money meltdown !!!!

[graysblue]

what can anyone say?

the so called leaders of the world have allowed people to spend spend spend without the brakes being applied,we all will have to foot the bill one way or another.

george bush wanted the sub prime market with loony labour only too happy to join in with the madness,trillions was poured into this market which any village idiot could see could never ever be repaid,yet incredibly the worlds leaders ploughed more and more cash into this flawed system.

in this country personal debt had reached in excess of 1 trillion quid or around 16k for every man,woman and child .

the above was doomed to fail simply because of the numbers involved.

loony labour gleefully allowed the housing market to balloon to mental levels because the stamp duty was worth 7 billion smackers to the treasury,the buy to let schemes could never ever be sustained yet bankers were still falling over themselves to borrow 105% or even 110% in mortgage advances .

today money has been poured into the markets,firms are having 3 or 4 day weeks,firms are going bust left right and centre,the dole line becomes larger every day,all in all bush and brown have resided and allowed global meltdown.

 

[Firestorm]

No one held a gun to peoples head and ordered them to borrow money.
House prices shot up because people wanted to make as much money as they could others were willing to pay.
The slump is down to greedy capitalist corporations taking risks with other peoples money in order to feather their nests.
The Tories have sat on their hands and accepted donations from the greedy.
Brown has taken the bull by the horns and attempted to reverse the tide


See... its easy to put a any political slant which fits ones beliefs

 

[graysblue]

No one held a gun to peoples head and ordered them to borrow money.
House prices shot up because people wanted to make as much money as they could others were willing to pay.
The slump is down to greedy capitalist corporations taking risks with other peoples money in order to feather their nests.
The Tories have sat on their hands and accepted donations from the greedy.
Brown has taken the bull by the horns and attempted to reverse the tide


See... its easy to put a any political slant which fits ones beliefs

morning,

i have voted labour for the past 30 years they will never get my vote ever again this includes the tories as well.

this crisis is SOLELY due to the sub prime market.

every goverment can easily control the ballooning housing markets simply by raising interest rates,yet loony labour happily stood by as properties reached crazy levels.

the housing market has always been based on people able to afford to buy,normally 3 times joint income thus allowing any single person or couple to repay each month.

yet the reality was prices were allowed to spirral to levels which required 4,5,6 times joint income,any fool could see this could never be sustained,and as we all know when any property is repossedsd it signals the end is very close,sadly for political reasons loony labour ignored every single signal.

i am far from a clever person,yet i was saying 3 years ago it would all end in tears.

 

[steveo]

The Tories have sat on their hands and accepted donations from the greedy.
Brown has taken the bull by the horns and attempted to reverse the tide

Were you the person who emailed five live the other day and blamed the whole thing on Margaret Thatcher? Most ridiculous thing ive ever heard.

The Tories, not being in power, cant really do much at the moment, but hopefully that should all change come the next election.

 

[MrB]

i have voted labour for the past 30 years they will never get my vote ever again this includes the tories as well.

The Tories won't vote for Labour either? Shocking!

 

[seany t]

This guy isn't too optimistic either:
http://market-ticker.denninger.net/archives/602-Time-Is-Up-Congress-And-America.html

 

[RobM]

Greed for greed's sake. You know - the happiest people in the world are the poorest. They have no money worrries - they have no money!

 

[graysblue]

This guy isn't too optimistic either:
http://market-ticker.denninger.net/archives/602-Time-Is-Up-Congress-And-America.html

frightening theory and possibly very accurate.

 

[Firestorm]

Were you the person who emailed five live the other day and blamed the whole thing on Margaret Thatcher? Most ridiculous thing ive ever heard.

The Tories, not being in power, cant really do much at the moment, but hopefully that should all change come the next election.

No, but I could possible see (If I squinted through my red tinted spectacles long enough) where they might be coming from (In the Thatch years individual epeculation in property , shares etc was actively encouraged, this led to a far more money orientated, some may say greed, culture)

My post was meant more as an indication that there are ways of blaming any part of the political spectrum, if you are that way inclined.

 

[Firestorm]

morning,

i have voted labour for the past 30 years they will never get my vote ever again this includes the tories as well.

this crisis is SOLELY due to the sub prime market.

every goverment can easily control the ballooning housing markets simply by raising interest rates,yet loony labour happily stood by as properties reached crazy levels.

the housing market has always been based on people able to afford to buy,normally 3 times joint income thus allowing any single person or couple to repay each month.

yet the reality was prices were allowed to spirral to levels which required 4,5,6 times joint income,any fool could see this could never be sustained,and as we all know when any property is repossedsd it signals the end is very close,sadly for political reasons loony labour ignored every single signal.

i am far from a clever person,yet i was saying 3 years ago it would all end in tears.

I agree with the sub prime issue, is that a government thing ? Surely the regulatory bodies could cap mortgages to say 3 times salary.
However the greater risk associated with sub prime lending meant that the interest rate was higher, thus the returns on the gamble were greater so greed kicked in and more lenders took the "greater returns" option.
Also the Sub prime issue generally brought down Financial institutions in the states which led to the crisis over here, quite what anyone over hear could have done to regulate the yanks is beyond me

 

[graysblue]

the tories sold off everything,council properties,gas,leccy,phone,water ect ect thus installing greed into the average joe.

maggies poll tax was a national scandal truly appalling to expect lord crapalot in his vast mansion with millions stashed away to PAY LESS than hard up families was criminal to say the least.

loony labour however has allowed this tiny island to become vastly over populated which this single policy will be worse than anything the tories ever dreamed up.

