cricket1again

Because I'm a numbers person, I just wondered what everyone's thoughts are on the latest US financial fraud, the world's biggest apparently, and if it's going to push the UK over a cliff financially?
If the UK's current national debt is 8 billion but GB is going to borrow another 20 billion, that's approx 66,000 debt per person in the UK.
Australia doesn't have a national debt yet so it can afford to get into debt to fund getting through the slowdown.

It concerns me only because my main reasons for returning to the UK are a) my daughter, and b) my business.

s_j_brown

You are not the only one.

I wish I had currency to move to the UK on the current exchange rate.

Once Labour are gone and a new Conservative government get into control, things will improve, but patience must be had. Tony Blair was riding high on a good economy when he got into power, and they've had no financial problems until this, and I don't think Gordon Brown has a clue.

I believe things will get better.

Simon

cricket1again

I agree. The more I see of how Brown responds with his own body language at the moment, the more reckless and clueless he appears. It is hard to know what to do especially as the UK banks seem so closely allied with the US's recent fraud.

Grayling

In your dreams.

cricket1again

I don't think any politician can sort out the current mess regardless of their party. I think the best way forward is not to even rely on them because they've all contributed to the global financial problem in some way.
Just wonder how many more tips of icebergs are about to start showing.
It's going to be a time and trust process by the looks, no quick fix.

Giantaxe

Can't say I've been impressed by the Conservatives response to the financial crisis either, especially the shadow chancellor. I think you're essentially pissing in the wind if you think all that's needed is a change in government.

Fleaflyfloflum

The thing I am thinking about most is establishing a pension. After hearing all this news today about the huge frauds and the effect it is going to have on pension funds, I am thinking of better places to invest our money.
I keep coming back to property. The problem with this is getting a mortgage in the first place! Then having to wait to build up equity (which i cant see happening for a while in this climate) then buying other properties to build up a portfolio. It wont be easy to do though.


What I find absolutely incredbile is the lack of complete outrage against these fat cats that have screwed the world economy. Sure, everyone is whimpering and moaning about it, but where is the fire? Where is the demand for justice, arrest and exposing of these weasels? I thought the Brits didnt take things lying down?
It all seems very "oh well, what can we do?" sort of attitude.

What the hell were RBS, HSBC, Santanger, and various other supposedly big banks doing investing in this hedge fund scam in America? Where's the accountabilty for the idiots who thought this was a good idea and did not scrupulously investigate the credentials of this venture?
I heard a report last night that this guy responsible did not have his company checked out for over 2yrs and kept accounts on scraps of paper in his desk draw!! WTF?

cricket1again

No one is jumping up and down because somewhere along the line they will all have been involved in the same scam. You wait, there will be more skeletons to emerge yet. One person alone can't have managed such a huge fraud all by himself, he will have had backers.

As for property, my friends in the UK are estate agents. They are almost bankrupt. Seriously, they have nothing left. Thy've even said they will have to rent out their house next year andgo and live in a rabbit hutch.
But.....they did advise me to wait until the end of 2009. That's when the UK property market should have bottomed and there will be some good opportunities. When property prices stabilise, leding and borrowing will become easier.

Fleaflyfloflum

I hope you are right. We wont be in a position to buy until around that time anyway.


I am incensed by all this finance scandal. These people have brought the western world to its knees. We are just very lucky that OH does a job not really affected by it.

cricket1again

Actually the conservatives are calling for action. they want all the rogue bankers jailing. There's also a story about how 1.34 million jobs created in Britain have gone to immigrants which is causing a lot of tension. There is a lot of really inflammatory stuff in the news as the political parties blame and shame each other. There isn't much camaraderie going on or everyone pulling in the same direction. It's an absolute bun fight.
I don't think it's worth going back just yet. It's pretty calm here by comparison and civilised.
I have to wonder about the UK's politicians and how they are handling the current tensions.

Fleaflyfloflum

They should be jailed.

I spend most of my time watching and listening to politics and current affairs as its one of my favourite subjects.
I dont believe the "calm" will last too much longer here in Aus though. I think theres a lot more going wrong than they are owning up to. Time will tell.

babycart

Can you trust the UK government to see us through what will be the worst financial crisis of our lifetimes? The basic fact is that an economy based on consumerism cannot be a sound economy. Countries like Canada, Australia where most expats end have at least have something else to propel their economies, natural resources, & lower populations.

These countries are by no means utopia in all aspects but there is something concerning about the UK and it is this uncertainty which will mean that the UK may not be the best place to be for a while. If you want to remain optimistic then things may improve by 2010, but at this point there are no regular rules anymore. An OECD report found that house prices usually fall for 4 years, but that doesn’t mean that always has to be the case. Housing markets can vary tremendously throughout different areas. House prices in Japan fell for a whole decade before recovering. US house prices have been falling since 2005 and still haven’t stopped.

Banker & the like have always known that they were on the road to Armageddon, but it's not their money they have been gambling, it's been depositors, pension funds, and now tax payers’ monies. The UK government is complicit in this whole mess as even when the dust settles they and all other public servants will have comfortable pension to rely on.

cricket1again

Have to agree. It's certainly the government that's concerning me at the moment. People suggest that australia will have the same problem but it's not starting from a position of staggeringly huge debt while China, although their economy has slowed, their developing infrastructure has not.

dunroving

There's certainly blame to be laid at the foot of government regulators and the banking industry, but for the past several years individuals have been maxing out their credit cards, remortgaging their houses to release 1,000's in equity, and all for what? To bolster their pensions? No, to buy fancy cars, fancy gadgets, fancy clothes, and fancy holidays. The debt culture isn't the only factor leading to today's financial crisis, but when an economy is driven by consumerism, that in turn is financed by personal debt and spiralling house prices, the penny has to drop at some point.

If Australia has a lot less debt than other countries, and you're not craving to return to the UK this very minute, I'd stay put until the dust clears and it's a bit clearer how the UK wll end up economically.

cricket1again

You are right. Personal debt is a huge contributor to the problem. Australia is trying to boost spending, it's just given $1,000 per child per family to spend on Christmas.
As always, if you're not in debt at the start, weathering a financial crisis is easier. I wonder who is going to be paying Britains 28 billion pounds back?