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The most worrying statistic so far...
ianmr65
Posts: 596 Forumite
From the FT
"The Bank said mortgage approvals for house purchase slumped from 58,000 in April to 42,000 in May, 28 per cent lower even than a month earlier and 64 per cent lower than the same month in 2007...."
Yes we know that Ian, it's in the BBC post...Hmm But the article follows on with this little nugget:
".....increase in total net lending to individuals fell from £7.3bn in April to £5.4bn in May, the Bank said, even though secured lending for remortgaging and other purposes was relatively stable.
However, net consumer credit increased by £1.4bn, above the previous six month average, thanks to a rise in credit card borrowing that suggests people are reluctant to cut consumption as living costs rise...."
So all of you wondering why retail sales figures are still stableish, and unemployment hasn't started to slide faster... have your answer.
Not that we are manufacturing more, producing more, or getting more efficient or productive, quite the reverse, productivity growth has fallen from 1.6% yoy to 0.6%!!... but in the face of the biggest credit crisis, the world has ever known... the good old british public is STILL!!! borrowing it's way out of it's short term difficulties.
Wonder what the hybrid of a lemming, and an ostritch is, a lemmstrich, we have become a nation of lemstriches!!:mad: :mad: :mad:
http://www.ft.com/cms/s/0/28a2e1e0-4684-11dd-876a-0000779fd2ac.html
"The Bank said mortgage approvals for house purchase slumped from 58,000 in April to 42,000 in May, 28 per cent lower even than a month earlier and 64 per cent lower than the same month in 2007...."
Yes we know that Ian, it's in the BBC post...Hmm But the article follows on with this little nugget:
".....increase in total net lending to individuals fell from £7.3bn in April to £5.4bn in May, the Bank said, even though secured lending for remortgaging and other purposes was relatively stable.
However, net consumer credit increased by £1.4bn, above the previous six month average, thanks to a rise in credit card borrowing that suggests people are reluctant to cut consumption as living costs rise...."
So all of you wondering why retail sales figures are still stableish, and unemployment hasn't started to slide faster... have your answer.
Not that we are manufacturing more, producing more, or getting more efficient or productive, quite the reverse, productivity growth has fallen from 1.6% yoy to 0.6%!!... but in the face of the biggest credit crisis, the world has ever known... the good old british public is STILL!!! borrowing it's way out of it's short term difficulties.
Wonder what the hybrid of a lemming, and an ostritch is, a lemmstrich, we have become a nation of lemstriches!!:mad: :mad: :mad:
http://www.ft.com/cms/s/0/28a2e1e0-4684-11dd-876a-0000779fd2ac.html
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Comments
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From the FT
"The Bank said mortgage approvals for house purchase slumped from 58,000 in April to 42,000 in May, 28 per cent lower even than a month earlier and 64 per cent lower than the same month in 2007...."
Yes we know that Ian, it's in the BBC post...Hmm But the article follows on with this little nugget:
".....increase in total net lending to individuals fell from £7.3bn in April to £5.4bn in May, the Bank said, even though secured lending for remortgaging and other purposes was relatively stable.
However, net consumer credit increased by £1.4bn, above the previous six month average, thanks to a rise in credit card borrowing that suggests people are reluctant to cut consumption as living costs rise...."
So all of you wondering why retail sales figures are still stableish, and unemployment hasn't started to slide faster... have your answer.
Not that we are manufacturing more, producing more, or getting more efficient or productive, quite the reverse, productivity growth has fallen from 1.6% yoy to 0.6%!!... but in the face of the biggest credit crisis, the world has ever known... the good old british public is STILL!!! borrowing it's way out of it's short term difficulties.
Wonder what the hybrid of a lemming, and an ostritch is, a lemmstrich, we have become a nation of lemstriches!!:mad: :mad: :mad:
http://www.ft.com/cms/s/0/28a2e1e0-4684-11dd-876a-0000779fd2ac.html
Something very similar wrt credit card spending happened in the States as their housing market fell and people started feeling the pinch. Basically, lots of essential spending got put onto credit cards as ready cash dried up.
I'm not so sure that the increase in CC debt here is down to consumerism living on, I think an increasing number of people are using cards to meet basic 'cost of living' bills.
( I would say that people are cutting consumption but probably not as much as they should be.)
