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financial realities

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Dec. 4th, 2008 | 11:03 pm

Well. I can certainly see that this financial crisis that we are apparently in, which we are regularly told was caused by people getting into unwise debt, can be solve by

(a) fucking what savings I have;
(b) encouraging everyone to borrow even more.

You know, this is usually the point where I would start feeling that I was stupid and didn't understand things, only I don't actually believe that anybody else does either. What I think that I can say is that all of the principles that I have been brought up on - don't spend more than you have, don't make commitments for more than you earn - those were all bollocks. Apparently somebody will bail you out if you do either (even if you should have your house repossessed, you'll be getting protection) because it's more important that people keep cycling Economic Points around the system than anything else.

I've said it before, but I wish I'd taken out as much credit and as many mortgages as I possibly could when I had the chance. I was just not sufficiently cynical.

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Comments {3}

Nina

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from: janinazew
date: Dec. 4th, 2008 11:57 pm (UTC)
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See what Thatcher did to you.

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fool's guinea

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from: foolsguinea
date: Dec. 5th, 2008 09:50 am (UTC)
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I think it comes from a deeply flawed idea of economic health; that higher GDP is always better. Wait, not deeply flawed; flat-out wrong.

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Spending

from: anonymous
date: Dec. 5th, 2008 12:37 pm (UTC)
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No, no, no - that's only if you are a "b"ank/er. If you are a normal person you MIGHT get part of your mortgage postponed for 2 years if you lose your job or get a lower salary if you are made redundant. This simply means that instead of paying back your mortgage over (say) 25 years you pay it back over 27 years. And think on - your mortgage holiday is when interest rates are at 2%, your payback will be when they are (say) 5% or more. Will the banks lose out - not on your life, you actually pay MORE over the lifetime of the mortgage, not less.

You really have to pay attention to REAL economics here, not political economics - they are totally different things!

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