If we all did not owe a penny we wouldn't be at risk - would we? :D

I've no idea what you're going on about, or who you're talking to! :wonder:

Hmmmmmmmmm:idea:

Perhaps I really AM psychic.:)

This is the second time today I've been able to refer to a post I made ages ago.:p

I'd been saying for a while that the MAIN reason the fat, scruffy, scots pension thief wanted to be PM wasn't anything to do with ambition. Nope, he just wanted out from under his economy built on sand, before it all goes tits up.:mad:

Then, he can stand back, point at Darling, (who, btw, made a complete balls of both the other jobs he's had) and say, "Not my fault, guv!"

Alcazar

This makes interesting reading: Tax Freedom Day

Adam Smith Institute - A history of Tax Freedom Day

The first day of the year when we actually get to keep what we earn rather than give it to the tax man (includes all tax, including VAT, National Insurance etc.)

1965 27 April 1987 5 June
1966 4 May 1988* 5 June
1967 16 May 1989 3 June
1968* 22 May 1990 3 June
1969 29 May 1991 3 June
1970 2 June 1992* 29 May
1971 25 May 1993 23 May
1972* 17 May 1994 23 May
1973 11 May 1995 26 May
1974 27 May 1996* 25 May
1975 2 June 1997 26 May
1976* 30 May 1998 28 May
1977 31 May 1999 3 June
1978 27 May 2000* 3 June
1979 29 May 2001 4 June
1980* 11 June 2002 26 May
1981 18 June 2003 23 May
1982 20 June 2004* 25 May
1983 14 June 2005 29 May
1984* 14 June 2006 3 June
1985 11 June 2007 4 June
1986 7 June 2008* 2 June

* Leap year makes TFD appear 1 day earlier.

So the tax burden has gone up recently, but still well behind the average when the conservatives were in power, especially just after Thatcher came to power :freak3:

There is a danger of the markets talking themselves into a serious recession. But given the low level of unemployment currently it doesn't feel like a recession. The early '80's now that was a recession!

Dont think any great recession is on the way, more likely a return to normality rather than the over-borrowing and cheap credit for anyone and their dog that has been the norm for the past few years.

To be honest, things like this happening dont really effect the average people in the UK that much ( steady job with both the couple working, low outgoings compared to income, reasonable long term fixed mortgage and some savings ), they hit hardest rich people who have invested unwisely, and poor people who have borrowed money they cant afford. OK, there is some knock on effect for people like builders now less people will be having extensions or doing up BTL's.

For most people in a normal office or civil service sort of job, that dont rely on booms in the economy, who havent taken out a stupidly high mortgage or 'released their equity' what major difference will it make ?

Personally I think lenders tightening up their criteria and not encouraging people on low incomes to get 6x mortgages is no bad thing ( and I bet Northern Rock and all the sub-prime lenders in the USA wish they had done it earlier ! ).

PMSL :D

Currently I can see us having a few hard months maybe although nothing is actually definate yet, construction is moving well still which is always a good sign as that is one area where things dry up in a credit crisis situation {or recession} there is definately a tightening up as a few construction companies has shut offices which is bringing new employees to the market place which in turn brings new stories of companies struggling etc.

Interesting times ahead and the next 4-6 months will surely make or break the whole speculation especially as we are usually 6 months behind things that happen in the USA.

Only time will tell.

Things were always going to go pop sooner or later, and the longer all this debt binging (creating an illusion of wealth built on debt) went on for the bigger the pop..... and it went on for a hell of a long time!!

Many economists are saying this is already the most serious financial crisis since the Great Depression of the 30's, and it looks set to potentially get much worse.

They are talking about a collapse of the financial system, not just a recession.

LOL you really are on the Mogadon! Your ridiculous doom laden prophesies are as wrong now as they were 6 months ago, and one year ago, and 2 years ago, and 3 years ago etc etc etc etc etc etc etc.....

This is not like the 30s depression, as any 1st year student of economics realises. Not saying there aren't problems, but the overblown nature of these statements don't hold up to closer examination :hjtwofing

Wonder if the 400+ point rise on the dow, the 3/4% cut in us interest rates and the better than expected results from 2 us banks will be the headlines of the news tonight.......

how much further can they cut it :wonder:

About 2.75% ......

How many years did Japan have 0% rate?

This isn't rocket science. The West has had it very good for a very long time, maninly at the expense of less fortunate nations. Now economic growth is shifting East. It's both obvious and inevitable. Doom-talk about mortgages etc is just the tip of the iceberg.

Yes, the current crisis is a blip (I still managed to afford a loaf of bread today, more than some less fortunate people) and there will be lots more ups and downs. But over the next few decades, we, the US and Western Europe, will reap what we sowed in the 20th century.

It's fookin' obvious. And there will be tears along the way. Get used to it :rolleyes:

Richard.

During the last recession we did not have Indian And Chinese economies to consider. All these cheap electronic imports have destroyed our manufacturing industry.

Pay some bloke in England £8 an hour to put a tv together, or pay some Chinese bloke £8 a week hmmmmmm:wonder:

I am happy its OK for you but watch this year as shed loads of independant restaurants shops and bars start to shut. I have closed a restaurant already this year and that means people out of work. They may be unimportant to you because Chefs KP's and waitress' are low wage earners but they are still people who will struggle to find work in the financial environment that is developing. Once the trickle starts with small town shops and Restaurants closing the sales reps who sell to them will start to loose their jobs and the trickle turns to a flood.

