The Worst Is Yet to Come": If You're Not Petrified, You're Not Paying Attention

purch

Well, if you dont know what Option ARM is, you will do by next summer

Not having an unhealthy interest in the Mortgages of middle America, nor having a minor understanding of Option ARM's is a major 'faux pas' in the saloon Bars of British Pubs in 2009 :eek:

What would you talk about ??

Everything else is sooooo 2008 :rolleyes:

mbga9pgf

I am curious as to wonder what you have to lose? It interests me because what goes on in Americas banks has a direct impact on UK mortgage lending as a result of the impact on global finance. Why would I buy a house now if global finance is going to remain constrained until 2013? Prices may not keep on dropping like a stone, but there is sure as hell not going to be a huge recovery.

Whilst I am knocking off 3 years mortgage payments per year in savings, I would say it is definately in my interests what is going on on the other side of the atlantic.

As for pubs, I enjoy a good Sunday Roast, but alas, I do not drink (i know... )... due to medical problems. I generally would converse about the lovliness of the barmaids fantastic wrack though if you were going to push me on the issue.

amcluesent

All this talk of U or V or W shaped recession's is a nonsense.

We are enjoying a bear-rally, the next deep plunge is on the horizon. The effect of QE will compound the usually rise in inflation to service debt while commodity prices rise as BRIC recovers, so we will return to a severe stagflation with 3M or more on the dole, but with inflation easily exceeding 10%.

The likely break-down in the Euro zone will result in waves of economic migrants and the imposition of trade-barriers.

The social tension will certainly result in major riots in the urban areas and a collapse in business confidence as the FTSE100 tests 3,500 at the end of 2010.

The overhang of the public-sector debt, dodgy PFI wheezes and plummeting tax income will oblige the govt. to take 20% off the public sector budget and cut the headcount by 500,000 over 3 years.

As even jobs paying minimum wage are greatly prized, house prices will undershoot the mean to 2.5x average wage.

That's a best-case scenario.

*MF*

One of Britain’s most closely watched economic indicators has heavily overstated the quantity of high street sales over the past two years, the Office for National Statistics admitted on Friday.

Britain’s supplier of official statistics conceded that since the financial crisis began in August 2007, it has overstated the volume of retail sales growth by 56 per cent.

Full article here:

http://www.ft.com/cms/s/0/0b4f8a9c-418a-11de-bdb7-00144feabdc0.html?nclick_check=1

vivatifosi

Degenerate wrote: »

Pension funds have been a disaster waiting to happen for a long time. Final salary pensions are not and never were sustainable over the long term. If anyone else offered you a magic investment scheme with no risk and a guaranteed return, wouldn't you smell a rat? They're basically giant Ponzi schemes, and as people continue to retire and live longer, they are bound to unravel.

Interesting comment Degenerate. I'm a trustee of a final salary scheme that was closed to new entrants. Although like most schemes I would imagine we have a small deficit, we're well placed to fill the gap through additional contributions. I wouldn't call this one a Ponzi scheme.

However, I'm also aware of schemes, including money purchase, that you look at what they're in and your first instinct is "!!!!!!?" (I'm not talking my fellow poster here). People are way too passive and put into company pensions (both DB and DC) without really knowing what they mean or where their money is being invested. Its another one of those areas where the lessons from the past just don't seem to get learned.

Mozette

Degenerate wrote: »

Pension funds have been a disaster waiting to happen for a long time. Final salary pensions are not and never were sustainable over the long term. If anyone else offered you a magic investment scheme with no risk and a guaranteed return, wouldn't you smell a rat? They're basically giant Ponzi schemes, and as people continue to retire and live longer, they are bound to unravel.

Which why I can never understand why the govt is so keen to stop people drinking & smoking; I'm just ensuring I don't get too much pension!

mbga9pgf

They need you to work till your 70, paying taxes!

purch

I would say it is definately in my interests what is going on on the other side of the atlantic.

Yep, sure we all need to pay attention.

But I am still wondering why anyone would need to be petrified ?.

P.S. Any update on the breaking "news"

a BIG bank in the US has defaulted on a shedload of debt...

??

whathavewedone

What's the point in being petrified?

Mass panic isn't going to help anyone.

Life is short we shouldn't spend it worrying about things that might never happen.

baileysbattlebus

A nice piece satire from The Onion.

Could this be us in few months time????

WASHINGTON—After nearly four months of frank, honest, and open dialogue about the failing economy, a weary U.S. populace announced this week that it is once again ready to be lied to about the current state of the financial system.
Tired of hearing the grim truth about their economic future, Americans demanded that the bald-faced lies resume immediately, particularly whenever politicians feel the need to divulge another terrifying problem with Wall Street, the housing market, or any one of a hundred other ticking time bombs everyone was better off not knowing about.
In addition, citizens are requesting that the phrase, "It will only get worse before it gets better," be permanently replaced with, "Things are going great. Enjoy yourselves."

According to a CBS News/New York Times poll, 98 percent of Americans no longer appreciate President Barack Obama's attempts to break down the economic crisis into simple terms they can understand. Instead, many say the president should have the decency to insult their intelligence by using complex jargon to confuse and deceive them, perhaps even implying that the subprime mortgage fallout was just a big misunderstanding that resulted from a clerical error.

Full article in the link
http://www.theonion.com/content/news/nation_ready_to_be_lied_to_about