Mud-club
Chat & Social => The Bar - General Chat => Topic started by: muddyjames on October 21, 2008, 17:01:20
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what is going to happen in this ressesion? Everyone keeps going on about it going to last 2 years but I can't work out why it is going to be a bad thing?
If people have no money then surely the price of houses, fuel, food, life in general is going to come down in price because of it so there for a good thing?
Can someone explain please.
I feel very nieve for asking this as I feel I should know but I dont. :oops: :oops: :oops:
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what is going to happen in this ressesion? Everyone keeps going on about it going to last 2 years but I can't work out why it is going to be a bad thing?
If people have no money then surely the price of houses, fuel, food, life in general is going to come down in price because of it so there for a good thing?
Can someone explain please.
I feel very nieve for asking this as I feel I should know but I dont. :oops: :oops: :oops:
As the economy slows down, businesses go bust and people loose their jobs. Houses get reposessed.
I think there are 1.8 M unemployed now in the 80't there was nearly 4 M... its not a good out look.
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so looking for a new job isnt the best thing to be doing right now as I am in a fairl "secure" job now. (with my council on the bins)
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so looking for a new job isnt the best thing to be doing right now as I am in a fairl "secure" job now. (with my council on the bins)
stick with it, essentially with houses many people who bought with a large mortgage in the last year (85-100% mortgage) will find themselves in negative equity, where their mortgage is worth more than their homes. Anyone without a fixed rate mortgage will get a crap deal on their new mortgage and pay more out a month, everyone will be trying to recoop money so general bills will go up also blue collar workers will put prices up. So pretty sh*tty for everyone, unless you are in a job that will always be required, eg rubbish, or school or police, or fire or ambulance etc
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I've been trying to sell a 2 bedroom flat for 8 months now, the first buyer screwed us about for 7 months with paperwork, I think they had insider knowledge of what was to come, soon they were asking for 15,000 off the price, :evil: after that the next buyer cant get a mortgage now, so I'm [!Expletive Deleted!]. now have people offering 50,000 less than asking price.
My job is on the line as the pub trade has bombed as well, with people buying cheap booze in the supermarkets.
It's gonna get worse as well.
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In the eighties here was indeed 4 million or so unemployed but.......Maggie decided that the way they counted the unemployed figues was not good so she recalibrated the system and the figure dropped to around 2.4 million! So we're not actually that far away from that figure! (nor have been all along either!!)
Statistics can always be massaged remember :afro:
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Anybody with a mortgage risks ending up owing more than the house is worth too. for those of us trying to sell one we end up giving it away or paying rates on an empty property, a loose/loose situation.
Despite the lack of house buyers the buy-to0rent market is also stagnent, so rental incomes do not cover the interest the value of a house could be earing in the bank, assuming that bank doesn't go bust.
As said above, when money stops moving around then no-one makes their little bit as it passes through their hands, pretty quickly small businesses are failing, we have more unemployment (the gov't have only been able to spend more money becasue unemployment was down/taxes were up), crime is already on the increase, the pound becomes a bad investment for oversees money and it all goes to hell in a handcart.
Basically any economy that isn't growing steadily is in trouble, but for it to be shrinking, well that's bad.
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I feel very nieve for asking this as I feel I should know but I dont. :oops: :oops: :oops:
Thicko!!!
lol stick with the bins mate and dont worry, as long as you've got a fixed mortgage and your in a secure job then its not a lot to worry about. Times like this i love working on the railway :afro:
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Don't fall into the trap of thinking any job is safe, I can assure you its not!
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Although some jobs are more secure than others - especially those in the public sector and essential services.
The biggest problem is that people spend less money, so fewer people are needed to make, transport and sell stuff.
House prices fall, and if you have a big mortgage then you might end up owing more than the house is worth - this is negative equity - but that's only a problem if you want to sell.
At the moment there are four potential scenarios:
A long, deep recession (very bad)
A long, shallow recession
A short, deep recession
A short, shallow recession (not too bad)
Those of us who work in banking are very apprehensive at the moment :undecided:
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I feel very nieve for asking this as I feel I should know but I dont. :oops: :oops: :oops:
Thicko!!!
Yeah yeah tell me something new!!! :lol:
lol stick with the bins mate and dont worry, as long as you've got a fixed mortgage and your in a secure job then its not a lot to worry about. Times like this i love working on the railway :afro:
I renewed my fix term mortgage for 2 years in June so that was lucky!!!
So looks like I will have to stick out my bin job andnot get to play with my lorry license for a while except for weekends on agency. :(
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So looks like I will have to stick out my bin job and not get to play with my lorry licence for a while except for weekends on agency. :(
Yes, probably best to sit tight for the moment and see how it develops...
...and if things get worse I might be joining you. :? Any vacancies?
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no vaccancies but agency people hang around a long time, like 15 months long time!