Most businesses are serial borrowers. Your local shop rarely buys it's stock with cash. They borrow the money. Hopefully get you to buy the stuff then pay the loan off. Then borrow more money.Originally Posted by drahcirk
Most businesses are serial borrowers. Your local shop rarely buys it's stock with cash. They borrow the money. Hopefully get you to buy the stuff then pay the loan off. Then borrow more money.
It's certainly a sore point, thanks to Brown & greedy Bankers
plus all the people living on credit.
It has put the thrifty people at risk through no fault of their
own. Have avoided get rich quick shares as knew it was too
risky.
As "afterlife" pointed out the amount of people being ripped off on Sat TV. How much money is wasted on Mobile Phones & their
gimmicks. Kids nowadays think it's their right to have these
things.
When I had a mortgage I made do with 2nd hand things &
items I repaired. It was all too obvious that you can't run a
country for too long on credit before it crashes.
@ keith mawer, if you have above £500.00 to save you can
still get 7.05% for a yearly investment.
Regards catoro.
re above 500 term accounts... for me they have to many restricions ,, usually no withdrawals or some say 2 a year!!!
well afterlife, its just under 8mill subscribe in one way or another, a third of those are on the basic package, the others can well afford the tiny sum of 35 to £50 amonth, and churn at the moment is at record rates,
and to dets remark that capitalism got us into this mess ,i know not, borrowing by brown has got us into this bog were in, NOT CAPITALISM,.
spot on m8 its capitalisam whats gone pair shaped not socialism. china is now loaning money to the west. And we have just made the ritch supper dooper ritch and they now have so mutch money they fill there swimming pools with £100.000 bottles of luxury wine and take a swim. I think socialism could be a good thing china is not in this mess like we are probs because the capitalists sent all the jobs over there because they wanted more money. ( I BLAME BUSH )The point of having a zero interest rate is that existing debts do not continue to grow.
Hopeless socialism it may be but let us not forget that rampant capitalism got us into this mess.
I never thought I'd see the day when the USA turned to hopeless socialism but they are now more to the left than China
So Brown caused the two largest US Mortgage Companies and several US Banks into bancruptsy - prey tell me how ?
by lending money, which brown almost forced people to borrow, as soon as a bank realised they didnt have n e more to lend ,hey, guess what, errrrrrrrrrr what do i do know dad,. and america woke up and saw the smoke, yes a bit late , but then people/banks have histolrically lent to each other,.all down to borrowing,.
zeke, iv been in business all my life ,knowing a lot of other traders, and, not one of them borrows to buy stock ,that would be financial suicide, the reason we recapitalise is to expand/extend etc,.
This issue to me has nothing to do with any individual...like Brown etc etc
It is much more complicated than we think, and since it is happening in west (America , Europe....), it surely has something to do with Capitalism...... In fact this is nature of Capitalism... The growth and depression is sinusoidal.
Anyhow with US being in such mess, UK, Germany, France, Spain and all other big countries are following / will follow suit.
Although it isn't felt as much in China, but I think, China will go that way as well.
China already had shops closed, with us buying less stuff, they see jobs go too.
Less import of oil and metals saw the drop of oil prices and raw material prices drop, like copper.
China will be hit big if the economy here drops, the jobs that went from here to the Chineese are the jobs that are the first to be hit, cheap labour in production.
Spot on >Cor<! In fact USA and China are very similar in that they are both low wage economys, albeit China's is at a much lower level. They still have their super rich though, just like almost every country around the world, all built on the backs of the downtrodden workers!
RE TRACKER MORTGAGES.. ok say ( and i think it will interest rates got zero!!)... do the banks then charge no interest!!!!!!
If the bank rate went to zero or lower (negative) the high street mortgage lenders would still charge a positvie rate to cover costs. Note "trackers" are linked to the Bank rate - not tied to it.
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