Cruch to last at LEAST another 18 mnths

Generali

mewbie wrote: »

I don't have any tips about how to survive, but I have become aware of a simple fact, nothing clever like Generali's economic posts, or insightful really. It is this.

"If I lose my job I am f*cked"

Apologies for the swear word, but on this occasion it fits so well.

Fundamentally, that's what it comes down to. I know I keep banging on about it but the economy is just the sum of all the economic decsions we make as individuals.

If enough people are f*cked then the economy is f*cked.

Debt_Free_Chick

mewbie wrote: »

I don't have any tips about how to survive, but I have become aware of a simple fact, nothing clever like Generali's economic posts, or insightful really. It is this.

"If I lose my job I am f*cked"

This is all so often true and it shouldn't be .... provided we live within our means and have a "rainy day" savings account containing at least three months necessary outgoings.

And ... does no-one get redundancy/notice/severance these days? Or is it taken up by debt repayments?

Dan:_4

Debt_Free_Chick wrote: »

This is all so often true and it shouldn't be .... provided we live within our means and have a "rainy day" savings account containing at least three months necessary outgoings.

And ... does no-one get redundancy/notice/severance these days? Or is it taken up by debt repayments?

Yes, but in these hard times of recession it will not be easy to get another job. The job section in my local paper has reduced right down to only a couple of pages. The 'rainy day' savings wont last long.

Dithering_Dad

Debt_Free_Chick wrote: »

This is all so often true and it shouldn't be .... provided we live within our means and have a "rainy day" savings account containing at least three months necessary outgoings.

And ... does no-one get redundancy/notice/severance these days? Or is it taken up by debt repayments?

Pretty much echoing what Dan: has said. Even with zero debts and three months savings, the obvious cutbacks one would make (no beer, beans on toast, etc) and any redundancy (though if the firm goes bust then this might not amount to anything), you might last 5 months without pay but if we have a sustained recession or even depression as the more pessimistic members are touting, then what do you do next?

Rent/interest only mortgages don't pay for themselves, neither does council tax, gas, electricity (all of which have just gone up), water, insurance, etc.

You really learn the value of money when you have none!

amcluesent

>You really learn the value of money when you have none!<

Odd how millions, over several generations, have become accustomed to living entirely on benefits!

Middle class peeps who are laid-off need to learn how to scam the system! You'll find out soon enough it's not there to support you, all the tax you paid went to feather-bed the idle.

drbeat

Dithering_Dad wrote: »

There are so many posters that are rubbing their hands together with glee at the thought of a recession that it makes one wonder why they're going to immune from the effects. If they have a secret stretegy for survival, then I for one want to share in it!!!!

And do you want to share with us why you think an unsustainable house price boom is better alternative?

geoffky

18 MONTHS....HA HA in their dreams this is going to play out over the next decade..we have not seen anythink like this in our lifetime...over by christmas.. the war .that took two decades to get over and the debts took until the eighties to clear how long will it take for people to pay their trillion pounds of personal debt..the highest in the developed world...

geoffky

DITHERING DAD
There are so many posters that are rubbing their hands together with glee at the thought of a recession that it makes one wonder why they're going to immune from the effects. If they have a secret stretegy for survival, then I for one want to share in it!!!![/quote]


Have enought money in the bank....its that easy:rotfl:

logie28

Dithering_Dad wrote: »

Has it ever? I remember when this lot came in (with the economy nicely set up thanks to the outgoing tories) and promised that 'this time it will be different, no "spend, spend, spend", instead we'll have prudence and the 'golden rules'.

Hmnnn, a leopard can't change its spots.

The Tories set the economy up nicely for labour??? !!!!!!!!!!!! why blame the government all the time. ??

Did the Tories not go through a recession in the early 90s?? compare interest rates between now and then!!! This is a world recession if you haven't noticed, the big man in japan has not just been given the boot for not exporting enough sushi!!

Gordon brown will surely follow soon, but dont blame this government for world recession,

He might be a pillock prime minister but as a chancellor he did a good job.
might of spent spent spent but millions are better off (the poor) under this government than ever before, Tax credits, 10p tax (we are being slightly compensated now, but at least it was brought in) winter fuel allowance, investment in NHS (BADLY SPENT BY MANAGERS) and education.


The credit crunch is effecting all, if people took out 125% mortgages and borrowed beyond their means they are paying the price now, its unfortunate, it was a gamble, i dont think people should be slated for trying to better themselves but the gamble has not paid off,

At least under labour people had the chance like never before, no body could for-see the current climate, if they could they probably wouldn't of taken the gamble, at least they tried though and have a lot of experience now,,

Don't just blame the government , its to do with personal responsibility, like when, people used there vote!

dopester

“My personal view, for what it’s worth, is that it will take 18 months to play through the system,” he said. “It’s going to take 18 months before US house prices have started to rise again - which is what’s required for banks to have the confidence to start lending again. It will take a long time to play out.”

Crazy. The US Treasury has the whole gaggle of hillbilly cousins to deal with - Freddie Mac, Fannie Mae, Sallie Mae, Farmer Mac, Ginnie Mae and so only .... and how much capital to supporting loans have they got? And how many US banks with rags for balance sheets?

It could inflate with Argentine money but hyperinflation just destroys everything - it would lose multiple times more than it could gain as an alternative to deflation. Painful times ahead which just have to play out, but taking a lot longer than 18 months.