"Credit Crunch" really begins...

Discussion in 'Finance, Property, Law' started by Majorpain, Mar 25, 2009.

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    The government is struggling to raise enough money through the markets to "Spend wisely"

    Note this bit though:

    £75 billion is going onto government debt?


    Gordon still doesnt get it! All aboard the ship to bankrupcy!
  2. Its not a bloody "credit crunch" its a recession / depression ! Whne will Liabour come and admit it !

  3. No, this is definately a credit crunch!

    People are starting to refuse to loan the government money, and its only going to get worse as UK debt increases and the governments deficit worsens.

    Its the equivilant of going to the bank to get a loan to keep your business going, and them refusing!
  4. Which is becoming very common at the moment, shit will hit the fan in about six months I reckon, most people will be stunned for a couple of weeks then anarchy will rear its ugly head. Its all downhill from here folks....at least for a decade.
  5. Gordon says spend.

    Bank of England says save.

    some people need to have a chat and sort themselves out.
  6. As Britain currently has a lower credit rating than Ronald McDonald, it is perhaps unsurprising that people are unwilling to lend us money. Even with the half arrsed 'quantitative easing' programme that involves printing cash to buy back bonds for more than the selling price, nobody wants our debt.

    Despite the lack of coverage on the BBC (there's a surprise) I suspect this story might be the spark that lights an inferno under the Saviour of the World (© Crown Copyright 2009). It could be right up there with the Telegraph's 20 March 1982 story on page 14 about a minor incident involving Argentinian scrap merchants landing on South Georgia.

    As tax receipts collapse, Gordon is dependent on borrowing increasingly vast sums to maintain the 'grotesquely engorged public sector' so eloquently described yesterday by Dan Hannan. In common parlance, he's been living off his credit cards and Visa have just cancelled them.

    Before today's events, a large number of colleges have had their funding cut unexpectedly, leaving them with half demolished old buildings and half built new ones that are supposed to be ready for the next generation of media studies students in the autumn. The minister responsible, Sion Simon, knew nothing about this until it happened. Looks like the cheques have started bouncing.

    With the Governor of the Bank of England having off-the-record meetings with the Queen, the chancellor threatening to resign if he's made to play the organ grinder's demented monkey any longer and Gordon pi$$ing money into the fiscal urinal like a diabetic alcoholic at the Oktoberfest, things aint looking good.

    Perhaps the increasingly frequent predictions of national bankruptcy and a 'Summer of Rage' aren't all that far fetched. What would you do if your salary stopped arriving in the bank each month?
  7. Is that a realistic possibility? Would they have enough money to pay and maintain the forces on ops?
  8. Toast my toes at the large bonfire they call the civic centre down the road.
    For starters anyway
    In truth, I have been in that position before, where the pay doesn't arrive in the bank. Its not somewhere I want to go again in a hurry
  9. Yes, they could easily keep Afghan going.

    Its the equivilant of having £100 a month from your salary, but your spending £110.

    Labour will have to cut something if they cant get someone to give them money, and its a choice between the IMF and raising interest rates to make bonds more attractive in that respect.
  10. Good points but I don't agree.

    Since taking on the toxic debts of the banks, government debt and liabilities stand at around 2,000 billion pounds. That's excluding PFI debt and public sector pension liabilities. To use your analogy, that's like having a salary of £100 per month and spending £400.

    It's not the interest on offer that's the problem. If lenders don't think they'll get their money, they wont lend. That's what happened today when HMG offered £1.7 bn of gilts. They need to flog 100 times that much to stay afloat for the next year.

    The IMF simply doesn't have the kind of cash Gordon needs to keep him afloat so a 1970s style cry for help won't work either, especially as, this time, many other bankrupt countries are ahead of us in the queue. The proposed 45% tax rate will only raise about one fiftieth of the amount required.

    So what's a chap to do? Stop the welfare bandwagon and he'll have Sven and millions of his mates on the streets throwing empty bottles of Buckfast. (Where is Sven btw? Is he sectioned again?). Stop paying for the NHS or for education and the staff will walk out.

    Stop paying the armed forces and nothing will happen. In fact, unless things have changed since my day, even a communal expression of anger would constitute an act of mutiny. The government has the armed forces over a barrel, irrespective of whether or not they choose to pay your wages.

    Add to that the fact that half the Labour party view you lot as fascist baby eaters who deserve to be comprehensively sh@t on before Labour is booted out next year. As that well known philosopher, Elvis Presley once said: 'It'll be cold so cold ... This Christmas' (especially if the electricity in your married quarters has been cut off).
  11. Yes, this country is now out of control, and its every man for himself im affraid, -------------- Thanks to all the voters who put LABOUR into power. Now enjoy your CREDIT CRUNCH. :D :D :D
  12. Whilst I am more than happy to talk down the Government when it needs it, I am not certain that the bond auction was as large a failure as it has been made out to be.

    I understood from the lunchtime Politics Show that £1.75bn was offered and only £1.672bn (don't ask why it was so precise....) was purchased. Now, in auction terms, 5% of the lots were unsold, which is peanuts, especially when the likes of Sothebys are content if they sell 60% of the lots on offer.

    All that happened was that the Debt Mgmt Office (part of the BoE) got the pricing wrong! If the DMO offered a gilt yielding 5%, we would all be standing in line to buy. But they are offering around 4% and that isn't enough, IMHO.

    I agree with the general opinion that we are all going to hell in a handcart; try as I might, I cannot see how this will all pan out!

  13. Well thank faaack for our shipbuilding, engineering, steel and coal industries! At least we have a strong world respected manufacturing base...to tide us through....these...erm
  14. So were fecked then??

    Any ideas as to the way forward or damage limitation measures that joe public can take?? Nowt coming from the head shed so..... thoughts?