Current economics

[unclebulgaria67]

I have come to the conclusion that the current government are on a journey towards rebalancing the debt situation, government versus private. In the Budget before the election, there was a clear sense of direction in increased private personal debts and to reduce government debt.

 

We have since seen student grants converted to loans, with students now expected to leave University with about £50k of debt. There has been an increase in Bank lending to people, with credit cards and loans more available than they have been for years. Lending for buy to lets has also seen an increase with record amounts borrowed. Average house prices are now predicted to increase by 5% this year. With the welfare cuts, we may well see people taking out credit.

 

It may well be that the government and Banks are trying to increase profits in the finance sector, so that this benefits the economy and government gains tax revenues. But this risks another financial bust within 10 years, if there is an issue affecting economies, where people cannot repay finance.

 

The question is whether the current government are repeating the same mistakes as before i.e too much personal debt being racked up, a temporary boom that cannot last and a bust when it goes wrong.

[tobyjugg2]

I agree. The problem is that those in charge seem to perennially think they can 'manage it' to ensure it doesn't crash, and I don't doubt that those that are really in charge also think 'the population can pay if we get it 'wrong' again, and in the meantime, we will make big profits.

 

sad that we allow it.

[unclebulgaria67]

Crashes are almost deliberate or they don't stop them happening. Look at the wealthiest 1% and see how much their wealth has increased since 2008.

 

If you have the right connections, you receive warnings about potential financial problems. A late uncle of mine with a fair amount of money used to receive information from city insiders which were often true, but not in the media. They could make changes to investments, before the information became public, so they did not lose money.

 

The big problem is the amount of financial crimes that are being committed. There have been many companies reporting a false level of profits, there is widespread rigging of markets, companies are miss selling to consumers or acting in underhand ways, companies are involved in tax avoidance verging on evasion which would be illegal. Etc etc.

 

As i have said before, the worlds financial system is bust and it needs major surgery. Cut back on the greed and try to bring back honesty into the system, where there is trust.

[tobyjugg2]

The big problem is the amount of financial crimes that are being committed. There have been many companies reporting a false level of profits, there is widespread rigging of markets, companies are miss selling to consumers or acting in underhand ways, companies are involved in tax avoidance verging on evasion which would be illegal. Etc etc.

I think the real big problem is not only that we all know they do it, its that its been plastered all over the media and the worst that happens to them (except for a scape goat or two) is - Nothing.

 

What has happened to all those staff who fiddled the mechanisms, and were reported on media in the act - some of them (not all of them) , who hadn't already moved job got fired - I think.

Diamond lost his Knighthood and some bonus whoop e Doo and walked away with 10'ss if not 100's of £nillions.

 

Why stop when its so profitable and non-prosecutable?

 

Where are the prosecutions?