The Credit Crunch

Re: The Credit Crunch

Doubble M — Sat, 01 Aug 2009 14:11:18 GMT

civvy863:
the crunch is, when will business stop increasing prices using this excuse. take a look at fuels. how can they increase in price when there is no war in iraq??????? there is no difficulty or uncertanty because of conflicts, so what is driving the prices up. maybe i'm foolish in thinking its just greed using the credit crunch as an excuse.

I would guess that the prices of fuel would have gone up because less people are using their car to save money so there is less demand for it, this means they are unable to buy in larger quantities and get better deals from the distributor for buying in bulk.

When there is a recession the best thing for everyone to do is spend money because it is a lack of money that causes a recesion so not spending would make it worse. I have found the in general the people who moan about the government is buying shares in banks and how the recession is so bad are the ones who are causing it by stopping spending and taking their money out of their bank account.

If there weren't news reports at the start about someone finding out about Northern Rock was borrowing money from the bank of England, as all banks can do annonymusly, then no one would know and any funding gaps would have solved it's self in the end. However instead after many news reports about banks loan companies losing money some members of the public thought it had something to do with their bank accounts and shares so withdrew all their money / sold their shares causing the banks share prices to go down.

A few days ago the FTSE 100 reached it's highest point this year and came close to in November 2008 so it is recovering. I noticed when I went shopping earlier this week there were more people shopping than there have been compaired previous times and new shops too

Re: The Credit Crunch

civvy863 — Fri, 31 Jul 2009 23:36:24 GMT

the crunch is, when will business stop increasing prices using this excuse. take a look at fuels. how can they increase in price when there is no war in iraq??????? there is no difficulty or uncertanty because of conflicts, so what is driving the prices up. maybe i'm foolish in thinking its just greed using the credit crunch as an excuse.

Re: The Credit Crunch.Hayden Chittell

haydenchittell — Mon, 20 Jul 2009 11:36:46 GMT

So-So.. it affects more people then others.

Restaurants and other such like business have suffered greatly. The place where i work used to be HEAVING on a saturday night - turning people away every sinle table taken (53 table restaurant). Last saturday - 7 reservations and 3 cancelled. Great.

As well as this, theft has also increased dramatically, so it must be affecting peopl somewhere along the line. Shops ect..

Re: The Credit Crunch

marleycate — Sat, 04 Jul 2009 23:00:47 GMT

Must say definitely agree with you on the point of how the public in general don't like to take the blame for things. I have begun to manage my income better and I know that if I get into debt now, its my own fault! In the past it was so easy to get credit but the bottom line is, we are all responsible for our own borrowing and for the decision to do so. The temptation to spend, spend, spend is always there with adverts thrust in our faces and our need to keep up with the Jones's. I truly belive that having to tighten our belts is a good thing and has totally made me reassess what is important to me in life. As a nation we have become far too materialistic and its actually a breath of fresh air to step away from all that and be grateful for what we have.

Re: The Credit Crunch

Doubble M — Tue, 26 May 2009 19:53:15 GMT

peterralph:
People should start getting into renewable energy and produce their own electricity through wind power or solar, and get rid of the cut throat energy companies!

Renewable energy can barely power anything unless you have thousands of them. They are also a waste of money and very inefficient. It takes arround 1000 wind turbines to make any where near the amount of a neuclear power plant and 3000 wind turbines to make the amount of a coal power plant. If you were to go to an apple orchard and connect all of the apples you would probably get more energy than a wind turbine.

Wind turbines dont just appear my magic for free, a lot of them are at sea so it costs more to build foundations and pay for boats so engineers can expect them and it involves a large amount of lorries, ships and machines to install wind turbines. Where as other power plants can be built on land. No one can run their house only on personal turbines or solar pannels, they just dont make enough energy.

Even if it did work how is not spending going to help the economy? if you don't spend it would get worser

Re: The Credit Crunch

peterralph — Tue, 26 May 2009 19:09:59 GMT

People should start getting into renewable energy and produce their own electricity through wind power or solar, and get rid of the cut throat energy companies!

Re: The Credit Crunch

maison09 — Fri, 24 Apr 2009 01:30:09 GMT

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Re: The Credit Crunch

Doubble M — Wed, 22 Apr 2009 21:24:43 GMT

john2605:

I am certain this is no media myth, please allow me some of your space to give my experience with the credit crunch.

For several years I have worked for a large foreign company, the company has alway's boasted of its success, it always made a healthy profit margin although it has always needed the banks help with finance, this was never a problem as the bank always got a healthy return for its investment, But in November 2008 the bank was no longer able to supply the finance the company needed, basically the bank had no money to lend, even to a profitable business.

