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What happens when.......?

rich744
rich744 Posts: 52 Forumite
Part of the Furniture 10 Posts Combo Breaker
in Debate House Prices & the Economy
What happens when, those that are heavily in debt, default on those debts in large numbers.....?

What are the consequences of an en-mass default?

What happens to society, the value of money and assets....?

I think we're in the process of watching a real life economic experiment unfold.
«1

Comments

  • amcluesent
    amcluesent Posts: 9,425 Forumite
    Theyve been printing money like mad things to prevent this. If t gets worse, they will drop £20s from helicopters.
  • Graham_Devon
    Graham_Devon Posts: 58,560 Forumite
    Part of the Furniture 10,000 Posts Combo Breaker
    House prices rise.

    Think thats the answer?

    In all honesty though, it would have happened, but it's been stopped. And it will be stopped again if it looks to happen again. Mass default won't happen, unless it's voluntary.
  • vikingaero
    vikingaero Posts: 10,920 Forumite
    Part of the Furniture 10,000 Posts Combo Breaker
    Mass defaults = more click through revenue for Consumer Action Group!
    The man without a signature.
  • markharding557
    markharding557 Posts: 3,116 Forumite
    The country ends up where it is today
  • Heyman_2
    Heyman_2 Posts: 1,819 Forumite
    That's pretty much what happened in the US just over 3 years ago. It was called the 'Credit Crunch'.
  • ukcarper
    ukcarper Posts: 17,337 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    Graham_Devon wrote: »
    House prices rise.

    Think thats the answer?

    In all honesty though, it would have happened, but it's been stopped. And it will be stopped again if it looks to happen again. Mass default won't happen, unless it's voluntary.

    What has been done to help people with credit card dept or any unsecured dept for that matter. Why do you relate everything to Mortgage dept.
  • smeagold
    smeagold Posts: 1,429 Forumite
    Graham_Devon wrote: »
    House prices rise.

    Think thats the answer?

    In all honesty though, it would have happened, but it's been stopped. And it will be stopped again if it looks to happen again. Mass default won't happen, unless it's voluntary.

    It was prevented through dropping IRs to 0.5% so 'next time' they can't drop IR's any lower unless they're going to start paying people take out loans, so they may as well drop £20s from helicopters. How will they prevent people from defaulting? please explain.
    Hi, we’ve had to remove your signature. If you’re not sure why please read the forum rules or email the forum team if you’re still unsure - MSE ForumTeam
  • ukcarper
    ukcarper Posts: 17,337 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    smeagold wrote: »
    It was prevented through dropping IRs to 0.5% so 'next time' they can't drop IR's any lower unless they're going to start paying people take out loans, so they may as well drop £20s from helicopters. How will they prevent people from defaulting? please explain.

    That had a lot of effect on credit card and other unsecured dept and that’s the dept that is getting written off.
  • Graham_Devon
    Graham_Devon Posts: 58,560 Forumite
    Part of the Furniture 10,000 Posts Combo Breaker
    ukcarper wrote: »
    What has been done to help people with credit card dept or any unsecured dept for that matter. Why do you relate everything to Mortgage dept.

    Bankruptcy lite?
  • IronWolf
    IronWolf Posts: 6,445 Forumite
    Part of the Furniture 1,000 Posts Name Dropper Combo Breaker
    There will be huge black holes in balance sheets, and someones got to cover it, i.e. sensible people like you and me.

    If even the tax payer cant cover it, you're probably looking at the end of the currency, and some seriously hard times, in which your priorities will be guns, food and possibly gold.
    Faith, hope, charity, these three; but the greatest of these is charity.
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