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Credit Crunch?

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Comments

  • pointypenguin
    pointypenguin Posts: 1,768 Forumite
    A bond is just like a loan in that, by buying a bond you are lending the government money which they pay you interest on then return the capital after a given period of time.. Governments issue these to cover surplus spending.
    Weekly Spend Challenge: £0/£30


  • wecanhelpu
    wecanhelpu Posts: 630 Forumite
    Generali has tried to explain the way the "market" works. It's all a bit technical

    and hard to understand for the layman. But don't worry because there's an

    easier way to understand this credit crunch that he is talking about -

    Just look some of the recent threads where people have said things like

    "We offered £200,000 for a house but our valuation has come back saying

    the house is only worth £190,000. What can we do"?

    Or look on the DFW forum and people saying "Our lenders have refused our

    IVA, what can we do" ? or look on the credit card/stoozing forum and people

    saying "Where can I get a 0% balance transfer credit card without any fees"

    This is all part of the credit crunch. You don't need experts like the Gen to

    explain it to you. Just look around you. Things that were possible last year

    no longer are.

    The sh*t is hitting the fan and the banks want "their" money back.
  • Guy_Montag
    Guy_Montag Posts: 2,291 Forumite
    1,000 Posts Combo Breaker
    wecanhelpu wrote: »
    Generali has tried to explain the way the "market" works. It's all a bit technical

    *snipped*

    The sh*t is hitting the fan and the banks want "their" money back.

    Check out https://www.creditcrunch.co.uk it's a fairly quiet forum dedicated to signs of any impending credit crunch.
    "Mrs. Pench, you've won the car contest, would you like a triumph spitfire or 3000 in cash?" He smiled.
    Mrs. Pench took the money. "What will you do with it all? Not that it's any of my business," he giggled.
    "I think I'll become an alcoholic," said Betty.
  • Generali
    Generali Posts: 36,411 Forumite
    10,000 Posts Combo Breaker
    Guy_Montag wrote: »
    Presumably this means tha Japanese bond prices are high - why would this be?

    Do all govts. issue bonds?

    Mostly because of deflation. Japan has had the 'lost decade' where inflation has mostly been negative.

    When you have deflation, your hundred quid that you paid for your bond is worth more at maturity than when you bought the bond.
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