You gotta know when to hold-em (How has the Credit Crunch affected you?)

Member Name: 1st2thebar

Product:	How has the Credit Crunch affected you?
Date:	04/12/08 (325 review reads)
Rating:

Advantages: always big opportunities in a recession

Disadvantages: wheres the cash-cows now

DooYoo Review: dated > 04-12-08

Titled: You gotta know when to hold-em-
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I have found that the Lenders are cracking down hard on borrowers who fall into arrears as they resort to desperate measures to recover bad debts. These are the same corporations that send blank cheques through the post to the poor and vulnerable citizens of the UK all the time. Dangling a carrot in front of the poor is an evil act to do; especially when it is feeding capitalistic greedy 'fat cats' who out to hit their 'inflated' bonuses at any cost to the monetary system; leaving the ever stretched money black-hole to be paid for by the taxpayer. I'm still waiting for an answer from Westminster in how they are going to regulate the greedy banks eye for sucking the life out of our poor impoverish UK citizens. These are the same financial institutions that are too afraid to lend to each other, yet feel it is fine to quicken up house re-possession orders. I've met these leaches and I can tell you they love the kill as much as their 'dementia' bonus system. It is the only, sector that is rewarded by obscene failures. Too over talk about these mongrels will be too good and I can just see their sickly mincing smile on their soggy crumbed blueberry muffin lips.

This week it was Westminster who claimed again that these financial sectors must be lenient on those vulnerable who are indeed feeling the crunch. The lenders get-tough policies; however, fly in the face of new government guidelines on mortgage repossessions and breach the City watchdog's rules on treating customers fairly. The government will have to come up with a dog- eat - dog counter policies in favor of the taxpayer, that will have to force economic movement that would in return stimulate growth. At the moment there are no huge incentives for the financial market sector to actually move in a direction to stimulate growth. Meanwhile they are sitting on-top of their governmental hand-out of taxpayer's billions and being frugal with it; as we know how the financial market is. Once bitten, twice shy. This in my eyes is proof that there are too many like minded people in this profession, and at present it needs a forceful leader to steady the ship and steer towards confidence again. What-ever, that entails I'm not sure; a sloth doesn't change from being pathetic overnight and this sector has as much back-bone as a squid.

I can remember my last Capital One loan letter stating that I could have up to 7,000 GBP; it was only April 2008. It wasn't very long ago when banks and credit card firms were falling over themselves to lend you money. Northern Rock, for example, proudly advertised its "Together" mortgage that allowed you to borrow more than a property was actually worth.

I've found that on more than three occasions my bank has delayed payment from different BAC system merchants; making me decidedly nervous. The amount of time dealing with these problems has been vast; it coincides with the banks eagerness to retain as much money as possible for as long as possible without even a comment to the account holder. Is this likely to continue happening? Believe you me I think the banking service as a whole will drop into freefall. Their tactics for gaining as much from their customers will become epidemic. The banking code will be squandered, just like the FISCAL rules have been by government in the last few months. I've heard through the grape-vine that it won't be the credit crunch that will cause the main financial misery but the apparent US financial 10 Trillion dollar black-hole. That potentially has the making of a financial system collapse. The President- Elect Obama has already enforced a bid to guild a financial package that will dwarf UK's pre-budget spending marathon; which will cost every UK taxpayer 17,000 GBP per head.

I was pleased to hear that the Unite chief is currently forcing his hand to the government planning NHS strikes claiming that NHS workers have had '3' years of below inflation pay rises and many workers are falling on hard-times. The government has been accused in playing crazed gambling games with public money, the chief stated it would be a fraction of the cost that the government has given to banking bail-out; as this is such a huge commodity in UK's public interest; Unite will no doubt force the issue further in the next month; affecting us all in the long-term. The domino chain is set to flow into many sectors that normally isn't affected by economic down-turn.

Northern Rock alias - UK bank Rock LTD is in a sticky place, now that in effect they belong in state control; RBS is now under 60% of state control. The taxpayer has also spent billions bailing out several other banks including Lloyds TSB. The only giant who has come-out okay; barely without breaking a sweat is HSBC; the multi-international bank is the only financial institution that has gained in popularity during this global financial fiasco; but even they are not eating up smaller riskier banks; unlike Spain's Santander; who were practically forced to open their doors to UK banking sectors, from Westminster.

