Recession in Sheffield

[crookesey 635]

So if you are in work or have sufficient pension/investment income, have not used your home as a piggy bank and don't have huge credit card debts, are you going to be affeced by it?

 

Sure, some folk find themselves in a negative equity position and find it difficult to remortgage, but at least it stops them from stripping even more cash from the value of their homes. They also find it very expensive to transfer their credit card balances to zero interest deals, but in reality these folk were in trouble prior to the recession, they just didn't realise it.

 

I'm by no meams bullet proof and have seen my pension funds and investments go down, but can ride it out on the strength of being virtually debt free. I feel sorry for the youngsters who borrowed 95% or over to get onto the housing ladder only to find themselves paying for something that is now not worth the purchase price. However if their salaries increase commensurate with their career progession they also should be able to ride it out, albeit without expensive luxury purchases.

 

The folk on benefits with no mortgage, investments, pension fund etc; will notice very little difference to the days of boom, because it never boomed for them in the first place. The very wealthy might just end up being wealthy so it will not kill them, it's the folk who are going to lose their jobs through no fault of their own who will be the losers in this man made recession.

 

What if the service/retail sector takes the hit that is predicted? Just think of Sheffield City Centre devoid of Marks and Spencer, Debenhams and Atkinsons, John Lewis would surely consider it's position, we could end up with tumble weed blowing down Fargate.

 

We are told that LIBOR must come down, that banks should start lending to each other and to businesses and that High Street spending should be kick started. Spending will no doubt be done via credit, didn't this help to get us to where we are now?

 

Is there an ecomomist on this forum who can explain matters?

[nickmunich 10]

I'm not an economist, but I can see huge problems building up in the next couple of years, one of the biggest is that the government is in so much debt that it is going to have to start printing loads of money (it probably already is). Which is going to cause inflation, I think they are only doing the 'spend our way out of recession' because if they don't they will get absolutely hammered in the next election with millions out of work.

I honestly don't think they have a clue what they are doing, the list of ****-ups is as long as your arm, but the economic storm which is going to wash over the UK in the next couple of years is very, very worrying.

I was reading about the 'photo-shop' MP, James Purnell and he was on about the Job Centres being a 'one-stop' to get the middle classes back into work, he said they could be retrained as driving instructors FFS. Gordon Brown said with all the draft proofing being funded then people could get work doing that. If that's the best they can come up with then the country is well and truly in trouble.

[chem1st 10]

wanna buy some coal?

[nickmunich 10]

comedy genius, you're too sharp.

[DUFFEMS 56]

So if you are in work or have sufficient pension/investment income, have not used your home as a piggy bank and don't have huge credit card debts, are you going to be affeced by it?

 

Sure, some folk find themselves in a negative equity position and find it difficult to remortgage, but at least it stops them from stripping even more cash from the value of their homes. They also find it very expensive to transfer their credit card balances to zero interest deals, but in reality these folk were in trouble prior to the recession, they just didn't realise it.

 

I'm by no meams bullet proof and have seen my pension funds and investments go down, but can ride it out on the strength of being virtually debt free. I feel sorry for the youngsters who borrowed 95% or over to get onto the housing ladder only to find themselves paying for something that is now not worth the purchase price. However if their salaries increase commensurate with their career progession they also should be able to ride it out, albeit without expensive luxury purchases.

 

The folk on benefits with no mortgage, investments, pension fund etc; will notice very little difference to the days of boom, because it never boomed for them in the first place. The very wealthy might just end up being wealthy so it will not kill them, it's the folk who are going to lose their jobs through no fault of their own who will be the losers in this man made recession.

 

What if the service/retail sector takes the hit that is predicted? Just think of Sheffield City Centre devoid of Marks and Spencer, Debenhams and Atkinsons, John Lewis would surely consider it's position, we could end up with tumble weed blowing down Fargate.

 

We are told that LIBOR must come down, that banks should start lending to each other and to businesses and that High Street spending should be kick started. Spending will no doubt be done via credit, didn't this help to get us to where we are now?

 

Is there an ecomomist on this forum who can explain matters?

 

I cannot answer your query as I'm no economist but, I agree with all you say. What a well constructed post.

Duffems

[Cyclone 10]

A recession means people being made redundant, so even if currently financially secure it could be a bumpy ride for a lot of people.

[nyala 10]

Yes Nick,you're right,You're not an economist!

Economic storm washing over the U.K.,This is a world wide recession,You live in Germany which will be equally affected,if not worse.

This goverment is in so much debt,not so,I'm not a leftie but Labour goverments always reduce National debt.

Obviously you've over dosed on "The Mail"

[Solomon1 10]

I honestly don't think they have a clue what they are doing, the list of ****-ups is as long as your arm, but the economic storm which is going to wash over the UK in the next couple of years is very, very worrying.

I was reading about the 'photo-shop' MP, James Purnell and he was on about the Job Centres being a 'one-stop' to get the middle classes back into work, he said they could be retrained as driving instructors FFS. Gordon Brown said with all the draft proofing being funded then people could get work doing that. If that's the best they can come up with then the country is well and truly in trouble.

 

what would you do nick?

[nickmunich 10]

http://www.marketoracle.co.uk/Article5512.html This gives quite a good overview of government debt in the UK.

[Mini_Cooper 10]

Theres been a recession 4 years, just its been hidden with easy credit and people buying things they can't actually afford.

 

People for years have been coming to terms with inflation busting increases (ie Council tax) yet, just because its the toffs in London who are suffering, we now have a recession.

 

Realistically, for many people, they never came out of the 90s recession, and for some the 80s.

 

In my opinion, this one is going to be a monster, one like we not seen since the 1930s, god knows what it will take to get things started this time around.

 

The onlys jobs that are relatively secure are government jobs, however as a country we cannot survive without exports and people earning money by working for the government.

[Vanos 10]

Sales at McDonalds are on the up so I guess people are downgrading their eating out habits.

 

Seriously though the OP is bob on, if you have been prudent and even if your business slows the won't be too much hardship. However, there's been jobs cut all over the shop and if you do have savings as such you'll get sod all help ....

[Greybeard 10]

http://www.marketoracle.co.uk/Article5512.html This gives quite a good overview of government debt in the UK.

 

But according to Gordon Brown "Comparing the level of UK debt with that of other nations, the prime minister said IMF figures showed Britain owing 37.6% of GDP, compared to France on 55.5%, Germany on 56.1%, and Japan 94.3%."

 

So we're not as far up the creek as some other major countries.

 

As a saver rather than a borrower I should be worried about falling interest rates but then the pundits are predicting negative inflation for this time next year - perhaps as low as minus 2% so it's swings and roundabouts for me.