this credit crunch - is it really honestly real?

(150 Posts)
apostrophe Sat 11-Oct-08 22:30:31

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solo Sat 11-Oct-08 22:32:03

Is it not affecting you then? Surely you've noticed your money doesn't go very far these days!

is this a joke? it is affecting us already. we have barely enough money to live on and are worried that dh will lose his job.

FangolinaJolly Sat 11-Oct-08 22:34:39

Even if it has not affected you directly hmm now I am sure a few months down the line it will do.

If you have a job,savings,mortgage,pension,buy food/fuel,run a car,surely you are affected in some way?Unless you are part of the elite

Lilyloo Sat 11-Oct-08 22:35:17

Yep def affecting us dp has lost his business and making ends meet is a daily struggle am glad it hasn't for you!

Bramshott Sat 11-Oct-08 22:36:04

I think it will take time to percolate through and we haven't seen the worst yet. Like you, we are lucky in that we can absorb price increases so far without too much pain, but the redundancy-bandwagon is just starting to roll, and the concern is that interest rates will rocket in the next year or two, as banks become more and more reluctant to lend. Interest rates at 15% again, like they were in the 90s - now that really WOULD hurt everyone sad

GinghamRibbon Sat 11-Oct-08 22:36:32

Without scare/doom mongering which it sounds like I am about to do.

This is the biggest financial crisis to hit the UK since records began. We are seeing the start. Prices will rise, people will not be able to afford them and consequently businesses will not be able to continue, people will be made redundant on the grounds that if people are not buying, they will not need so many staff and so on......

God help us shock and may it pass quickly. I have my legs/fingers/toes and just about everything that is flexible on this wink

apostrophe Sat 11-Oct-08 22:36:52

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Bramshott Sat 11-Oct-08 22:37:40

BUT, I can see where you're coming from apostrophe. I agree that every time you turn on the news, there are reporters saying "this is the end of life as we know it", and you can't help thinking "err, no, it's not, in most important ways my life is just the same as yesterday thanks"

liath Sat 11-Oct-08 22:37:57

I'd imagine it's all to real for a lot of people already but i do sort of see what you mean - the news is just wholesale doom and gloom then you walk outside and everything looks superficially fine with people out shopping, businesses open etc. I'd imagine that the average high street could look a lot less prosperous in a few months though.

Bramshott Sat 11-Oct-08 22:38:59

In short - the banks are buggered today, but come next year we will all be buggered, but keep smiling and stuff your shoes with newspaper grin

morocco Sat 11-Oct-08 22:39:57

we are ok so far as well. haven't noticed much difference with food tbh, not sure why, maybe I am not v observant, but we always just buy whatever is on sale in bulk and the supermarkets always seem to have discounts on something, elec/gas is fixed til 09, dh cycles to work, mortgage still fixed til july(massive mortgage but we can pay it so far - stuffed if dh loses his job though). have got a few grand tied up in iceland though.

I am imagining 1930's style depression in next few years and it'll be hard to avoid that if it comes. so certainly very very very worried about in 2 years time and not about to spend wildly right now.

liath Sat 11-Oct-08 22:40:37

That's it, Bramshott, or alernatively bend right over and kiss your arse goodbye grin!!

KatyMac Sat 11-Oct-08 22:41:51

I was talking to my dad & he has told me to pay off all short term debt, knuckle down and spend as little as possible & save as much as possible & we might ride it out.....but he doesn't hold out much hope

apostrophe Sat 11-Oct-08 22:43:14

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expatinscotland Sat 11-Oct-08 22:46:30

well, the heat's not on.

but then, it wasn't on this time last year, either.

oh, and scottish hydroelectric sent me this nice, personalised letter today, informing me that they're putting up their prices 20%.

fuckers.

don't have a savings, pension or mortgage, but i guess it will affect us in that there's a lot more going for rent here, and that's not bad for us because we're private renters who will need a new home next year.

we're relatively unaffected otherwise, but we live in the sticks and have got used to cooking everything from scratch and doing pretty much anything close to nothing to keep entertained.

we're pretty resourceful and have and will do any time of odd job or what have you to keep us going.

i've got some scrapbooks to finish up for my kids, and after this baby is born, i'm joining a quilting club and a hillwalking group (i already own all the gear for that, just want to meet some like-minded folks and get used to the lie of the land, so to speak).

