Perceptions of the recession

lostinrates

BlondeHeadOn wrote: »

Yes we would have had this boom without the nmedia, there have been booms in the past (tulip fever, south sea bubble etc.) when news was a lot harder to come by and mostly by word-of-mouth.

True, thank you.

But I'm not totally clear what the product was in this boom...housing? or simply credit? I think it has to have been credit, which I think needed the serious ramping of pressure to want other stuff. I mean without media/advertising/make yourself rich and own lots of stuff media coverage debt doesn't sound half so appealing.,

Previous booms, tulips, cochins, even the share rush in US preceeding the Great Depression...none of which I pretend to be knowledgeable about...but it seems to me they offered something more tangible, more straightforward investing than simply...debt.

lostinrates

chucky wrote: »

Unemployment is around 6% that means that 94% of people are still working! Estimated unemployment figures are predicted to hit 10% that's 90% of people still inwork.

.

I agree, but I presume that figure includes people on four day weeks and reduced work load, people who have jobs in area- both geographical and of industry where there has been redundancy and therefore risk of not getting another job is higher should you be made redundant..thats got to put pressure on people?

chucky

ad9898 wrote: »

I do agree with that chucky, however fear is driving a lot of people at the moment, most people I know are still working like you say, but all of them fear losing their job, so have cut right back on spending, or are paying down debt.

my post might have sounded as if i didn't care but i do have total sympathy for anyone losing their job - especially in the areas where there are not that many job opportunities.

fear is the danger - for example i've cut back on my spending and i'm still earning the same money as i was before. it's the 'just in case' factor that we seem to be worried about. why do we do that?

lostinrates wrote: »

I agree, but I presume that figure includes people on four day weeks and reduced work load, people who have jobs in area- both geographical and of industry where there has been redundancy and therefore risk of not getting another job is higher should you be made redundant..thats got to put pressure on people?

as above i have total sympathy for people who have lost their jobs in areas that do not have huge job opportunities. i have even more sympathy for parents who lose their jobs in these areas as they would need to uproot their families just to get another job or stay put hoping another job will come along - the impact on children here is under estimated.

stevetodd

ad9898 wrote: »

Well Icesave and KE wouldn't exist, they are internet based, no media, no internet.

Where exactly would you look at property prices ??, only in the window of an EA, and who looks there these days:D.

I only said 90% of the people wouldn't know what the FTSE was at without the media, not the other things on your list.

Yes exactly no one looks because the recession is well known, thank you. You can't have it both ways ie that people don't look cos there is a recession but they wouldn't look anyway (cos they would). I do concede that the less intelligent would be less likely to know though.

slipthru

Yes i would have noticed because a few people i know have been told to look for other jobs.

Thrugelmir

chucky wrote: »

fear is the danger - for example i've cut back on my spending and i'm still earning the same money as i was before. it's the 'just in case' factor that we seem to be worried about. why do we do that?

This crisis is unlike anything experienced before. People are being affected at all skill levels without exception. Even the public sector will come under pressure as budgets are tightened up. This will result in people working for "less".

All of this suggests a period of minimal real growth. Maybe we are all witnessing a sea change in attitude to money and risk.

BuddyBonthenet

Thrugelmir wrote: »

This crisis is unlike anything experienced before. People are being affected at all skill levels without exception. Even the public sector will come under pressure as budgets are tightened up. This will result in people working for "less".

All of this suggests a period of minimal real growth. Maybe we are all witnessing a sea change in attitude to money and risk.

In a nutshell.

chucky

Thrugelmir wrote: »

This crisis is unlike anything experienced before. People are being affected at all skill levels without exception. Even the public sector will come under pressure as budgets are tightened up. This will result in people working for "less".

All of this suggests a period of minimal real growth. Maybe we are all witnessing a sea change in attitude to money and risk.

Really!? 50% of the people on this poll don't think so.

as i said 94% employment rate.
1% interest rates
low inflation

if you're in work i don't think things are really that bad

Thrugelmir wrote: »

Maybe we are all witnessing a sea change in attitude to money and risk.

Maybe we won't

Thrugelmir

chucky wrote: »

Really!? 50% of the people on this poll don't think so.

as i said 94% employment rate.
1% interest rates
low inflation

if you're in work i don't think things are really that bad



Maybe we won't

Within that 94% employment rate a lot of people have lost overtime, shift allowances and are working shorter basic time. So are earning far less. A lot of people could yet lose their jobs in the next 6 months as the credit crunch continues to bite.

If you've a tracker mortgage a 1% base rate is wonderful. ( Myself included). However this is only a short term measure to keep the money markets moving. Ultmately the cost of lending will rise to cover borrowing defaults and attract the funds required to cover the UK's budget deficit.

Low inflation? Petrol prices have already started to rise from their lows. Imported goods and holidays are costing more due to the current exchange rates. People with large mortgages will no longer see inflation erode debt. Repaying debt will become a long haul for some.

People in work will be paying for those out of work. Very easy to take an 'I'm all right Jack' attitude. This where people in this country differ seem to those in the US ( where I have a number of friends). As they have far more of a community spirit. Something which Obama has tapped into.

Spendless

Boarded up/shut up businesses where Woolworths, Adams, a perfume shop, 2 card shops, The works, shoe shops, a national lottery kiosk, a traditional pub, a play-pub and a pub/restaurant used to be would be giving me a clue even if I wasn't finding that I can't even get thru to an interview when applying for work and hubby hadn't been asked to take a pay-cut from next month.