Author Topic: The Credit Crunch  (Read 1561 times)

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Offline Uncle Mort

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The Credit Crunch
« on: December 04, 2008, 11:54:08 AM »
From Robert Peston's article this morning:

Quote
Part of the reason we're in such an economic mess is that, over the past few years, we (that's individuals and businesses, in this case) borrowed considerably more than we saved.

Sorry, but that we doesn't include me, thank you very much. I have a mortgage which I can service very easily because I didn't borrow more than I could afford, I saved, both in in bank and with a pension fund, never taken out a loan and also paid my credit card off monthly.

Even the Company I work for has never had an overdraft.

IT'S NOT MY FUCKING FAULT!

So why is my pension worth less? my savings earning less? my projected salary next year lower?


 cussing: cussing: cussing:

Offline Barman

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Re: The Credit Crunch
« Reply #1 on: December 04, 2008, 11:56:34 AM »
Seconded Uncle...

We don't owe a penny... we don't even live there yet my pension (which Gorgon has now decided I can't take 'till I'm 55) has lost thousands...

Bunch of complete bastards!  cussing:
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Offline Pastis

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Re: The Credit Crunch
« Reply #2 on: December 04, 2008, 11:56:54 AM »
Too bloody right, Unc. Include me in that  evil:
Like the Buddhist said to the hot dog vendor...
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Offline TG

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Re: The Credit Crunch
« Reply #3 on: December 04, 2008, 11:57:15 AM »
Same here (except for the mortgage bit as we rent).

I blame Nick.  Banghead
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Offline Bar Wench

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Re: The Credit Crunch
« Reply #4 on: December 04, 2008, 11:57:55 AM »
Which is the eternal question. I still don't understand why we are bailing out people who have over extended with their mortgages. If Mr Wench and I had known it would happen we would have done the same rather than being prudent.

Offline Barman

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Re: The Credit Crunch
« Reply #5 on: December 04, 2008, 12:00:05 PM »
Precisely Wenchy!

The banks are fucking pissing themselves and have obviously dragged up every bit of bad debt they've ever taken on to include it in 'the crunch'... bastards!

Why give the banks billions? What have they done with it? Fuck all that's what!  cussing:
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Offline Pastis

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Re: The Credit Crunch
« Reply #6 on: December 04, 2008, 12:25:44 PM »
This time last year I was putting in place the first steps to becoming an expat. After a bit of family haggling I conceded that an island in the Dutch Antilles was a bit far for a quick visit so reverted to looking again in France.
Then, after Christmas I began to see the first signs of things looking suspect... work contracts were less secure... pensions had already taken a hammering... investments were looking volatile... and by the summer  evil:

All plans on hold  cussing:
Like the Buddhist said to the hot dog vendor...
"Make me one with everything"

Offline Uncle Mort

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Re: The Credit Crunch
« Reply #7 on: December 04, 2008, 12:34:33 PM »
I'm 55, have had a bit of ill health this year so I've been thinking more and more about retiring from City life, pay off the mortgage and maybe doing a few things just to supplement my income.

It was always going to be a bit tight as you need a very hefty pension pot to do that. Now that pot is smaller and any 'drawdown' plan would, because of the lower interest rates, be less viable.

Somehow I feel like I've been robbed.   

Offline Barman

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Re: The Credit Crunch
« Reply #8 on: December 04, 2008, 12:35:55 PM »
I'm 55, have had a bit of ill health this year so I've been thinking more and more about retiring from City life, pay off the mortgage and maybe doing a few things just to supplement my income.

It was always going to be a bit tight as you need a very hefty pension pot to do that. Now that pot is smaller and any 'drawdown' plan would, because of the lower interest rates, be less viable.

Somehow I feel like I've been robbed.   
Sadly I believe you have been... we've all been robbed...  noooo:
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Offline Grumpmeister

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Re: The Credit Crunch
« Reply #9 on: December 04, 2008, 12:51:46 PM »
Like many I'm in debt, in my case I borrowed money to invest in courses to help advance my career which at the time seemed like a good idea. While money is a lot tighter at the moment I will make sure that any monthly payments I have will go out before I spend money on anything else. If I can't afford it I'll either not buy it or put money aside to get it when I can.
The universe is run by the complex interweaving of three elements. Energy, matter, and enlightened self-interest.

