Are we on the brink of a crash?

joe-90

joe-90

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Everywhere I go and everyone I meet, these days, is full of gloom. No optimism whatsoever. In the past couple of days I've heard that Barretts the homebuilders have lost 95% of their share value. Thomas Fish, a big Nottingham based building company, established in 1880 - has gone bust. A normally busy estate agent local to me has had no sales at all so far this month, they normally sell about 12 per month. A family connected joinery business that has been going for over 60 years is on the verge of closing its doors after making 15 of its staff redundant. A third of the shops in the town where I live are now closed and boarded up. Rumours persist that Bradford and Bingly, and Alliance and Leicester, are heading the same way as Northern Rock. In the past three months unemployment has risen by 40,000.
Why do I get the feeling that this crunch has only just begun and that it will get a heck of a lot worse? My guess is that the recession of 1992 will soon look like the good old days. Am I wrong? Can you see light at the end of the tunnel?
 
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The level of my work hasn't tailed off (yet), but what I am finding is that every buggah is using the credit crunch as an "excuse" to delay paying me. Even private punters, cheeky gits.
 
the house-price asset-inflation boom may have stopped for a while, and no bad thing. You wouldn't approve on runaway price inflation of anything else. If cars went up in price by 20% or 30% as year, every year, for 20 years, people would stop buying cars. Or tulips, or whatever.

When things settle down, as they eventually will, people will still be building and buying houses, and having them mended and improved.

The rate and volume will probably be different from what it was last year, I don't know what it will end up as, nor does anyone.

Do you remember the decline and fall of the car industry, the coal-mining industry, the Shipbuilding industry, the Steel industry, the Office Equipment industry, the computer-building industry? Not to mention traction-engines, horseshoes, arrow-fletching, roof-thatching? It just happens that this time it's the turn of building trades.
 
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What about the banks though John? Aren't they in crisis too? Lending out 100% mortgages that if foreclosed will never sell for the money they lent on them?
 
joe-90 said:
What about the banks though John? Aren't they in crisis too? Lending out 100% mortgages that if foreclosed will never sell for the money they lent on them?
Click to expand...

The banks are not and never will be in crisis, because they know they will be bailed out by the government eg Northern Rock. And we will pay for it and they will still get there indefensible bonuses.
 
yes, it's a tough old life.

but the big banks can rely on you and me bailing them out one way or another

the smaller banks can be allowed to go bust, like Northern Rock, so the shareholders will lose their money and the directors and many staff will lose their jobs, but the depositors will be bailed out by the other banks (and if they can wangle out of it, the taxpayer)
 
But every tax payer is already in debt by £2.5K over the Northern Rock prop-up. They can't prop the lot of them up. If they are in too deep buying debt packages from the USA - then something has to give.
 
Are we in for a crash?..probably yes.

Will we come out of it as before?..not so sure about that.

I see a steady decline due to having reached peak energy and food production, and uniquely a money supply crisis..and we in the UK are probably one of the worst placed - because we neither make nor have anything that others want!

The money crisis is because the inherent value of our 'possessions' are declining, and the cost of commodities which are in short supply has rocketed - a double whammy!

Probably the only western nations that would come out of a prolonged 'worst case' slump are canada and australia...unless of course they are attacked!
 
Australia has no water - but the biggest supply of uranium.
 
Told you 18 months ago.

The home information pack will kill the housing market. :eek:

No housing market = a building slump = a high street crash and no money in the system as every one sits tight on what little they have.

Doom and more Doom and Bliar and Brown nose are to blame 100 %, why else do you think Bliar got out.
 
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