Anifrangapani Sat 11-Oct-08 22:48:51

A year ago many people were starting to feel the pinch.... first time buyers were unable to get loans, buisness loans being called in, Northern Rock being taken into public hands,no reduction in mortgage rates despite base rates going down, food riots in Italy and many countries in Asia due to rising prices.

The current stock market falls are symptomatic of a loss of confidence in the banking system and concern with overexposure to low grade debt on the sub prime housing market in the US.

As others have said this is now spilling over into manufacturing and retail sectors. A large proportion of people were buying on credit and that option is no longer there because the banks are no longer lending money (even to each other). Less money being spent means that people will start to lose jobs and prices will increase as margins are pinched.

People who are close to retirement and have had their pensions and/or savings in stocks will feel the pinch as they are required to buy their annuitys with less money.

AbbeyA Sat 11-Oct-08 22:49:17

I think it will get a lot worse and no one will escape. It is very worrying.

expatinscotland Sat 11-Oct-08 22:54:12

'no one will escape.'

Plenty will. A fair few will even make money/come out richer or in better circumstances for it, just as they did in the 1930s and other downturns.

To paraphrase the immortal Rhett Butler, there are two times to make money: empire building or empire wrecking. But empire wrecking is the faster route.

Others will dodge along as always.

The sky won't fall down. It hasn't yet, and I'll bet those folks who went through Black Plague sure thought it would.

liath Sat 11-Oct-08 23:00:19

If we get a flu pandemic too then things really could get interesting.

FangolinaJolly Sat 11-Oct-08 23:03:49

Liath - you are depressing me 1000 fold

Are you a medical person,IS there likely to be a 'flu pandemic,and if you are,should dp who is on immunosuppressants,get an influenza jab?(Wanders off topic,sorry ladies)

a flu pandemic?
that really is doom and gloom.
take the jab.

EachPeachPearMum Sat 11-Oct-08 23:06:10

I am confused by those saying it will affect mortgages- erm the interest rates went down this week- how is that a bad thing? hmm

Yes, food is costing more, but as oil prices have just halved again, that should ease a little, surely, as the increases over the past year have been blamed on the increased fuel costs for haulage and supermarkets.

It's people who are due to retire in the next 10 years who will have problems, due to market collapses- anyone due to retire this year will already have had their pension investments moved out of stocks into cash, bonds etc

SheSellsSeashellsByTheSeashore Sat 11-Oct-08 23:06:10

Are you sure it's anot affecting you? I thought we were okay for now. Our money isn't going as far but I am due to start a new job so problem solved. Then Dh had to ruin my illusion by telling me the money we were going to finish our house with was in the ftse 100. The same house we were meant to be moving into before xmas, the one that has no flooring as yet. We are hoping mil will bail us out untill the shares are better but we don't know if she will yet.

expatinscotland Sat 11-Oct-08 23:09:27

'If we get a flu pandemic too then things really could get interesting. '

this has already happened.

after WWI had just ended, and the world sank closer and closer to depression and a series of bad harvests and a terrible loss of millions of young men in Europe, Spanish Flu killed over 20m more worldwide.

you want to talk about losing everything!

lots of people did. my paternal grandmother found herself a widow at just 18, burying her 2-year-old daughter and then having to leave her village with a square of fabric the size of a pumpkin containing everything she owned and walking to America from Mexico because otherwise she'd have faced starvation. nearly everyone had died and the corn harvest had failed.

she lived, and so did millions of others.

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