Very true posts from KOT and LPB. That is the reality :(

LPB, sorry to hear that, and I do agree, but my point was about the people who will see an effect much sooner from the recent problems. What you have highlighted is a long term effect due to a downturn in trade, which will always happen to some extent as things change within a country.

People may have less money to spend in restaurants if they tighten their belts, but most of the people who lose their jobs will get a job somewhere else doing something else ( for most minimum wage unskilled workers then a job as a waiter is the same as being a cleaner or working in a factory ).

As an example, Britain used to be a manufacturing country - a high percentage ( almost 75% IIRC ) of our workforce was employed in some way in engineering and manufacture, but this has gradually changed over the last 10 to 20 years due to the cheaper imports, but we dont have 75% of the country unemployed as those who did work in these areas have moved on to other things.

KOT - the chinese situation is also changing though, the chinese workers now all want cars and western luxury goods, they demand more wages, the manufacturing costs go up, and this ends up with China not being so cheap anymore. This is the same as happened in Japan ( remember when MADE IN JAPAN or MADE IN HONG KONG was a sign of cheap goods ? ).

PeteM95 must be the most miserable f*cker on here. :lol1:

He only comes out of the woodwork whenever there's bad economic news on the horizon, and you can tell he's just so chuffed that people are in big trouble and going to lose everything.

It's almost like he's on a personal crusade to spread misery! :nono:

So Pete, do one! :hjtwofing

True. But the scale of things, and speed of change, is what makes the current situation worrying for all concerned. 80% of rural Chinese are still living below the poverty line. China faces massive problems trying to address that imbalance and has not shown itself to be very adept at handling internal politics. India is in much the same position with a combined population ten times that of the USA alone.

It's going to be a rough ride :(

Richard.

If Webby was to ban Pete for replying to my post that would be quite ridiculous and would negate the reason for having a forum in the first place! I sincerely hope that what you say is not true!

Come on Pete-what do you say?

Les

Who cares?

You know exactly what he'll say, the same thing he always says. :Whatever_

Indeed - the crash was on the 11th Mar, it's back to growing again now :D

Pete, given that we know you speak from a position of comfortable affluence (like £200k pa income from property rental income alone) what is your advice for those currently in a less fortunate position, for whatever reason?

Don't talk about what people should have done in the past, what about NOW and going forward?

I would thank you for a serious answer. You are clearly no fool where financial planning is concerned.

Regards,

Richard.

Richard, I would go out and rob someone who earns say, £200K from rental income alone ;)

I know an awful lot of Chefs/restaurant managers/waiters who would be very upset at the idea their job was the same as a cleaners.

I doubt Chefs/Restaurant Managers are on the minimum wage. :wonder:

What would I do now?

That's an almost impossible thing to answer as what is right for one person is not right for another.

My general opinion is:-

1. Sell property bought for rent in the past 18 months - NOW!

2. Hold property bought prior to mid 2006 as long as it is being let.

3. Ignore the £35,000 guaranteed deposit scheme and spread your savings around many institutions ..... I recommend a max of £10,000 in each institution (as I do not believe in the guarantee if there is a rush on a Bank!) - with my recommendations you can only lose £10,000 and not £35,000!!

4. Put £30,000 into Premium Bonds, safe and I have been returning 8% on mine.

5. Do not buy any car which is newer than March 2001.

6. Mods are a waste of money - forget them if money is about to become an issue.

7. Make yourself very important to your Company and then ask for a big increase in Salary.

8. Pay off as much of your Mortgage as you can.

9. Cut up every Credit Card you own unless you pay the balance off every month.

10. Make sure you are getting CashBack on every £ you spend on your Credit Card .... air miles and points are useless - you want CASH!!!

Do the above and you will be affluent ........ the Gospel according to Pete :D

Labour acted as they did, when they did, in good faith - I genuinely believe that.

With the benefit of hindsight it is easy to say where they may have gone wrong.

In their drive to lift children out of poverty, they have put excessive money into the hands of people who should not be parents in the first place .... these we see spending on drugs and booze, fags and gambling. So, it should be targetted (but targetting costs a huge amount of money in Admin.)

In their drive to lift the education of our children they have pumped money into schools where it has been used in paying extremely good wages to teachers ....... I, for one, would rather it went to books and other stuff - as most teachers haven't lifted their game in exchange for higher pay.

In their drive to improve the NHS a huge amount of money has been pumped into Health Trusts, a lot has gone on pay and on giving Doctors a 30% pay rise with a 20% reduction in their working hours.

So, mistakes were made. They spent money when it became available, on what they thought could improve our lives - and, if we are all honest about it, we have been through the most prosperous and steady 10 years in the UK history.

Under the Tories we suffered rampant inflation, massive interest rates, huge unemployment, destroyed manufacturing base, reduced workers rights and an 'I'm allright Jack' attitude ...... you remember those days, as well as I do - therefore your desire to return to them puzzles me somewhat.

Many are salaried and taking into account the hours they work most in the industry are not far off.

if you don't think the gov will stand by the £35k guarantee what makes you think you will get your premium bonds back?????

and 8% on £30k is VERY unusual!