Reply to: What is YOUR definition of Credit Crunch?

[The Master]

A Good and Perceptive move, Oh Evil One...

You're much better than Alan Rickman anyway...

Too right. He's a mere amateur in the evil genius stakes.

[The Master]

Agreed. When's the movie out? Who'll play the 'evil' banker? Alan Rickman?

I'm diversifying.

[Clippy]

It's when banks create money from nothing by lending and then selling the debt onwards in structured products to other banks and ratings agencies are in on it as well, giving such piles of poop AAA ratings and the whole process is repeated until every bank in the world is effectively bankrupt on paper and then the government steps in a settles all the bills with taxpayers money, so the winners are the bankers with their billion £ bonuses and the taxpayer is the loser bailing out the banks for no reason other than the whole process can start again.

HTH

This is an excellent synopsis.

Agreed. When's the movie out? Who'll play the 'evil' banker? Alan Rickman?

[Bagpuss]

The credit crunch is defined as the time when the West first became the East's Biatch

HTH

[Sockpuppet]

No bench for me though

Neither for me and I still get contractor rates. Boomed.

HTH.

[bobhope]

You forgot to mention about the banks "doing things that in most industries, would land you in jail for a significant period of time"

[milanbenes]

seconded


Milan.

[NoddY]

It's when banks create money from nothing by lending and then selling the debt onwards in structured products to other banks and ratings agencies are in on it as well, giving such piles of poop AAA ratings and the whole process is repeated until every bank in the world is effectively bankrupt on paper and then the government steps in a settles all the bills with taxpayers money, so the winners are the bankers with their billion £ bonuses and the taxpayer is the loser bailing out the banks for no reason other than the whole process can start again.

HTH

This is an excellent synopsis.

[DimPrawn]

It's when banks create money from nothing by lending and then selling the debt onwards in structured products to other banks and ratings agencies are in on it as well, giving such piles of poop AAA ratings and the whole process is repeated until every bank in the world is effectively bankrupt on paper and then the government steps in a settles all the bills with taxpayers money, so the winners are the bankers with their billion £ bonuses and the taxpayer is the loser bailing out the banks for no reason other than the whole process can start again.

HTH

[Cowboy Bob]

It's when the butler needs a pay rise to pay his mortgage...

[Jog On]

A term banded about in the news, as if we should all know what the words mean.

As the title says, what is your definition?

When you apply for a new credit card online and on the last stage your web browser crashes and gives you a message saying “There was a problem with your application please either try again or apply over the phone”.

So you fill in the form again and the same thing happens again.

About a week later you receive 2 new cards in the post – 2 different accounts with 2 different limits. You phone them up to let them know and they say “Ok – you’ve got 2 accounts then, have fun and why not treat yourself to something nice – go on you deserve it!”

Yes this has just happened to me – I only applied to be a rate tart, I was refused a current account about 5 months ago…

That’s my experience of the credit crunch so far…

[Chantho]

I aspired to the new Mondeo.

<<canned laughter>>

Why not aspire to something half-decent? This sort of statement is self-flagellatory masochism (at best).

So what's wrong with a Mondeo, you ask? Well, like many current cars (including A3's and Passats) the windows are too small which makes them look tulipe IMO

[chris79]

All that has happened is the Banks have had a few problems, people have got worried, stocks have fallen a bit, and as such lenders have tightened up their belts (as they should have done long ago anyway).

Everyone knows that Banks and lenders have been throwing money at people for the last 5-6 years and people have been borrowing, borrowing, borrowing taking advantage of low interest rates etc. Suddenly industry has woke up to the fact interest rates may not always be low (to combat inflation), and through fear or risk management they have closed the doors on unlimited borrowing. The cost of energy and food is up way beyond standard inflation levels, the cost of living is getting higher, people can't borrow or subsidise their living anymore through borrowing, and suddenly it's a crisis.

All this bollocks about the housing market, the only people it will affect are those who bought as an investment to generate money such as BTL. Average home owners (such as me) are not going to be affected in the long term, at the end of the day I need a house to live in, if my house devalues, then so does every other house, so if I do ever choose to move I'll sell my house for less and buy a new one for less. The level of debt I signed up for was one I could realistically manage at the time, and that is not going to change (unless interest rates go stupidly high, unlikely). I'll still be living in a house in 10yrs time, 20yrs time, 30yrs time, during this I'm sure the economy will have an upturn and any money I lose on paper over the next 1-3-5 years during this 'credit crunch', I will no doubt make back in the long term 10+ years.

My house could be worth a million pounds, but it wouldn't make me rich, I still need to live in it, equally if its worth a few thousand pounds it makes no difference to my situation.

If people had not lived unrealistically beyond their means, or spent tomorrow's money on the gamble interest rates were going to stay at 4% forever, we wouldn't be in this position. The lenders are as much to blame for all this, and the Government is to blame for not putting in measures to control unrealistic lending.

[FiveTimes]

No bench for me though

and no redundancy payment either if you get booted out in 6 months

[Wilmslow]

Wilmslooooooooooooooooooooooooooooooow


credit crunch is when mondeo-man like you has problems getting credit innit

Milan.

I aspired to the new Mondeo.

I ended up with the last of the old Focus......

And going permie

With the alledged stability for the credit crunch, whatever that may be.

No bench for me though