What is the UK government up to

[Hoggums]

Is it me or do you think that the latest measure by the UK government is completely pointless.

I fail to see what guaranteeing loans to the car industry will achieve. It will just encourage reckless lending again. The problem is that people do not want more debt so they are not spending on credit any more. I have a friend who works in the mortgage dept of a well known bank. He tells me that there is plenty of money to lend. The problem is that nobody wants it - mostly because they need to save up a deposit to get it. If everyone had deposits the housing market would explode again - the money is there.

What the government needs to do is put money in everybody's pocket by reducing our overheads - not by letting us borrow more.

I can't help but think this borrowing our way out of trouble policy is short sighted and will eventually lead to UK bankruptcy. Brown is securing his place in history, just not the way he wishes.

 

[0007]

It's not a popular view and one rejected by our glorious leaders - but it's not going to be possible to come out of this recession without a lot of pain.

Borrowing more is no answer - it's like drinking more to relieve a hangover.

 

[fibonelli]

They haven't seen this graph. It also applies to the UK

Or, they have and but believe the tooth fairy, the bogeyman and father christmas will all turn up and save their asses!

 

[counter_violent]

For the best mortgage rates currently...criteria is 60% LTV....and approx 1.95% over base...variable...no fee...thats with a good solid bank like HSBC.
Compared to variable 1% over base previously.

Only way banks can make money is to increase % over base as interest rates will not recover for a very long time imho.

Solid banks will only lend to solid people...with a solid track record...end of story.

This is why some people are more equal than others. Anyone who thinks this is not true....will find out the hard way.

The cycles and spirals that we are currently in will continue...no matter how much money Gordon throws at the problem.....The whole govt policy at the moment is focussed on throwing money into various black holes...the reasoning seems to be...if we don't do anything , then the outcome could be catastophic......

Unemployment is the key here...as it accelerates...then it keeps all these cycles firmly in place...lower house prices...less securities in bank assets....more bailouts...less lending....devaluation of currency....everyone shuts up shop...fire sales

well "HELLO"....the horse has bolted from the stable.
The ship is sinking and there are no lifeboats.
It's every man for himself.

All of this assumes that the people accept what is going on...and are compliant with the banks taking repossession of property and that this growing number of unemployed and dis-possessed stay law abiding.

I wonder what will happen when everyone says....enough is enough...eh...what then ? Revolution !

 

[normbeef]

For the best mortgage rates currently...criteria is 60% LTV....and approx 1.95% over base...variable...no fee...thats with a good solid bank like HSBC.
Compared to variable 1% over base previously.

Only way banks can make money is to increase % over base as interest rates will not recover for a very long time imho.

Solid banks will only lend to solid people...with a solid track record...end of story.

This is why some people are more equal than others. Anyone who thinks this is not true....will find out the hard way.

The cycles and spirals that we are currently in will continue...no matter how much money Gordon throws at the problem.....The whole govt policy at the moment is focussed on throwing money into various black holes...the reasoning seems to be...if we don't do anything , then the outcome could be catastophic......

Unemployment is the key here...as it accelerates...then it keeps all these cycles firmly in place...lower house prices...less securities in bank assets....more bailouts...less lending....devaluation of currency....everyone shuts up shop...fire sales

well "HELLO"....the horse has bolted from the stable.
The ship is sinking and there are no lifeboats.
It's every man for himself.

All of this assumes that the people accept what is going on...and are compliant with the banks taking repossession of property and that this growing number of unemployed and dis-possessed stay law abiding.

I wonder what will happen when everyone says....enough is enough...eh...what then ? Revolution !

Couldnt agree more with this... spot on... the only thing I think that is missing is
the Army of savers that have been fleeced by mr Brown and are now facing serious shortfalls in their income (mainly older people)

I think the Politicians are becomming addicted to "bail outs" as it appears to give them an ego boost over their private sector peers...

Its a very dangerous game...

 

[TomTom]