The reason why the banks no longer have money is because of reports about how the banks have no money and every one will lose the money in their bank accounts. The credit crunch only happened because people took news reports too seriously.

No one likes to take the blame for things so instead of the public being blamed for things they say it is an indstary's fault. The reason why banks lost money is not only because banks lent to people/companies who would not be able to pay it back and they over spent on buying out other banks. If people hadn't taken their money out of their bank accounts the banks would still have money. People dont like to take the blame for things so the banks are blamed for lending money. It is like when fast food is blamed for making children fat, it is the parents, children dont usually have the money to buy food, their parents take them to Mc Donnalds or KFC, how many 3 year olds do you know who take their parents to a fast food resturaunt and buy a meal for them?

Re: The Credit Crunch

john2605 — Wed, 22 Apr 2009 19:06:33 GMT

I am certain this is no media myth, please allow me some of your space to give my experience with the credit crunch.

For several years I have worked for a large foreign company, the company has alway's boasted of its success, it always made a healthy profit margin although it has always needed the banks help with finance, this was never a problem as the bank always got a healthy return for its investment, But in November 2008 the bank was no longer able to supply the finance the company needed, basically the bank had no money to lend, even to a profitable business.

We at home had a great Christmass with our three young children, although I do not earn a great salary we always get through okay. January came cold as it was. One morning I got a nasty letter from my bank saying that my account was very overdrawn and could I rectify this as soon as possible. I knew December was an expensive month as it would be with three children but I do not usually go overdrawn especially for £700. I looked into this and found that my employer had not paid my salary, I had been going to work everyday and nothing had been said to me warning of this. When I pointed this out to my boss, he said that the wages department must have made a mistake, he then gave me a letter telling me that some staff would be made redundant and I could be one of them, obviously we were all devastated as we were a very profitable part of the company, fortunately for me I retained my employment but some of my friends did not. (They have still not been paid any redundacy money).

Since then, I have been paid late constantly and not the full amount of money due to me, I have been reminded everyday by my boss that I am lucky to have a job in these difficult days. Each day I wonder if it will be my last in a job that I have always loved. I know I have skills that many companies would pay a lot for. I had been offered by a competitor a lot of money they also offered a larger salary, but I am a very loyal person and believe in commitment, I know the grass is never greener on the other side.and decided to stay.

Two weeks ago I asked my boss if there would be any problem getting my salary on time as I was starting to have a few problems with some bills, a reasonable question I thought! He then said that there could be, and that if I did not like it I could Get another job, he has been affected by all this too, as the pressure on him has been enormous, I had always considered him a friend until all of this happened, and always worked hard for him. But now I question my values of Loyalty and commitment and hard work for long hours, was it all worth it?

My wife and I are in a bit of bother now financially, like many others out there. I know I have done the best I could for my family. As the man of the house I have seen it as my responsibility to provide for them, I now feel scared and frightened as does my wife, we are about to miss some payments on our bills, I feel I have failed them because I should have gone to another employer when I had the chance, it is not that I do not earn enough to pay these bills, I just have an employer reluctant or unable to pay me the salary that I earn. Even if I stay with my employer and work hard and earn the company lots of money, it does not matter, as the parent company empty the bank account on a regular basis. I know that I could lose everything now and it hurts me so much as I have not been able to do anything about it. My bank will not increase my overdraft, and I cannot blame them, money is their business and I am not a great investment for them at the moment.

Bearing my soul like this is a very humiliating experience for a very proud man like me, I do not know what to do, I am now searching for another job and I will find something, I am sure that things will get better eventually although it will probably get worse first. In the meantime I have three lovely little children that love me without conditions, that is what drives me at the moment. I know there must be many people out there in the same situation as us, powerless over the actions of others, please hang on in there you are not alone.

Is the Credit Crunch real? You ***bet it is, and it has not even hit hard yet.

Re: The Credit Crunch

jj71 — Fri, 10 Apr 2009 07:44:58 GMT

I quite agree with you Rosiet the trouble in this country people have been encouraged to go into debt by people who have misused the power most of them have gained falsely. Some companies are carrying on normally but others are going out of business and causing unemployment. Do we need to bring into this country more workers.

Re: The Credit Crunch

Doubble M — Mon, 23 Mar 2009 20:44:06 GMT

solutions4finance:

I work as a business asset finance broker, and I have to admit that the crunch is certainly crunching harder than ever.