HSBC has revealed that charges on bad debts in the US soared by $700 million to $4.3 billion during the third quarter. The bank also admitted that it was unclear whether there were "further risks to be uncovered" in the financial sector. Hitting my own personal credit crunch long-term as it will most of the UK; we all will feel the cast iron pinch from a failed US financial sector that now seems likely so flawed that even the Bush administration in 2006 were bowing constantly to aggressive lobbying from failing banking institutes that were openly failing and over 18 months ago. The inept Bush team knew even in 2005, they had to face up to ominous signs that the housing market was in jeopardy. Which asks more questions whether there was a cover-up. The FBI claim to state they are still looking into any illegalities; which is as obvious as investigating whether the ice-caps are melting. I expect it will be another unexplained foot-note in history that will be long forgotten.

Personally, I'm all for rewarding hard work and recognized achievements in all areas; but even after a mediocre month the government have fallen short in providing answers in their Pre-budget spending spree. Gordon Brown is no gambler; He is not the high-flying jet-set character named Gekko in the film Wall Street played by Michael Douglas. Brown is sailing in un-chartered waters that will inevitably have an Iranian ship lurking in the distance, and behind that two ship loads of latin pirates dressed in Primark.

It is odd to me that the wonderful credit deals that were on offer just over a year ago is not quite as sweet today as they once were. Surely, this is exactly what the lenders should provide us, now we need it. What the trend appears to be now is to not get new business but to balance the accounts and sting the customers they already have caught in their net of toxic debt discrepancies. I was quite surprised to have a mobile phone representative trying to sell me yet another mobile stating that it will be good to have two mobiles because no doubt my other mobile will ware-out and then you will be thankful for going with this deal; barrel and scraping came to mind, but at least new business is regarded as a good thing in the tele-communication world, banks listen up. Now lenders are throwing in many pressure techniques urgently trying to get in quick before new government bills are introduced. - On this note please read all Terms and Conditions especially periodic terms and Payment Protection Insurances; also check any tracker mortgages as the lender always has a few tricks up their sleeves when it comes to Bank of England base-rate percentages. Eventually the in-name -The Civil Justice Council will in future require lenders to examine all other options before they start repossession action.

One of the most out of touch policies I think the PM has introduced is the 2.5% decrease in VAT. Again relying on other sectors, this time the retailers to pass on the deflated rate to their customers; the decrease is minimal. It certainly won't make much any difference, unless your buying a car by cash very soon. No VAT is included on food so no change there and many of us are so in-grained with brand recognition while shopping in a supermarket just when the auto-pilot kicks-in. It is tough to change a mind-set, especially as our home comforts are compromised. Surprisingly, I needed to be accustomed when Branston Pickle produced another option for smaller chunks, they tasted the same but felt very different. I required two weeks to adjust, and then I was cured, - until next time. Now if custard creams were to be organically modified, a long stretch in a mental unit could be the only option; now that would be a huge strain on the NHS.

It is the same as recycling, once you understand what the process is and get into a mind-set to do this - your cured. Therefore I can see how some people need a big shove to do these acts of supposed good especially if it is environmentally friendly. However, it wont stop the ice-caps melting as the tipping point is now beyond control. The introduction of yet more fossil fuel pits in the UK is beyond shocking, so why are we the UK public having to introduce green issues in our lives when the PM is doing exactly the opposite? A rise of 16% of coal pits have been re-opened in the last five years, because allegedly the UK is endanger of running out of energy, which would be in-practice will be worse than any deep recession and economically damaging beyond irretrievable, enter the Russians; so seeing the penguin species disappearing is the lesser of the evils. - On the other hand where are all the other alternative energies that the energy companies have been claiming they have been sorting out for over 20 years? Over the last 20 years the big 5 energy firms have profited an average of 3 Billion per year, per company. The mass sum amounts to 300 Billion; where has that money gone to? No-one in the UK should be suffering from energy poverty, but over 1.5 Million people are.

I've been against bureaucratic pen-pushers with no substance, as it always appears they are inventing work schedules and procedures, when in return always complex simplicities; this is an epidemic and unfortunately spans over most sectors of government and into massive corporations. It has all got too PC - Politically Correct. There is no proper ideology to guild us through the global economic crisis. The problem is that we all have fitted in to a lifestyle that is in-built by our own government since the early Thatcher years. Economists have always agreed that capitalism will eventually eat itself up. It is fundamentally flawed. It is governed by risk and sadly we all have now got to carry the can. One economic expert actually said that he was surprised capitalism has lasted for as long as it has. I fear that the UK's 'nanny state' policies are filtering through our mindsets and this could develop further whereby our 'own' liberties will be over regulated, unlike the financial institutions that got us in this state in the first place. My life pattern hasn't changed of recent, but when the bitter winter finances bite I will then know how far up the anal passage we are to our adoring fair-weather friend; Uncle Sam.

Summary: The credit crunch - a personal view