Offline Snoopy

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Re: The Credit Crunch
« Reply #10 on: December 04, 2008, 12:59:18 PM »
Nulabour ~ like old Labour ~ was/is all about the redistribution of wealth.
I pondered long and hard about Nulabour's "Third Way" and I think I have finally worked it out.

They still redistribute wealth but unlike their forefathers they do not try to take from the rich and give to the poor.
Nor do they behave the way they claim the Tories behave by taking from the poor and giving to the rich.

 The "Third Way" is to take from everyone and give it to the rich.

Those banks haven't lost any real money and many in Banking have become rich beyond the dreams of avarice. The minnows who man city trading rooms have made a killing in bonuses but good luck to them, their time at that level is very short but the real rich have simply got richer and richer. The CE Os of various organisations have likewise profited enormously. The top managers in the NHS have pocketed vast sums and the "cronies" in the quangos etc have seen their bank balances grow and grow. MPs have made sure that their pension pots remain well ahead of the game.

Vast sums of our money have been squandered on daft schemes or given to Europe and Africa ~ with no benefit to us at all.

We, the ordinary people, have been well and truly shafted.

I now consider myself lucky to have been "retired" when I was. It has been a frustrating experience (still is at times) but it did mean that I had to trim the cloth all round. Credit cards dumped, debts paid off where possible and "negotiated away" where not (It's a fvck of a drop from £45kpa to £17Kpa). Houses were sold and different property purchased in a cheaper area to get more for the money (You think I like living in Wales??? ~ OK it has some good points but it also has the Welsh)

Now we have had our moans ~ what to do?

No one can expect to have a career anymore. Most sensible younger people are planning (expecting perhaps) to have at least 7 different careers over their working lifetime. For us older ones it is time to think "Multi Income Streams" ~ preferably in cash businesses. Having three or even four jobs is not hard. My niece in Switzerland has done this for years. Four jobs to which you give 12 hours a week is still only a 48 hour week. Lose one job and you have dropped only 25% of your income. Have only one job and lose that, you have lost 100% of your income.
Think about it. My method works (or at least it does for me)
I used to have a handle on life but it broke.

Offline Grumpmeister

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Re: The Credit Crunch
« Reply #11 on: December 04, 2008, 01:08:18 PM »
I have to admit I'm thingking about the multi income stream idea at the moment. My hours are being changed so I am doing a 4 day week (still the same amount of hours thougjh) so I figure I can get a part time job over 2 days that will give 12 hours on top of that as a seperate income and is a complete departure from what I do normally.
The universe is run by the complex interweaving of three elements. Energy, matter, and enlightened self-interest.

Offline Snoopy

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Re: The Credit Crunch
« Reply #12 on: December 04, 2008, 01:10:29 PM »
 cloud9: A convert ~ welcome my child. May your endeavours prosper.
I used to have a handle on life but it broke.

Offline Pastis

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Re: The Credit Crunch
« Reply #13 on: December 04, 2008, 01:11:30 PM »
Now we have had our moans ~ what to do?

No one can expect to have a career anymore. Most sensible younger people are planning (expecting perhaps) to have at least 7 different careers over their working lifetime. For us older ones it is time to think "Multi Income Streams" ~ preferably in cash businesses. Having three or even four jobs is not hard. My niece in Switzerland has done this for years. Four jobs to which you give 12 hours a week is still only a 48 hour week. Lose one job and you have dropped only 25% of your income. Have only one job and lose that, you have lost 100% of your income.
Think about it. My method works (or at least it does for me)

You're not wrong there. For the last few years I've had three; two contract based, one cash based - still bloody challenging but I think the only way to go.


« Last Edit: December 04, 2008, 01:14:22 PM by Pastis »
Like the Buddhist said to the hot dog vendor...
"Make me one with everything"

Offline Snoopy

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Re: The Credit Crunch
« Reply #14 on: December 04, 2008, 01:14:09 PM »
Frankly it is the only way to fight back ~ and cash businesses mean less tax to be paid ~ OK that is illegal but what they are doing to us is nothing short of criminal anyway.


Being "retired" I only charge "expenses"  whistle:
« Last Edit: December 04, 2008, 01:15:45 PM by Snoopy »
I used to have a handle on life but it broke.