To be honest we have been heading this way for a number of years. The catalyst for panick was the down turn in USA catalyst debt.
Lets start with basics.
We can not trust any bank or company that there earnings are true.
Out of all the car manufactures its only 4 of them who actually a profit, this has been knowledge for years, why the sudden surprise that they need a bail out ?
Yes we are in trouble, big big trouble on a scale never seen before.
What banks have loosed on the subprime is peanuts to what they will loose when there maritages become challanged under new legislation.
it has been estimated that 50% of loan agreements/mortages are un enforceable
Im glad I have suffered 3-4 years with no - little money in the early days in this business, as now through trading income is not a problem and never will be.
But this is not about me, my friend is a fireman and the fire service is making cut backs, closing down stations, some police stations have closed, every morning we here of schools not opening because of some silly reason.
Red tape, drastick cut backs in spending ect.
Tens of thousands have loosed there jobs, some were bringing home just £1500 per month. These people now get council tax and maritage interest paid on there properties, free nhs care, dentist, proscriptions, there kids get free school meals a family with a 100k maritage all that will equate to roughly £500 per month. That family if two children was living there under 16 would receive £225 per week or £950 per month in DHSS benefits, add this to free maritage, council tax and not paying for transport to and from work they are no worse of through not working.
Ok these are the minority.
Will these be looking for work ? after all they have ben through ? you decide.
I have children and are concerned what jobs will be for them when they finish education.
My daughter has considered going in to teaching like her cousin, this weekend I mentioned she will be earning £20k when she qualifies at the age of 21yrs. Then she lashed out and asked me to work some simple maths, the 3 yrs cost of studying/Uno will have amounted to £20k+ of student debt ( she had a part time job too ) so next to no earnings until she is 21. The she has to repay the student loan, this will take until she is 25 yrs if she repays £100 pi. |Given that 50% of new teachers leave the profession in the first 5 yrs things are not looking good there either.
So what am I going on about / what has this got to do with the goverment ?
This is lawless britain, where hoodies and thieves rule the streets, when they are not ripping us of its out banks then its the utility companies and if we have got any cash left the tax man will then finally take your last penny.
The stock market has had its day for long term investments, short term trading is here to stay and this will become more profitable than longer term investment.
500K+ have retired from work over the past 18 months, most of those have persevered and invested in pensions, unfortunately this has not turned out fruitfully. The money they thought they would have has has dwindled, resulting in further cut backs in spending.
We currently see the majority of old age pensioners living well, this is due to the final salary pension scheme they were in,what we are seeing now with that generation will never be seen again in our life time due to the current state of the economy and global economy.
These are still good business out there, trading is one if your lucky enough to make it, Opticians is another good business too, all of the children ahead 5-14 now will require an optation in the next 10 years as vidi gaming has taken of so has computer access and these will access have a negative affect on our eyes.
Well if you workd at a supermerket your job would be safe ehh ? whilest out jogging I bumped into a niebour as I asked why she not working today, she works at ASDA , she informed me that due to lack of custermers they are sending people home, this is shocking news ! Its ever worse that I thought.
May I apologize for any spelling mistakes, ever though i have problems with my spelling I feel other skills and wisdom make up for this.
Please dont remove me from this site due to spelling error's.

Here is some thing on trading ,
We have come through January with no gains, this is 28th of January look out for gains i the Index's in the last days of this month, add to these gains as the start of Febuary should continue to see upside movements.
Max 5% upside......

Good luck with trading everyone, keep thoughs limmit orders open with the stops just behind them.

TOMTOM

 

[gedward3]

Well if you workd at a supermerket your job would be safe ehh ? whilest out jogging I bumped into a niebour as I asked why she not working today, she works at ASDA , she informed me that due to lack of custermers they are sending people home, this is shocking news ! Its ever worse that I thought.

------------------------------------------------------------------------------------------------------------------------------------

I walked into a Morrisons the other week for the first time in about 12 months and was surprised by how quiet it was.

This is gonna be a tough one

 

[dick_dastardly]

Steel workers out of work, Jaguar workers on a 3 days week, Rover workers on the dole and Asda creates 7000 jobs

Perhaps Napoleon was right after all.


dd

 

[counter_violent]

So we have a whole world short on confidence...without confidence then nothing can improve....the herd will only follow the lead.

So how about our glorious govt starts to buy up equities in all the FTSE 350 stocks...thus putting our money where their mouth is...benefits are immediate and longer term...seems like a win win to me.

Thoughts ?

 

[Martinghoul]

So we have a whole world short on confidence...without confidence then nothing can improve....the herd will only follow the lead.

So how about our glorious govt starts to buy up equities in all the FTSE 350 stocks...thus putting our money where their mouth is...benefits are immediate and longer term...seems like a win win to me.

Thoughts ?

The BoE (the govt) is happy to embrace quantitative easing, but they really balk at the idea of 'qualitative easing', i.e. buying risky assets, such as equities. To be honest, given that the UK Plc as a whole is, basically, monstrously long the FTSE through its pension system, I think they're right not to add to the position.

 

[blancspa]

So we have a whole world short on confidence...without confidence then nothing can improve....the herd will only follow the lead.

Thoughts ?

I think you make very good point here. "the herd will follow the lead"
Appears to me that our leaders are very incompetent people and who knows what kind of evol they are about to awaken this time. The new social, technological, cultural paradigm has to be designed with utmost care otherwise a re- adjustment process will be :whistling

and especially societies, have to be more carefull which ideaologist, economist, theorists the goverment will bring in now. I wonder if we still do have an independent media?

 

[superspurs]

For the best mortgage rates currently...criteria is 60% LTV....and approx 1.95% over base...variable...no fee...thats with a good solid bank like HSBC.
Compared to variable 1% over base previously.

Only way banks can make money is to increase % over base as interest rates will not recover for a very long time imho.

Solid banks will only lend to solid people...with a solid track record...end of story.

This is why some people are more equal than others. Anyone who thinks this is not true....will find out the hard way.

The cycles and spirals that we are currently in will continue...no matter how much money Gordon throws at the problem.....The whole govt policy at the moment is focussed on throwing money into various black holes...the reasoning seems to be...if we don't do anything , then the outcome could be catastophic......

Unemployment is the key here...as it accelerates...then it keeps all these cycles firmly in place...lower house prices...less securities in bank assets....more bailouts...less lending....devaluation of currency....everyone shuts up shop...fire sales

well "HELLO"....the horse has bolted from the stable.
The ship is sinking and there are no lifeboats.
It's every man for himself.

All of this assumes that the people accept what is going on...and are compliant with the banks taking repossession of property and that this growing number of unemployed and dis-possessed stay law abiding.

I wonder what will happen when everyone says....enough is enough...eh...what then ? Revolution !

maybe the revolution has begun BBC NEWS | Scotland | Sir Fred Goodwin's home attacked