What started the credit crunch etc? - HotUKDeals
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What started the credit crunch etc?

midjet666 Avatar
7y, 11m agoPosted 7 years, 11 months ago
I'm naive and quite thick lol. I'm trying to see where it all begun, but I can't really tell where, and I'm just wondering what started the downfall of all these companies?
No insulting comments towards me please as I'm just trying to learn things!!! (Yes, I know English would be the first thing to learn for me...!)
midjet666 Avatar
7y, 11m agoPosted 7 years, 11 months ago
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#1
All kicked off when the resources like oil etc started getting strangled.

Higher prices = Less money to spend, Harder to pay off loans etc.

No money = Stop buying things

Stop buying things = shop go bust

shops go bust = more expensive to buy more things

So on and so forth. Its a lot more complicated than my post shows, but you get the general idea. A recession was pretty much inevitable sadly, and its gonna be a hard fight out of it.
#2
The banks along with us not spending enough, Plus Oil prices increased which increased cost of production along with other stuff.
#3
greedy corrupt American Bankers
#4
A guy called Morgan Stanley
#5
Thanks so far for your posts, see I thought it was all to do when there were a few stories in the news that people had fiddled banks and other large companies out of millions of pounds/euros etc.
#6
midjet666
Thanks so far for your posts, see I thought it was all to do when there were a few stories in the news that people had fiddled banks and other large companies out of millions of pounds/euros etc.


The banks were a lot to do with it. Because people and businesses werent paying their debts the banks stopped lending and forced premiums up. As soon as that happened - Critical hit to the economy.
#7
Debenhams and Next next??
#8
The greed of the utility companies. Have they dropped their prices? Nope. Petrol companies have though.
#9
The crash in house prices in the USA. Banks there were lending money to lenders with no income they are called NINJA loans- No Income No Job No Assets. A result of this crash banks stopped lending to each other as things got too risky and when they stopped lending there was no freely available credit and the result of that is the credit crunch!

Here's a wiki quote and link Click

A Ninja Loan is a type of subprime loan issued to borrowers with No Income, No Job, (and) no Assets. The phrase was coined by HCL Finance as a name for one of their finance products. They were especially prominent during the United States housing bubble of the 2000s but have gained wider notoriety due to the subprime mortgage crisis in July/August 2007 as a prime example of poor lending practices[1]. The term grew in usage during the 2008 financial crisis as the sub prime mortgage crisis was blamed on such loans. It works on two levels - as an acronym; and allusion to the fact that ninja loans are often defaulted on, with the borrower disappearing like a ninja
#10
brangelina
Debenhams and Next next??


I should imagine most multi-national companies should get through. Dont expect things to get any cheaper though.
banned#11
it is mainly the publics fault but they don't like to admit it....

bush essentially allowed the public to approve their own loan amounts and so people stretched how much they wanted to borrow, same in uk with 110% mortages ect and fixed rates for like 5 yrs ect.

banks took these debts and repackaged them as bonds and sold them to other banks, who then repackaged them again and sold them on... each time making a little cut on top.

lots of people started defaulting and so the bonds ended up worthless but banks didn't know who was losing out the most so stopped lending so freely.... and thid hurts businesses causing them to go bankcrupt.

bottom line is... if the public hadn't got so greedy and tried to get so much credit then the banks would have stayed happy and kept on lending...
#12
crd67
The crash in homes in the USA. Banks there were lending money to lenders with no income they are called NINJA loans- No Income No Job No Assets

Here's a wiki quote and link Click

A Ninja Loan is a type of subprime loan issued to borrowers with No Income, No Job, (and) no Assets. The phrase was coined by HCL Finance as a name for one of their finance products. They were especially prominent during the United States housing bubble of the 2000s but have gained wider notoriety due to the subprime mortgage crisis in July/August 2007 as a prime example of poor lending practices[1]. The term grew in usage during the 2008 financial crisis as the sub prime mortgage crisis was blamed on such loans. It works on two levels - as an acronym; and allusion to the fact that ninja loans are often defaulted on, with the borrower disappearing like a ninja


That's just mental.
#13
Shengis
The greed of the utility companies. Have they dropped their prices? Nope. Petrol companies have though.