The real crunch will be when unsecured credit starts becoming tricky to get/get extended and onerous to service (due to higher interest rates being charged). At this point the general consumer is going to be squealing like a stuck pig.--
Every pound less borrowed (to buy a house) is more than two pounds less to repay and more than three pounds less to earn, over the course of a typical mortgage.0 -
I'm not so sure that the increase in CC debt here is down to consumerism living on, I think an increasing number of people are using cards to meet basic 'cost of living' bills.
( I would say that people are cutting consumption but probably not as much as they should be.)
I'd have thought that.... were it not for the stability and/or increase in retail sales, across the board...
if consumerism were on the wane these figures should be dropping, (except for food) and they are not!! 0 -
if you are going to go bankrupt, might as well go bankrupt for 50k as opposed to 10k .......It's a health benefit ...0
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if you are going to go bankrupt, might as well go bankrupt for 50k as opposed to 10k .......
That seems to be the opinion of many people m00...
Theres so much help out there to deal with your debt. People are just too stupid and have such a short foresight of the future that end up in positions like this...
If i did have any sort of debt i would be working all the hours to clear it within a reasonable time... Like the polish and slovakians that work with us. Working double shifts 16 hours just to make an extra few bob to make a better life for them. Whereas the young british people want everything now with out saving and any hard work to earn it.
Rant over lol0 -
That seems to be the opinion of many people m00...
Theres so much help out there to deal with your debt. People are just too stupid and have such a short foresight of the future that end up in positions like this...
If i did have any sort of debt i would be working all the hours to clear it within a reasonable time... Like the polish and slovakians that work with us. Working double shifts 16 hours just to make an extra few bob to make a better life for them. Whereas the young british people want everything now with out saving and any hard work to earn it.
Rant over lol
Makes me glad im marrying a polish girl (who speaks great english). She's hard working, doesn't like her job but will never quit.... she knows the value of money and we are both working hard towards a good future.
We have no real debts, have two reasonably good jobs for the area, have paid off our 4k wedding in 6 months (no credit used) and have 25k saved for a deposit on a house... just lying in wait for houses to fall alot more :P.
Life is good.. if you plan carefully... dont and you shoot yourself in the head.0 -
Peeps probably putting one last good holiday on the CC, knowing that for a decade it'll be fish-paste sandwiches at Skegness.
The figures I'd like to see are aged debt at 60, 90, 120 days for arrears on mortgages, CC, utility, HP etc.
I doubt democratic politicians will be able to take the measures to control inflation with crippling interest rates for people who are WELL over-borrowed. Inflation will be allowed to return to inflate away the debt. Buy gold!0 -
amcluesent wrote: »The figures I'd like to see are aged debt at 60, 90, 120 days for arrears on mortgages, CC, utility, HP etc.
"Aged debt" for barristers has a different meaning - the money solicitors owe us!
When I get an aged debt printout from Chambers it shows money owing 0 - 6 months, 7 - 12 months, 13 - 18 months, 18 - 24 months, and 24 months+. Too many figures in that last column.......much enquiry having been made concerning a gentleman, who had quitted a company where Johnson was, and no information being obtained; at last Johnson observed, that 'he did not care to speak ill of any man behind his back, but he believed the gentleman was an attorney'.0 -
Makes me glad im marrying a polish girl (who speaks great english). She's hard working, doesn't like her job but will never quit.... she knows the value of money and we are both working hard towards a good future.
We have no real debts, have two reasonably good jobs for the area, have paid off our 4k wedding in 6 months (no credit used) and have 25k saved for a deposit on a house... just lying in wait for houses to fall alot more :P.
Life is good.. if you plan carefully... dont and you shoot yourself in the head.
You can do that as a home grown brit too .
My English wife (speaks good English) manages not to spend all her money on shoes and handbags and works hard making fish paste sandwiches in skeggy.;)
:cool: hard as nails on the internet . wimp in the real world :cool:0 -
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That seems to be the opinion of many people m00...
Theres so much help out there to deal with your debt. People are just too stupid and have such a short foresight of the future that end up in positions like this...
If i did have any sort of debt i would be working all the hours to clear it within a reasonable time... Like the polish and slovakians that work with us. Working double shifts 16 hours just to make an extra few bob to make a better life for them. Whereas the young british people want everything now with out saving and any hard work to earn it.
Rant over lol
16 Hour Shifts!
nah, i'll rather just go bankrupt and start again in 6 years.0
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