Is the Credit Crunch really bad news?

Discussion in 'Current Affairs, News and Analysis' started by jagman, Nov 4, 2008.

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  1. Been pondering this one for a little while.
    Thanks to gross mis-management by the banks and Mr Brown many things are de-valuing nigh on as quick as Zimbabwe Dollars.
    On paper the value of both of our houses is going down, the car I bought a couple of months ago is depreciating a bit quicker than I would like but there is an upside.
    The repayments on both mortgages have dropped, nearly 10% so far and likely to drop more.
    The price of diesel is coming down steadily (I would like it to come down a lot more)
    Cars, you can pick anything up for a fraction of what it was worth six months ago.

    Thois credit crunch may be bad news for the banks and brokers but will the savings made to Mr Average on the street outweigh a couple of years of devalued housing prices?
  2. Not for the IMF. I'm really starting to get tin-foil flashes now.
  3. Cars are mental - 08 Vectra SRi 1.8 VVTI £6997 - £10778 off the list. I'd be gutted if I'd bought one at the old price.
  4. If you're in a secure, guaranteed salary type job, IE: Local Government or HM Forces, then yes you could say you're laughing all the way to the bank(read mattress).
  5. The Mortgage payments have gone down In the house I'm renting - unfortunately my Landlord hasn't passed those Savings onto me so my rent remains the same!
  6. Depends if the banks go under or not.

    Imagine your bank going under with your months salary in it. Imagine your company not paying you and your workmates for the same reason. Imagine if what happened in Iceland happened here on the mainland.

    The government hasn't put up that much money that this can't happen.
  7. Yeah, cheaper cars will be fantastic help when you lose your job.

    You can press your nose against the showroom glass on the way to the dole office.
  8. That is sensationalism and it wont happen.
  9. He's a Politician, enough said really!
  10. Why is Barclays selling 31% of its shares to the arabs then, and not even preferential shares!
  11. The 'credit crunch' is not the problem. The problem was a debt bubble based on banks lending money they had not got to people unlikely, or doubtful to pay it back.

    In reality the 'credit crunch' is the solution. Just going to taste like a shit sandwich whilst we have to eat it.
  12. Er.. The fact that someone is willing to pay for the shares is evidence that the banks have maintained at least some value is it not? The Saudis are not envisaging their investment going to the wall; I don't doubt that there is going to be a period of recession financial institutions are going to take a kicking on their share price.

    The problem with a lot of this is that the harbingers of doom are issuing self-fulfilling prophecies. If enough people sh1te themselves due to sensationalism and withdraw all money from banks then of course the system will collapse. But they won’t, and it won’t and the government would to literally almost anything to stop it happening. If it were that bad then, amongst many other measures) the Army would be universally withdrawn in order to free up every penny to prop up the system.
  13. I have just opened a statement from a certain Scottish Bank who may or may not be having a wee drama right now.

    I appear to have been charged for the following

    Issuing Cheques - All cleared against funds - Charged.
    Automated BACS payments in from Army. - Charged
    Manual credits - Charged
    Cheques paid in -Charged
    Cash out from Branches over the counter - Charged.

    This is the first time I have ever received a statement like this.

    I have just tried to call my Business manager to give him a petite drama , to be told he's 'Taking two days off'

    What a coincidence when the statements have just gone out.

    It appears the RB* have reverted to the practice of nickel and dimeing their clients to death.
  14. The Saudis are holding a revolver to Barclays head. They are getting so much more for their investment and yes, in the long term they will make a lot of money - but because they have brought about a rescue. I believe they may have seized control of a blue chip bank for a fraction of its cost.
  15. So if it has been rescued it will not collapse - so we can stop saying that monthly pay packets are in danger because they are not.