Not true.

The utility companies buy in bulk. If they bought a barrel for $100 then they need to make a profit. Fair enough it may be $75 or whatever now but they cant sell for that untill they buy for that.
#14
how come petrol prices down but my taxi fare went up by 30p today??
#15
edit to original post
A result of these NINJA loans crashing the banks stopped lending to each other as things got too risky and when they stopped lending there was no freely available credit and the result of that is the credit crunch!
#16
brangelina
how come petrol prices down but my taxi fare went up by 30p today??


More traffic?
#17
Jo3l
Not true.

The utility companies buy in bulk. If they bought a barrel for $100 then they need to make a profit. Fair enough it may be $75 or whatever now but they cant sell for that untill they buy for that.


Where do you buy a barrel of electricity or gas? Tell me they're not profiteering scum, better yet, show me some proof. The fact is petrol prices HAVE dropped, gas and electricity hasn't.
#18
Shengis
Where do you buy a barrel of electricity or gas? Tell me they're not profiteering scum, better yet, show me some proof. The fact is petrol prices HAVE dropped, gas and electricity hasn't.


You joking? :w00t:

Electricity -> Needs turbines, powered by. FOSSIL FUELS.

Gas -> Needs to be harvested and piped to you. Guess what. FOSSIL FUELS.
#19
alright alright no arguing! I just wondered what had started it all and although I'm still a bit confused, it's not as bad as it was!!
I'm going to bed now as I'm ker-nackered so I'll check back tomorrow and see what else has been said.
Thanks again to all who have contributed xxx and night night xxx
#20
Jo3l
You joking? :w00t:

Electricity -> Needs turbines, powered by. FOSSIL FUELS.

Gas -> Needs to be harvested and piped to you. Guess what. FOSSIL FUELS.


And the raw price of fossil fuels has dropped.... Follow that thought.
#21
tinkerbell28
I think DSG may go, they expanded too quickly into Europe during the good times and have since just made their first loss. I don't think they are competitve enough either.............


would be suprised if they do as they have a lot of customers paying on the never never so they are guaranteed regular payments from people each week ,month or whatever
#22
Shengis
And the raw price of fossil fuels has dropped.... Follow that thought.


BUT THEY CANT FOLLOW YET.

They need to make a profit, until they shift all the oil they paid loads for they can start buying more lower priced oil.

Im sure you'd be delighted when the power companies go bust, better yet have to be bailed out by the government, then force your taxes up.
#23
Jo3l
Im sure you'd be delighted when the power companies go bust, better yet have to be bailed out by the government, then force your taxes up.

Yeah I would. Renationalise the lot:thumbsup:
#24
Shengis
Yeah I would. Renationalise the lot:thumbsup:


You have my vote on that - most are foreign owned and are charging us more than customers in their own countries - look at EDF, EON and N-Power as prime examples.
banned#25
crd67;3952101
The crash in house prices in the USA. Banks there were lending money to lenders with no income they are called NINJA loans- No Income No Job No Assets. A result of this crash banks stopped lending to each other as things got too risky and when they stopped lending there was no freely available credit and the result of that is the credit crunch!

Here's a wiki quote and link Click

A Ninja Loan is a type of subprime loan issued to borrowers with No Income, No Job, (and) no Assets. The phrase was coined by HCL Finance as a name for one of their finance products. They were especially prominent during the United States housing bubble of the 2000s but have gained wider notoriety due to the subprime mortgage crisis in July/August 2007 as a prime example of poor lending practices[1]. The term grew in usage during the 2008 financial crisis as the sub prime mortgage crisis was blamed on such loans. It works on two levels - as an acronym; and allusion to the fact that ninja loans are often defaulted on, with the borrower disappearing like a ninja


+1

Shengis;3952100
The greed of the utility companies. Have they dropped their prices? Nope. Petrol companies have though.


+1

Shengis;3952141
Where do you buy a barrel of electricity or gas? Tell me they're not profiteering scum, better yet, show me some proof. The fact is petrol prices HAVE dropped, gas and electricity hasn't.


