where will it all end? will it end? are we just moving into a new era where people will be in debt their whole lives?
2007-01-30 08:46:12 · 6 answers · asked by Notre1Dame 2 in Social Science ➔ Economics
Sadly we are caught up in materialism and consumerism.
We all want to have nice cars even if we can't really afford them.
It's a trap. Chrimbo, Valentines, Easter, all a financial trap.
House prices are due to lack of supply. The government has a 20 year program in place for lots of building which may alleviate the problem a bit, if we don;t have a recession first.
2007-01-30 09:26:17 · answer #1 · answered by Great Eskape 5 · 0⤊ 0⤋
The personal debt levels in Britain are a real problem.
Balancing the economy is a very complex task. The problem is how to raise interest rates to put people off spending, but not raise them too much to force people into a situation where they fail to repay mortgages and risk losing their homes or declaring bankruptcy.
I think the US economy will collapse in the next 2 or 3 years and this will cause a stock market crash in the UK
America is in serious economic trouble, but they cook the books to sugar-coat the economic situation. China has more US dollar liquidity that America, all obtained by US borrowing from Communist China. Bush has screwed them but they’re not aware yet.
2007-01-30 09:03:28 · answer #2 · answered by Cracker 4 · 0⤊ 0⤋
Probably interest rates will start to rise, hopefully that will slow things down a bit. We don't want them to go too high though - hopefully we won't see a return to the mid - late eighties when interest rates soared and loads of people got into negative equity on their properties. I personally hate getting into debt, and always try to pay credit cards off as quickly as possible, and not get any other loans apart from our mortgage! And we always go for a fixed rate when we re-mortgage as well.
2007-01-30 08:57:51 · answer #3 · answered by Jude 7 · 0⤊ 0⤋
Look forward to more Bank of England interest rate rises over the next 2 years to bring us back to the early 90's that ruined mortgage payers like me then.
2007-01-30 08:51:00 · answer #4 · answered by Del Piero 10 7 · 1⤊ 0⤋
Yes, they will be in debt their whole lives. Governments will never dare put up interest rates too high, or they will cause a crash.
2007-01-30 09:23:09 · answer #5 · answered by Veritas 7 · 0⤊ 0⤋
More and more people will lose their homes.
declare bankruptcy.
wont be able to
afford a mortgage.
will be homeless
bcos the council
have sold their
properties.
2007-01-30 08:53:27 · answer #6 · answered by madamspud 4 · 0⤊ 0⤋