End of QE

JonnyBravo

chucky wrote: »

but the comment "Many are already choking on their current debt" is a pretty dramatic statement that i don't agree with at all.

Really?

I'd say many are.
That's very different to a "majority" or anything like that but I'm sure many people are struggling with their debt.

chucky

JonnyBravo wrote: »

Really?

I'd say many are.
That's very different to a "majority" or anything like that but I'm sure many people are struggling with their debt.

fair point - many are. consumer debt especially.

JonnyBravo

JonnyBravo wrote: »

Really?

I'd say many are.
That's very different to a "majority" or anything like that but I'm sure many people are struggling with their debt.

chucky wrote: »

fair point - many are. consumer debt especially.

Record personal insolvency right on cue

http://newsvote.bbc.co.uk/1/hi/business/8499939.stm

Snooze

chucky wrote: »

these forums do make make people present things in the most dramatic way. do they do it to attract attention as they are missing something at home? i don't know, just putting it out there...

i don't know any people that are choking with debt, i know less than a handful of people that have been made uemployed. tyhey found work within a couple of months.

they were careful with their money and i guess they could have struggled if they were unemployed for a longer period.

but the comment "Many are already choking on their current debt" is a pretty dramatic statement that i don't agree with at all.

Hmm I'm not so sure. Discussing your debts and how you're being hounded by Debt Collection companies is hardly pub talk and nor is it something you would discuss with your pals either as it's a sensitive and embarrassing topic for most people.

Within my own circle of Mr. Average friends and family over this past 12 months :

Friend 1 - made redundant from leisure industry job in Jan 09 and hasn't been able to find anything permanent since. Mortgage of £550 per month and everything used to go on the credit cards which were kept in check by a decent income. Money ran out in March 09 and has only been able to pay small amounts on the mortgage since. The repo order goes through court on 22nd of this month. Not including the mortgage, he has debts of around £50k.

Friend 2 - made redundant from engineering job in Mar 09 and didn't find anything else til Oct 09 when he got a job in a model shop. Was made redundant again after Christmas. Doesn't have any debts luckily, but lives with his partner who works f/t on a minumum wage job and are both struggling like hell just to keep their heads above water with rent/foods/bills.

Brother - customer gone backrupt owing him £47k which realistically he hasn't got a hope in hell of ever seeing.

Me - similar situation to my brother although my exposure is only £5k. I received a tip-off in November about one of my customers being in financial trouble. November's invoice was paid in full and on time but I'm still waiting for December. The usual "the cheque is in the post" style excuses quickly followed and then I got bored of waiting and switched off their service on 10 Jan. They started using a different supplier for a while until I found out who it was and informed them. Their website has been informing the world that they have ceased trading since last weekend so that's £5k of mine that has disappeared into the ether never to be seen again.

Obviously the last 2 examples are company debt and not personal, but it still has a domino effect further down the line. The company that I dealt with employed around 20-25 people and ar kid's was around 150 folks, so that's another 175 joining the end of an already humungous job-seeker queue with no real money coming in to service rent/mortgages/credit cards/loans/food/bills.

carolt

My daughters' music teaching co has just gone bust - right PITA.

Leaving all the music teachers unpaid for last term's work and this term's.

They're being good enough to teach anyway. But that's lots of people struggling. Big co, over-extended on debt getting new premises.

chucky

Snooze wrote: »

Hmm I'm not so sure. Discussing your debts and how you're being hounded by Debt Collection companies is hardly pub talk and nor is it something you would discuss with your pals either as it's a sensitive and embarrassing topic for most people.

i guess my friends and i must be lucky - sorry to hear about the issues that you mentioned.
hope that they get sorted without too much pain

Generali

Hey I'm a banker. I know tons of people that are in a right state WRT work. Both hedge funds I worked for no longer exist, one bank I worked for now belongs to the Government (not the UK Government) and another is, I believe, privately owned still but insolvent with the insolvency being hidden by the Fed and some groovy accountancy skills.

bo_drinker

Personal insolvencies reach record levels
Nick Hasell
8 COMMENTS
RECOMMEND? (2)

(Anthony Devlin/PA)
Although the number of people declared insolvent increased, company liquidations fell
A record 134,142 people in England and Wales were declared insolvent last year — an increase of nearly 26 per cent on 2008, according to figures released today by The Insolvency Service.

More than half of these were bankruptcies, with the remainder made up of individual voluntary arrangements (IVAs) and Debt Relief Orders, a new insolvency process introduced last year.

However, the number of company liquidations fell in the last three months of 2009 — to 4,566, down 1.7 per cent on the previous quarter and down 1.1 per cent year-on-year.

Last month, Begbies Traynor, the AIM-listed insolvency practitioner, said that a lower than expected rate of company failures meant full-year profits would be lower than forecast.

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Begbies cited the impact of HM Revenue & Customs’s "time to pay" scheme, which has enabled struggling companies to defer more than £4 billion of PAYE tax and national insurance liabilities, and kept many afloat when they might otherwise have failed.

http://business.timesonline.co.uk/tol/business/industry_sectors/banking_and_finance/article7016257.ece

baby_boomer

The stock market today has finally taken on board the implications of ending QE & it can't stand what it sees.

It can't work out who will buy the £billions of gilts now that the government has effectively stopped buying its own debt.

Unless interest rates soar .

The oil tanker like housing market takes longer to do its sums.

But it will in due course.

For those innocents who think that mortgage rates won't go up much - just think about the need for banks to make money to pay back government debt.

And the need of the building societies to raise savings capital to lend on their mortgages.

And the need of both - to meet international requirements - to raise their existing capital through extra profits - in order to prove to the world that they are safe and secure institutions.

StevieJ

baby_boomer wrote: »

The stock market today has finally taken on board the implications of ending QE & it can't stand what it sees.


.

Don't be ridiculous, it is all about the Piigs especially Greece, the Ftse is one of the best performers today

BTW youngsters are not very happy with you :eek:

"baby boomers reveal themselves to be simply the most spoilt generation in the history of the entire planet", "a parasitic generation", "thanks for looking the other way", "it's a generational mugging".

http://www.guardian.co.uk/money/2010/jan/31/unemployed-graduates-credit-crunch-andrew-hankinson