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All the money has gone!!!

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Author Topic: All the money has gone!!!  (Read 100 times)
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« on: June 22, 2008, 12:59:21 pm »

Many people in the UK are now worried about the future for themselves and their children in the months and years to come. Fuel prices have risen to astronomical levels and domestic fuel is set to rise a further 40% by the end of the year. Everyone is feeling the pinch and food prices have risen to well above the rate of inflation because of transport companies pushing the rise of fuel onto the consumer. Property watchdogs are now preparing for a crash in house prices across the UK and especially in the South East with an estimated fall of 10% in value in the next quarter. This will cause negative equity in thousands of properties across the country. Further to this in a last ditch effort to curb inflation the Bank of England is considering increasing the interest rate to stop people spending putting further strain on home owners.
The Government has being approached by consumer watchdogs and asked if they are prepared to spend some of the £9 billion which is currently in reserve, to help the elderly try and cope with the 40% increase in domestic fuel bills. The Government has stated on Radio 5 Live last week that pensioners have already been subsidized and they are just going to have to grin and bare it like the rest of Europe.
The Government was also asked if it was going to help some of the businesses that face closure due to astronomical fuel prices and again they have been told to do the same – grin and bare it. The number of repossessions of homes due to individual bankruptcy in May to June has risen by approx 60,000. Property watchdogs are predicting that because of the high price of fuel, mortgages, domestic fuel and food this will double in the next few months to over 100,000 repossessions.
The Banks are currently withdrawing mortgage offers because of the lack of liquidity in the banking system. The money has all gone and there is no more money available to bail people out who already face bankruptcy.  The bank of England in an act of desperation released £5 billion into the banking system just recently, that money has already been absorbed into the system and banking bosses are suggesting that £500,000 billion is needed before they even scratch the surface of the problem.
Most of the blame for this countries predicament is being placed on the shoulders of Gordon Brown for encouraging ‘no restraint’ in lending to consumers in the period 1997 to 2007 while he was chancellor. There is a pot of money in the system which is lent out to bridging banks, companies and the consumer in the UK. There has always been restraint in the past as to how much of that money gets lent out. The bottom line is that the pot is completely empty and there is no more money to lend out. Young families now face the prospect of not being able to acquire a mortgage in the foreseeable future and having to rent property. The trend in television advertisement by the banking system is now for insurance, life insurance and other packages in which the consumer pays money back to the banks and doesn’t borrow. This is an attempt to claw some of the money back out of the consumer and back into the banking system. The problem is at the moment because of the pinch no one can afford these packages.
In the United states the banking system is on the verge of collapse and house prices have completely crashed by 50%+ forcing millions into negative equity and bankruptcy. Some of their money moguls in the US are suggesting a period of depression resembling the 1930’s depression.
The truth is that the UK is spiraling out of control and the Bank of England or the Government has no idea how to stop this trend. What money the Government does have spare is being sucked away to fund two wars we shouldn’t even be in.  Tony Blair when he left the office of Prime Minister knew what was coming and that’s why he went. The irresponsible people that governed this land for ten years with no restraint on spending have been brought to bear for their ‘buy now, pay later’ attitude. The trouble is that we are all going to have to pay for it as well.
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Posts: 49

« Reply #1 on: June 22, 2008, 06:51:32 pm »

Your being a bit tough on Gordon mate, its not his fault its ours. We were all jubulent when we got rid of the Tory regime back in 199# odd and things were looking inky dorey for all us labour stalewarts. The damage however was all ready in progress before the last election and the one previous but we all held faith and kept em in till now. So lets do the the guy a favour at the next election (Spring 2009, get a bet on) and let him spend the rest of his life stress free. DOES HE LOOK BOTHERED Roll Eyes Roll Eyes Roll Eyes
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