+1
#26
tinkerbell28
But that's not being paid to them, the customers are paying back on the never, never to a seperate finance company. DSG get their money in a lup sum from the finance company on completion of the deal.


thought they had their own inhouse finance

i remember when id just turned 18 i went mad and bought a load of stuff from them on never never

come to think of it i dont think i ever paid for it:whistling:
#27
It all started when the 'war' in Iraq and Afghanistan became very costly for all the major contributing forces, especially the USA and UK.

Caused widespread instability across the world, knock on affect to the oil industry, which has a knock on effect on the prices of everything that derives from it, petrol, diesel, plastics etc....

meanwhile over in the finance world, people got nervous because markets became less stable. Stock prices start becoming rocky and then rollercoasting. Large corporate greed results in dodgey practices and increased risk taking....we then step into the realm of consumer debt, heavy lending by banks to consumers/businesses, increasing the banks figures on papers, consumer/businesses gets cash that they cant pay back (banks know this as they are insured so knock on effect to the insurance industry and underwriters of large corporate finance institutions), consumer goes nuts with the cash/credit cards etc ladens themselves up with debt and start to default on their commitments, mortgages etc. Banks struggle to cope with the level of defaulted debt, they hang off for as long as possible and do some more dodgey dealing trying to sell off the debt. One bank finally has to come clean and hold their hands up...in steps government with billions of pounds of the taxpayers money that should be getting spent on the taxpayer improving services, police, schools etc but now less money for that so budgets are cut.

Banks become less stable as they stop lending to each other on a daily basis to cover the short change until the next day, banks start to become in real danger of collapsing....very bad for the economy and public confidence.

Banks start to call in their debts with other companies as they cant/wont/refuse to lend more money. Business start to collapse, people get made redundant, widespread job losses.

and here we are today in the biggest pile of brown smelly stuff we've ever been in for many years. Tail between legs and kiss your **** goodbye scenario......and goodnight vienna baby :w00t:

Happy New Year by the way :w00t:
#28
blame the fat cat million pound bonuses.....
#29
Jackie Chan
Click the links there's nothing racist or hateful, just quotes from washington, martin luther king, jesus, and churchill + further reading:thumbsup:


How the **** can you get a quote from Jesus? LOL

He didnt speak ada English my friend, he spoke Aramaic. :lol:
#30
Wtf???
#31
Shengis
Wtf???


Dont m8, he's in the middle of some psychotic episode and a crusade against the whole world... :lol:
#32
Not an unbiased website Mr Chan - I do hope you don't believe everything you believe you read on the internet!
The Stormfront White Nationalist Community is a white supremacist,[a] neo-Nazi[b] Internet forum that has been described as the Internet's first major hate site,[c] and the first and most popular racist website.
http://en.wikipedia.org/wiki/Stormfront_(website)

PS I think you'll find that Jesus was Jewish!
#33
StevenA2000_uk
Dont m8, he's in the middle of some psychotic episode and a crusade against the whole world... :lol:


Oh, so by his own definition he must be a jew :lol:
#34
Shengis
Oh, so by his own definition he must be a jew :lol:


LOL :lol: Nice one.
#35
lmao everyone knows jesus was black
#36
casparwhite
lmao everyone knows jesus was black


According to the Uncle on Goodness Gracious Me - he was Indian!
#37
Shengis
Oh, so by his own definition he must be a jew :lol:


I am?
**** gone to commit hara kari,
#38
casparwhite
lmao everyone knows jesus was black


Apart from the church ;-)
#39
harri krisna?
#40
Jackie Chan
sorry but it was [SIZE="4"]JEWISH GREED[/SIZE] <--- click click

read more interesting facts here


k bye



crd67
Not an unbiased website Mr Chan - I do hope you don't believe everything you believe you read on the internet!
The Stormfront White Nationalist Community is a white supremacist,[a] neo-Nazi[b] Internet forum that has been described as the Internet's first major hate site,[c] and the first and most popular racist website.
http://en.wikipedia.org/wiki/Stormfront_(website)

PS I think you'll find that Jesus was Jewish!


When all else fails quote WiKi!

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