When will this money crisis be over?

[Londonlade]

How long is a piece of string but realistically when are people thinking this financial crisis will be over?! Or is it the new normal?

Life is still an awful lot better than it used to be even if it’s not as perfect as it possibly could be.

As long as the middle has enough money to pay the bills have a bit of fun on a day-to-day basis a few little treats and maybe a holiday that will be enough to keep the masses at bay. So that is what will be done.

The poor are used to this this is their life anyway.
And the Rich will scoop up any fire sale assets that they can to get richer.

Its business as usual for most.

When the Tories implode

Historically speaking these events last a good 2-4 years and, if we follow the typical pattern, there will be a period of mass rebellion/war for a number of years before a huge cultural reset. So buckle up for a while yet!

Or at least the single market. Unfortunately that would require some element of admitting we were wrong, so never going to happen.

I’ve been saving for my 50th since I turned 40. I’ve planned a lot and although my birthday is in the last quarter I intend to celebrate the whole year. This recession had better step back long before 2024 (I know making it all about me).

@Thehonestbadger which generations are you comparing too? I can only look at my parents who had indoor bathrooms & heating, a better welfare state, better private pensions, earlier state retirement, more wage growth, cheaper housing & much more social housing. Equality probably not so much but we don't really have that now looking at woman victims or violence, rape prosecutions & gender pay gap.

About two years.

It's only just begun, next up is massive rise in council tax - woohoo.

Oh and I’m fricking cold and have turned down my thermostat and sleeping in a onesie, dressing gown with duvet and blanket.

Yes admitting we’re wrong and also being obliged to join the Euro. Can’t see it to be honest.

What does surprise me somewhat is how unprepared for this so many people have been.

Did people honestly think that stupidly low interest rates and very cheap food was going to last forever?

These things come in cycles as history shows, yet so many buried their head in the sand and thought this day would never come.

It's not just us either, this is happening on a global scale as will happen the more we become a global society.

also the NHS hasn't only just been introduced

Unless you’re already poor.

This is enlightening

Did people honestly think that stupidly low interest rates and very cheap food was going to last forever?

well the BOE thought inflation was a blip so i'm not sure why the average joe would assume this was coming & when.

Most people don’t think beyond the end of the month and that includes some people that are highly intelligent and in extremely responsible jobs.

Anything on youtube with "The Plan Is" in the title is something I would avoid at all costs. Care to give us the gist WorriedaboutFIL?

Most people don’t think beyond the end of the month and that includes some people that are highly intelligent and in extremely responsible jobs.

we amassed a lot of savings through covid but I was scared to move house. Financially I probably should have moved then.

Well I am very much an "Average Joe" but as I said in my post know that these things happen in cycles.

Boom and Bust has been a "thing" since the dawn of time.

So supply and demand. Less grain means producers of bread, cereals have to pay more to secure the grain. There is less so those who pay less won't get it. Probably why we are seeing fewer own brands because the margins are too low. Generally, the fuel crisis means everything is more expensive as fuel is involved in everything from transportation to the factory's energy costs.

Banker/Economist explains rising inequality

Boom and Bust has been a "thing" since the dawn of time.

we never recovered from the 08 cycle though

It’s amazing how people are so easily duped into believing anything. The lie has been swallowed that Ukraine caused this. While bad decisions are taken by our governments in front of our very eyes. It’s this distinct lack of understanding about how the economy works that is worrying.

It’s like no one can see how printing £450b in two years to pay for Covid Woolf cause disaster. How no one can see that the current tax rises are going to deepen the recession. How everyone missed just yesterday the announcement that Sizewell C is about to be scrapped. That’s right. At at time when everyone is whingeing about high energy prices, Thayer completely miss that the government is exacerbating their own mistakes by scrapping plans to build a major power plant.

How can people not understand surging prices?
Oil/fuel prices mean higher transport costs for goods.
Energy prices mean higher business running costs as there is No cap on business energy prices - means prices of goods and services have to rise.
Shortage of staples like wheat and sunflower oil from Ukraine means higher food prices which when combined with the above result in the huge increases in supermarket prices.
Interest rate rises means higher debt ratios for businesses who borrow money.
Interest rates rising are meant to calm inflation.
Historically, rates of 5% are the norm, we’ve just had 11 years of extremely low rates due to quantitive easing ( printing extra money basically) and it just couldn’t carry on, Covid, Brexit and Ukraine have created the perfect economic storm. It’s all now ‘priced in’ to the global stock markets so as long as there are no more ‘surprises’ then things should calm down in 2024.
When you look at mortgage deals, 5 year fixes are cheaper than 2 year fixes, that means lenders expect things to improve within 3-4 years.

Predicted future rates are already dropping, doesn’t help those due ti off very low fixes though.
I’m torn between being pleased that our savings are finally getting good rates and feeling horrified for my DD as she comes off her fixed mortgage soon and I really don’t know how to advise her.

I don’t think it’ll ever ‘end’ as such but hopefully after a difficult few years things will gradually improve.
Obviously if it’s the start of a period of depression then that’s a very sad and scary thought. I’m trying to take solace in that even if it’s tough for us potentially as our small children mature they may experience a boom time similar to the baby boomers. In a lot of ways I’d rather they had success than us as I see the guilt and sadness a lot of boomers feel about their struggling children.