I agree that the banks and the government must share the responsibility but aren’t individuals to blame too?
Yes, it works both ways. People aren't babies (apparently) so they ought to know they cannot afford something, but banks need to play their part too. I don't know if the government needs to be a bit more stern with them, but this might be impractical, I don't know.
I got a letter from my bank today, saying that since times are tough, I can get another credit card with no interest to pay until October! Erm, yeah that's really the best thing to do right now isn't it!
I got a letter from my bank today, saying that since times are tough, I can get another credit card with no interest to pay until October! Erm, yeah that's really the best thing to do right now isn't it!
I agree that the banks and the government must share the responsibility but aren’t individuals to blame too?
Yes, it works both ways. People aren't babies (apparently) so they ought to know they cannot afford something, but banks need to play their part too. I don't know if the government needs to be a bit more stern with them, but this might be impractical, I don't know.
So true. Although there obviously needs to be an amount of responsibility on the part of the individual, you can't have irresponsible borrowing without irresponsible lending. It's physically impossible.
The individual can't be irresponsible without the banks being irresponsible first.
Phoenix wrote:
I got a letter from my bank today, saying that since times are tough, I can get another credit card with no interest to pay until October! Erm, yeah that's really the best thing to do right now isn't it!
You can't live forever on credit, oil is going to run out, food was too cheap, and house prices too high.
Spot on Jimmie.
We have to remember it was the banks "fault" that house prices were too high and credit was easily available. They and the government allowed the party to go on and on for far too long.
Now its time for the long, long hangover. Its not a myth, its real.
I agree that the banks and the government must share the responsibility but aren’t individuals to blame too? Banks don’t force people to borrow money or increase their credit card facilities. People seem to be quite happy to snap it all up when times are good but then will suddenly turn and blame the institutions when the bad times come along. At the end of the day we are usually solely responsible for our hangovers.
Yeah individuals do carry some blame.
However, if banks werent willing to borrow so many multiples of salary to absolutely anybody, then the house prices wouldnt be the stupid levels that they are. Look up Fractional Reserve Banking and Securitisation if you get 5 mins. House prices are dropping now from their stupidly inflated prices. My personal bet is, they will drop to what traditionally they should be, 3 x average salary. The banks milked it when they could, and banks were telling people, yeah buy another place and rent it out, we will give you the money you CAN afford it.
I went into my overdraft last month as well because I spent more than I had
.
err no Jimmy, I would have had the money if the company I work for had done a payment run earlier in the month like normal, rather than waiting until the end of the month after I'd paid my expenses credit card off.
Haven't read all of this thread but definately some things are increased in price due to speculation.
The price of copper keeps increasing but, as far as I'm aware, there is always ex-stock of copper. I think this is the same as oil. No real problems with capacity just markets speculating which falsly makes the cost rise.
All this speculation is hitting the consumer, but putting profits in the money markets.
This is my, very basic!, understanding of the situation.