 

[steveo]

maggies poll tax was a national scandal truly appalling to expect lord crapalot in his vast mansion with millions stashed away to PAY LESS than hard up families was criminal to say the least.

Built it wasnt designed to do that. Take the current council tax system. A family with two grown up kids, all earning and all living in the same house, pay the same as the family next door who's kids have left leaving just the two of them.

Under Maggies poll tax, each household would have paid in proportion to how many people lived there. Surely that was fairer.

 

[graysblue]

Built it wasnt designed to do that. Take the current council tax system. A family with two grown up kids, all earning and all living in the same house, pay the same as the family next door who's kids have left leaving just the two of them.

Under Maggies poll tax, each household would have paid in proportion to how many people lived there. Surely that was fairer.

the majority of people during this period did not think it was fair,which ultimately signalled the end for maggie.

lets assume mr and mrs snooty owns 10 bedroomed gaff and have 50 million stashed away,this couple could easily afford 20k per year in council tax simply because the interest they earn on their 50 million would be most persons dream income ie 5% equals a cool 2.5 million per year.

we now have mr and mrs average earning 50 k between then with their 2 kids earning 12k each,total income 74k how could it be ever fair they should pay more than mr and mrs snooty?

 

[steveo]

we now have mr and mrs average earning 50 k between then with their 2 kids earning 12k each,total income 74k how could it be ever fair they should pay more than mr and mrs snooty?

Because 4 people adults live there. They create twice as much rubbish, they use local services more.

You are also forgetting that Mr and Mrs Snooty have probably paid a fortune in tax, when they earned their money, and they are paying loads of tax on the interest they are earning.

As well as paying more tax in actual money terms, they have also paid tax at a higher rate than Mr and Mrs Average.

Why dont you make your comparison with Mr and Mrs Average, who both work and earn £50K between them, and Mr and Mrs Slightly Older who earn £50K between them and have two kids in their 20’s who earn £20K each.

Now tell me why both households should pay the same.

 

[canveyshrimper]

Were you the person who emailed five live the other day and blamed the whole thing on Margaret Thatcher? Most ridiculous thing ive ever heard.

The Tories, not being in power, cant really do much at the moment, but hopefully that should all change come the next election.

I've an idea that Firestorm was being ironic.

 

[canveyshrimper]

the tories sold off everything,council properties,gas,leccy,phone,water ect ect thus installing greed into the average joe.

maggies poll tax was a national scandal truly appalling to expect lord crapalot in his vast mansion with millions stashed away to PAY LESS than hard up families was criminal to say the least.

loony labour however has allowed this tiny island to become vastly over populated which this single policy will be worse than anything the tories ever dreamed up.

:offtopic:
The Community Charge (Poll Tax) IMO was a good idea, however the way it was structured it was completely unfair. The idea that every working adult should contribute to the coffers of the local community seems fine by me. But it had to be based on earnings and the ability to pay.

 

[Benji91]

this crisis is SOLELY due to the sub prime market.

Thats not entirely true. The sub prime market was the catalyst, and its when people started to bundle mortgages together in Asset Backed Securities or CDO's and these were being sold and bought without much care and attention as to what was in them - mixtures of different types of mortgages.

Years ago i was told the best investment anyone can make is in bricks and mortar... i guess this was the case when people bought up these mortgages knowing it was a good investment.

But that is the kicker, the financial firms who own these mortgages HAVE to report them at their current value so they aren;t an investment. So if the market drops so does the value of the assets (ABS, CDO's) they hold, hence all these huge writedowns. If the banks were allowed to report the instruments on a hold to maturity basis we wouldnt be here now.

Then you have the shortsellers in the market driving prices down which gets picked up by the press and amplified and blown out of proportion. Somebeody somewhere is making a lot of money right now.

Since then distrust has flown through the market, not helped by the US Treasury letting Lehman fail (and thats not biased as an ex-employee) which means that now everyone wonders who is next and overnight lending has virtually dried up and making the situation much worse.

It will correct itself soon enough....

 

[graysblue]

Because 4 people adults live there. They create twice as much rubbish, they use local services more.

You are also forgetting that Mr and Mrs Snooty have probably paid a fortune in tax, when they earned their money, and they are paying loads of tax on the interest they are earning.

As well as paying more tax in actual money terms, they have also paid tax at a higher rate than Mr and Mrs Average.

Why dont you make your comparison with Mr and Mrs Average, who both work and earn £50K between them, and Mr and Mrs Slightly Older who earn £50K between them and have two kids in their 20’s who earn £20K each.

Now tell me why both households should pay the same.

surely the fairest way is to charge households on actual annual income,thus mr and mrs slightly older would indeed pay slightmore more than mr and mrs average.

 

[canveyshrimper]

surely the fairest way is to charge households on actual annual income,thus mr and mrs slightly older would indeed pay slightmore more than mr and mrs average.

More means testing by local councils, no thanks.

 

[BrettieAngell]

It will correct itself soon enough....

Soon enough? Despite the hundreds of billions of pounds poured into the banking system the stock markets are still plummeting, I'm no expert but seems to me this is gonna take a long time before it sorts itself out.