More economic gloom

[joe-90]

Oil has hit a new record high. So the solution? To ask the Saudis to increase production! Err hello? That will only make the inevitable dry-well crash sooner and harsher. Shouldn't we be using less?

House prices are predicted to drop by 50% over the next 2 years and won't regain their current level until 2017. Will it leave you with negative equity?

 

[Bilioustrumpstaine]

Woe, woe and thrice woe.

Stop buying the Daily Mail.

I read in a paper today that it will take four years for property to regain it's 2007 high.

I also read that the Saudis were making more oil available to decrease the price in the international market.

 

[oompah]

Its not only in the daily mail have a look on any financial reporting.The CBI have lowered their output forecast to the levels last see in 1992.Oil just under $140 a barrel,as G Brown said we are safe in his hands(not) to see us through the difficult times ahead.

 

[joe-90]

Unemployment rising, gas, oil and electricity prices rising, food costs rising.

House prices falling, growth falling.

Hang on to your hats - this could be a crash of Wall Street proportions.

And the really bad news is - that it's only just begun.

 

[Shytalkz]

I'd hate to see you in a *really* despondent mood, Guiseppe.

 

[joe-90]

Yeah, and sadly it will last until the end of our lives.

 

[Bilioustrumpstaine]

Someone should let the banks know that they should only be giving out 50% mortgages.

Newspapers just make a lot of this stuff up, this is why there are such varying figures.

The truth is nobody really knows, to any degree, what the economic future holds. (Except happines personified AKA joe)

 

[joe-90]

It's too late for the banks to do that. All the people with 100% mortgages will soon be in negative equity. When they default on their home loans the banks won't get back what they lent out when the houses are put up for auction - just like in the USA. The domino effect has already begun.

 

[Bilioustrumpstaine]

Why is it too late ?

Banks could change the criteria overnight if they wanted to.

So from tomorrow we could see 50% mortgages if the banks held any creedance to the forecasted meltdown.

 

[Shytalkz]

Fantastic: I'll get loads of surveys then . Every cloud and all that...

 

[joe-90]

Why is it too late ?

Banks could change the criteria overnight if they wanted to.

So from tomorrow we could see 50% mortgages if the banks held any creedance to the forecasted meltdown.

It's too late for all the dosh they've got out there.

 

[oompah]

So from tomorrow we could see 50% mortgages if the banks held any creedance to the forecasted meltdown.

How would the banks/building societys make their millions, thats why they lend out so much to rake in the interest.

 

[Bilioustrumpstaine]

Time will tell.

 

[joe-90]

OK then think about this. The world uses 87,000,000 barrels of oil each and every day. The Saudis are going to crank up the pumps to add another 200,000 barrels per day. Fantastic! That's 87,200,000 barrels per day. The Saudis have saved the planet.
Can you see why I'm not jumping for joy?

Now consider this:

In Europe there are 450 million people. In The USA there are 300 million people and in japan 125 million people. Add them altogether and you get 875 million people living in industrial countries.

Now consider that India with its 1.1 billion people and China with its 1.4 billion people have decided to industrialise.

Add them together and you get 2.5 billion people that suddenly want to get out of the fields, off their bikes and get into a modern city, and drive a car. Where's the oil coming from? We can't raise the supply - so where will it come from?

 

[oompah]

Read this,this really is doom and gloom.
http://www.thisismoney.co.uk/news/article.html?in_article_id=443083&in_page_id=2&ct=5
and this
http://www.thisismoney.co.uk/news/article.html?in_article_id=443044&in_page_id=2