7 Replies to “Credit crunch”

  1. I know this might sound a bit Heroes (or Bill and Ted)… but we are borrowing from future “us”.
    It’s the credit culture at the extreme… and there was I hoping for the dawn of the new socialist utopia.

  2. Miz,
    Thanks for an answer but I still don’t get it. If you could really do this then I might tap the 2017 me for the money for a new kayak?
    Or is that we haven’t ‘really’ borrowed it, it just exists as a spend we don’t have against theoretical assets?
    I should have studied economics!????!!
    On a related note: The banks were given vast amounts of our money which they are just sitting on. Won’t the shops just do the same with the VAT difference? (I’m concerned here that Mars Bars may not be 1.1p cheaper on Monday after all)

  3. Don’t you think there is something of an issue with a government that says ‘we will reduce VAT so go and spend !’ as a response to a credit crisis caused by banks overextending themselves ?

  4. Stu,
    I’m weirded out by the whole thing. I’d always thought that recessions came along as a kind of re-balance because the level of economic growth was unsustainable. The idea of spending your way out doesn’t fully make sense to me.
    Gambling SO much money on one particular economic theory is kind of scary. I’m more concerned though about what negative impact Western policies will have on the rest of the world

  5. Agreed – it seems like saying ‘go spend – your country needs you’ or ‘be selfish, you know it makes sense’. And make no mistake it is a gamble.

  6. We are borrowing from cash-rich countries, like China and Saudi Arabia, that don’t have a national debt. The kind of countries that we might like to exert influence over, or possibly fight a war against – except that we can’t, because they own all our assets.

  7. I have money in the bank as a depositor, yet they need more of my money as a taxpayer to keep my deposit safe. I am being encouraged to go spend more money but I do not have any because I spend it all on fuel which is also taxed and those prices are not being reduced. Somewhere along the lines things do not seem right to me! Am with you Ian…..just reduce the cost of a MARS bar and all will be well with the world!

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