I also don't think that media "scare-mongering" does us any good what-so-ever. If people are told that there is no money, general suggestability and paranoia will, and does, have an adverse effect on public spending. Yes, the country is experiencing a financial shift, but surely the media have a social and economic responsibility to report the facts without the need for injecting the sensationalism that leads to mass hysteria, which in this instance results in reduced public spending?

I agree that the scare mongering doesn't do any good, if you look at the FTSE price it goes up everyday that the credit crunch is not the main story in the news for example last week when the main headlines were about the Man in Austria who raped his daughter and kept her in the basement the FTSE grew.

The news reports seem to be bending the truth a lot too. Take for example with ITVplc, they kept going on about how ITV was loosing money when really it is because they spent tens of millions of pounds buying companies, they still have a turnover of over £2bn, there was a difference of arround £50million but ITVplc spent more than that on wholly buying and buying stakes in various companies last year.

In the past few weeks the FTSE 100 has gone up, it is arround the same price as it was in 1998. The FTSE 100 was lower in march 2003 than it has been anytime in the past 10 years

Of course if news reports keep saying how banks are losing money people are going to withdraw all their money and the government will have to buy more shares in the banks. Also news reports seem to not mention the banks will buy the shares back from the government. The government may be buying billions of pounds of shares but they will be worth more and sold for a higher price when the banks start making more money

Re: The Credit Crunch

patricia 06 — Wed, 28 Jan 2009 14:01:11 GMT

Gordon Brown and his Cabinet should get out in the real world. What is the point in providing more money for lending and the car industry when so many people are being made redundant. The industry is in such a mess because people donot have the money to spend with redundancy and ever increasing prices on food,fuel,transport , Gas,Electric,Water and rates not everyones money is going up as Gordon Brown and his Cabinet plus Advisers seem to think .I know quite a number of people my own family members included all on fixed income who are having to cut down on food and heating because the direct debits for gas, water,electric,rates and mortgage plus other essentionals are more than their wages going into the bank because of the never ending price increases never mind any left over for food,clothes and essential repairs to the home. The Banks have been putting interest rates down for savers for the past year yet at the same time either not passing on interest cuts for mortgages or increasing interest rates,yet if the telegraph is to be believed The RBS just scrapped a debt of over 2million pounds for one of its affluent customers he was not even English or Scottish though I belief if I remember correctly lived in this Counrty it seems their answer is forget what the rich owe but go after the poor who only owe a few hundred or thousand with this government the rich get richer including members of the goverment but the poor get poorer the companys putting up their prices whilst making large profits and the goverment is doing nothing to stop it. The first bank to be nationalised has already paid back a good amount of the money borrowed plus given all staff a bonus yet are the biggest lender to repossess homes sometimes when only a few payments have been missed Gordon Brown and his Government really donot know or perhaps its they donot care what is happening in the real world as long as he seems to be doing something and making himself and labour look good. It seems to me that almost everytime this country has got into a finacial mess and a large amount of debt that will take the taxpayers years to pay off a Labour Government has been in power. The before 6.0am BBC World News seem to be the only ones who are reporting the real finacial situation on what is going off in the world and this country. Patricia East Midlands

Re: The Credit Crunch

martinitv — Fri, 23 Jan 2009 12:15:38 GMT

No I am working and have a tracker mortgage so the last year has been fantastic for me. Lower mortgage and cheaper food/petrol. It's great, only wish I had opened a euro or dollar account last year. As for the bigger picture it is really grim news for the Country and although so far I am uneffected (even benefiting from the downturn) this may not last, and for anyone who bought their property in 2007 well I am very sorry for them. I knew nothing about how the credit crunch happened, but I came across a really useful site which explains it very clearly. It's not written by an economist which is good! Look at www.johnabbey.co.uk Not sure how accurate it all is but I think its pretty close from other artcles I have read.

Re: The Credit Crunch

newnews — Tue, 04 Nov 2008 14:33:35 GMT

I'm not being affected at the moment, but maybe over the next months we will see the true damage! I am quite confused about the whole thing at the moment, it's not that easy to know exactly what's going on!! I've done a bit of research online and found some interesting sites which have helped to make things more clear. There are lots of articles on the current situation such as this one from The Guardian and this one from The Times Online.

There are also lots of sites with free advice such as this one on credit and debit cards, mortgages and loans and this site with helpful info on mortgage and financial advice.

Hope this information helps!

Re: The Credit Crunch

charityplayer — Thu, 09 Oct 2008 01:50:15 GMT

YOU WILL EMERGE LEANER BUT FITTER

FITTER AND POORER

LESS WELL OFF

ON YOUR UPPERS

A NATION LED BY HOPE

As Your Pleader Said In Manchester