

Also aren't all these assets falling at this moment in time.

I actually think we have more to lose now.

WTF?_2

mizzbiz wrote: »

Are those the same assets that are falling in value on a daily basis?

Property assets are losing a fortune each month. Your 60% equity today depends on someone buying your home at the price you think it is worth. Your 60% become 50% next month and so forth on a downward spiral. How depreciating, unsellable 'assets' will protect people from the coming storm I don't know. The comment about there being 3x assets than debts is absolute nonsense if you look at it this way.

Other 'assets', cars, televisions etc, lose most of their value the first time you use them. They're not worth what you bought them for, yet you pay interest on the debt for them. If you pay £14000 for a car which is worth £5000 a year later, you have almost 3x more debt than asset.

As per the below post on stocks, shares and other market-based investment.

Bang on about most so-called 'assets'. If you have to have a firesale of your possessions to get cash then you're not really in good shape, are you? And of course if they were bought with debt which is still being repaid then they aren't really an asset at all. Unfortunately, you can't get rid of the debt along with the 'asset'.

There are people with quite a bit of equity in their homes of course - but if you have to start securing credit off of your property to keep your head above water you are in dire straits.

moanymoany

This could be the answer, It is a current thread on money saving old style.

http://forums.moneysavingexpert.com/showthread.html?t=3406&highlight=survival

It is about survival when the apocalypse comes.

pickles110564

dudleyboy wrote: »

I'm curious as to what other assets people have.


I have a 232,000 mile BMW that does not owe me a penny, only worth about £500 though.

MrDT

moanymoany wrote: »

http://forums.moneysavingexpert.com/showthread.html?t=3406&highlight=survival

Haha excellent thanks

Someone already got in there first with a link to the zombie forum. Bad times