Cardinal blames the credit crunch for a 'breakdown' in trust

Discussion in 'Current Affairs' started by slim, Dec 25, 2008.

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  1. Is this man living in the real world?
    The credit crunch has happened because too many in society cannot take control of their lives and live within their incomes.
    This combined with the fact that financial institutions which helped create the mess we are in by not only allowing, but encouraging people to borrow more than they can afford have at last come to their senses and are now only allowing borrowing within the limits that should have been in place for the last twenty years.

    http://www.dailymail.co.uk/news/art...es-credit-crunch-breakdown-trust-society.html
     
  2. Re: Cardinal blames the credit crunch for a 'breakdown' in t

    All the money went in some Shylock's pocket ....or all the money just never existed....take your pick.....we are ALL feeling the pain
     
  3. wet_blobby

    wet_blobby War Hero Moderator

    Just think, if the shops could of sold things at the prices they now are and banks could of lent money at the rates they now charge interest and governments didn't tax the will to live out of people so they could all live the high life do you reckon we'd be in this mess?

    Bet recycling will go down the pan, fcuk the planet, the chinkys aint buying it from your local council anymore.
     
  4. Regrettably WB I think the answer is probably "even more so".

    The problem hasn't been that things have been too expensive or that bank interest charges have been too high or that the Government tax levels have been crippling - it is the fact that money has been far too easy to get hold of - especially by people who have little if any real prospect of paying it back.

    What SHOULD have happened is that banks, credit card companies etc should have seen the problem coming. If someone who earns £10,000 a year (for illustrative purposes only) is given a credit line of £30,000 you just have to ask the question - if things get hard how will he pay it back?

    The answer (as far as home loans/mortgages was concerned) was some misguided expectation that house values would always go up but as we all know "what goes up must come down".
     
  5. wet_blobby

    wet_blobby War Hero Moderator

    My point, rather simplistic but, hey thats me, is. There was no other reason apart from greed that put profit margins so high that people had to borrow money just to get on in life.
     
  6. :pukel: [quote="broadside ]


    The problem hasn't been that things have been too expensive or that bank interest charges have been too high or that the Government tax levels have been crippling - it is the fact that money has been far too easy to get hold of - especially by people who have little if any real prospect of paying it back.

    What SHOULD have happened is that banks, credit card companies etc should have seen the problem coming. If someone who earns £10,000 a year (for illustrative purposes only) is given a credit line of £30,000 you just have to ask the question - if things get hard how will he pay it back?

    The answer (as far as home loans/mortgages was concerned) was some misguided expectation that house values would always go up but as we all know "what goes up must come down".[/quote]

    Broadside you have identified the problem in a nutshell.
    Much of the population will borrow as much as they can without thinking that at sometime the debt will have to be paid back.
    This government has made it too easy for the debt to be avoided, it is now possible to live the high life for a decade, spending on consumables like holidays, clubbing, fast cars etc and then declare yourself bankrupt.
    Result the debt is frequently cancelled after as little as a year.
    This of course brought in by the Labour government
     
  7. Re: Cardinal blames the credit crunch for a 'breakdown' in t

    We still live by the ' if we can't pay for it, we can't have it'!
    My parents would turn in their graves if they thought we had anything 'on tick'. OK, I know, we have credit cards, but, I always pay it off at the end of the month, and no, I'm not being smug - just been brought up 'practical' and hope my sons are doing the same!!
    It is so wrong to keep offering the money, when there's no hope of paying it back, wasn't that the trouble in America - morgages that couldn't be repaid?
    JW
     
  8. Re: Cardinal blames the credit crunch for a 'breakdown' in t

    Wasn't this the same Cardinal who as Bishop turned a blind eye to a particularly active paedophile priest? So much for passing the buck. If you cannot trust the church who can you trust (matelots and booties aside :) ).
     
  9. janner

    janner War Hero Book Reviewer

  10. Actually this is EXACTLY what they should be doing (albeit a bit like shutting the stable door after the horse has bolted).

    As the articles says, "There has also been a jump in the number of loans offered to higher-risk borrowers as more providers adopt so-called risk-based pricing, and this has pushed up the average. ... At the beginning of the year the highest APR offered on a £5,000 loan was 13.1%, but borrowers with a weak credit rating can now expect to pay between 14% and 24%, with five loans even charging rates of between 50% and 70%".

    If you have the ability to pay back the loan (a reasonable credit history) you should still be able to get a reasonable interest rate on any loan.

    If you don't then it seems the banks have at last woken up to the reality of covering their risk by either forcing people to think twice before borrowing or making sure that they recover more of their advance as early as possible in order to mitigate losses in the event of subsequent default.
     
  11. :whew: Sounds like an article i have just read , By Angie Knight :pukel: head of the BBA as to why the banks cant pass on the full cut in bank base rates, to mortgage holders!!!!! but can do it for your saving rates Ha! Ha! :thumright: The Queen of bling is still in charge!!! nobody is prepared to bullet her :rambo:
     
  12. Re: Cardinal blames the credit crunch for a 'breakdown' in t

    I have no sympathy for people who live beyond their means but I do with people who want to work and through no fault of their own have lost their jobs.
     
  13. Re: Cardinal blames the credit crunch for a 'breakdown' in t

    With you on that one Fink
    JW
     

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