четверг, 25 октября 2007 г.
Mortgage crisis in England
Another milestone on the journey to the total indebtedness
Who says the mortgage crisis is limited to the distant America limited wrong. In the nearby large EU country Britain, the situation is exactly the same. The Americans tremble because of the fear of an epidemic of forced auctions, the Englishman already experiencing one.
The auctions are forced never been as high as 8 years. In this year are already 14,000 property of the creditor banks has been withdrawn, 30% more than a year ago, as the Council of Mortgage Lenders reported. These are further 125'000 households have been lagging behind with their mortgage payments.
The private bankruptcies are on an unprecedented record high, mainly caused by the high mortgage debt.
The situation is so bad ... and the danger from the plight of homeowners so big ... that the government of the basic rules of the mortgage system will change.
Whether they can enforce it is still open, especially because the British are always happy to have their own house wanted, with flexible mortgages and personal debt. Television programs based on the real estate and debt counseling specialized, are the most popular in the country, because British consumers are the most indebted group within the G7 countries.
"We live in a society where we promote Make the debt and there is a high pressure to each his own four walls to acquire what for some was a good investment," says Frances Walker from the Consumer Credit Counseling Service, a debt counseling in London.
For others, though, it is a nightmare because the interest burden greatly increased.
Only 5% of British property buyers take a fixed-rate mortgage. But the Bank of England has the interest in record height driven five times in the last 12 months to 5.75%, the highest figure since 2001. And it could be even worse. The central bank has indicated it we have an increase this year. Moreover, inflation in the other important goods, such as food, electricity, gas, gasoline ... the British Home owners will from all sides eingequetscht.
Unlike America, there is a small ray of hope, because real estate prices are still rising, although they have tripled since 1997.
As long as the prices rise, the owners in distress to sell the houses and using the money to repay mortgages ... in theory. In reality, but it takes a sale several months, and until then is a forced auction to the house because the air.
Owning your own house is in the mentality of the British-rooted that most prefer to buy in higher debt than to rent apartments, even if they do not even afford. (IHT)
For the first time, the British private debt, more than the British GDP
The British have piled up so much debt that the total sum is greater than the total value generated by the country, as a new study shows. The financial advisers Grant Thornton predicts that the gross domestic product this year, Ł 1:33 trillion will reach less than Ł 1:35 trillion in debt from mortgages and personal loans with June.
These symbolic overhaul is the first time that the 60 million inhabitants of the country's banks owe more than the value of everything every office and every factory produces in the country. It is a warning signal for the debt of the people are totally out of control and they have the "financial cliff" triggers. The boom in the homes market is the main reason for the debt.
Grant Thornton, this debt amount to the "buy now, pay later" mentality and warns that an increase in interest rates a great burden to families and individuals will bring. "Fortunately, the majority of debt covered by collateral and can be repaid over a number of years, otherwise we would be technically bankrupt" says economist Stephen Gifford. (Independent)
Comment: This report on the situation in Britain Gross proves my statement in the article which I "Who benefits from the crash" made.
"The crash of the financial market is an asset transfer from the poor and the middle class to the ruling elite. So an asset redeployment happened not so easy, it is also not the result of incompetence and lack of foresight. Quite the contrary, it is made aware and well planned. In the center of the asset transfer is a criminal corruption at the highest level of economic and political system. "
The reduction, and then increase in interest rates is not a natural phenomenon, or higher power of God and it is certainly not the game of "market forces", but a conscious and gewolltes, by a small group of elite financial decision.
This handful of leaders, bankers and company bosses decide on round table, with the so-called "Bank Board meetings or in a glass of whiskey and a thick cigar in the men's club, the fate of millions of people. You alone decide whether the people by "cheap money" angeheizten consumption apparently goes well, or whether an interest rate increase by hundreds of thousands of their roof over their heads and lose on the road to fly, whether they work and have something to eat, or whether they are unemployed and starve, and even whether they live or die. This game will be repeated every few decades.
The financial elite behaves exactly like the drug mafia. First, with free samples or cheap fabric angefixed and if we depend on hoes and is addictive, the price increases and they make the big coal. Then it is on the drug and can not be more different. The people who approve the loans have to switch on, sit now in a debt trap and no longer come out. Both groups are all gangsters.
Now, of course, what the financial system's defense and the capitalist brainwashed are saying, well your own fault, no one is forcing people to raise loans and about their living conditions. This is of course a shameless justification, because how can we resist the consumption, if you by massive advertising, clever marketing, constant bombardment by the media for buying products is animated, with money to a nachgeschmissen? Who can to these temptations say no?
The whole is a abgekartetes game with the intention of the people to poverty, to enslave and always under control. They will and may never get out of Scheisse. Between them there through the illusion of relative prosperity to them even more with the head reinzudrücken.
I repeat my call: "There is only one solution which is sustainable, the privilege of the money supply to determine money out of nowhere to create interest and to require the banks must be removed. The perverse system whereby debt is equal to mean money and the interest versklavende system must be abolished. Then, the constraints of increasingly stopped and we can in symbiosis with our planet and to live in peace with each other. "