Nobody learnt from 2008
Discussion
It seems that few people learnt from the global financial crisis and built up some savings to give them a financial cushion in case the s
t hit the fan again.
Will people learn this time? Somehow I doubt it.
Or perhaps they are expecting the government to bail them out again like they did with ensuring interest rates stayed low.
t hit the fan again. Will people learn this time? Somehow I doubt it.
Or perhaps they are expecting the government to bail them out again like they did with ensuring interest rates stayed low.
Many people are in jobs that pay little and have high rent/mortgages thanks to stupid house prices. They can not save... They live month to month, pay day to pay day
It is not whether or not they learn, they simply do not have sufficient money coming in to live and pay the bills let alone save on top.
It is not whether or not they learn, they simply do not have sufficient money coming in to live and pay the bills let alone save on top.
Few people learnt because few people felt real consequences. The Govt is going all out to prevent them doing so now. In 2008 the Govt were probably right; this time, I'm not so sure. The level of debt that the Govts current pledges will involve will hobble our economy for a generation. It will also, I very much fear, shift our national mentality ever further from small Govt and self determination and create more state dependency.
The Govt has stepped in to control people's movement & association, to soft nationalise every private sector business in the UK and to place the large majority of the population into benefits dependency and no one is calling this all out as deeply controversial and profoundly concerning
The Govt has stepped in to control people's movement & association, to soft nationalise every private sector business in the UK and to place the large majority of the population into benefits dependency and no one is calling this all out as deeply controversial and profoundly concerning
I learnt alot after having my deposit wiped out on my house in the 2008 crash. All debt apart from mortgage has gone. Granted I am earning more now but my spending on nights out and buying high priced items is no where near the amount of my younger years.
This seems to have gone full circle on me. I purchased my house in 2007 and now my house is on the market to sell to buy another property. To say im feeling deja vu is an understatement.
This seems to have gone full circle on me. I purchased my house in 2007 and now my house is on the market to sell to buy another property. To say im feeling deja vu is an understatement.
As someone who was just starting my career in 2007/2008 I remember 08/09 with very bad memories.
Hardly any jobs. Pay cuts. What jobs there were were really poorly paid. Friends losing their jobs, realising the flat they purchased 2 years before wasn't a great idea.
I've been deleveraging for the past 8 years. I know a lot of my friends laugh at me because I drive a cheap car, live in a stabby(but in my view interesting and cool) bit of London, and don't have an investment portfolio or a nutmeg account.
The one that used to laugh the most (he is a good mate) is now crying over the state of nutmeg, is crying over the fact he fixed his enormous mortgage at exactly the wrong time, and is crying most of all over his investment portfolio.
My house will be paid off next year and I won't owe a penny to anyone. It's hardly a mansion but there is a lot to be said about not owing anyone anything.
Hope it all works out for everyone anyway. Some tough months ahead for a lot of people.
Hardly any jobs. Pay cuts. What jobs there were were really poorly paid. Friends losing their jobs, realising the flat they purchased 2 years before wasn't a great idea.
I've been deleveraging for the past 8 years. I know a lot of my friends laugh at me because I drive a cheap car, live in a stabby(but in my view interesting and cool) bit of London, and don't have an investment portfolio or a nutmeg account.
The one that used to laugh the most (he is a good mate) is now crying over the state of nutmeg, is crying over the fact he fixed his enormous mortgage at exactly the wrong time, and is crying most of all over his investment portfolio.
My house will be paid off next year and I won't owe a penny to anyone. It's hardly a mansion but there is a lot to be said about not owing anyone anything.
Hope it all works out for everyone anyway. Some tough months ahead for a lot of people.
I 8 a 4RE said:
Chuffedmonkey said:
...my deposit wiped out on my house in the 2008 crash.
I purchased my house in 2007
These two items do not add up. I purchased my house in 2007
How can a deposit be wiped out in 2008 when a house was purchased in 2007?
EDIT: Should have refreshed before posting as it's already been covered!
Whistle said:
After 2008 I started to save and sort of follow the FIRE websites.
Yes we spend but never more we can afford to spend, we have no debt and no mortgage.
Sitting here quit smug with just about enough to retire at 49.
What was the average house price compared to average average yearly earnings when you started?Yes we spend but never more we can afford to spend, we have no debt and no mortgage.
Sitting here quit smug with just about enough to retire at 49.
I don't know how anyone earning the average wage of, what, £30k? currently is supposed to be able to get on the housing ladder and mortgage/afford a house when the average price is £252k.
Perhaps house prices will take a substantial hit this year if large numbers of people start defaulting on their payments after losing their job, and everyone else simply stops moving house because the future is so uncertain.
Edited by RSTurboPaul on Saturday 21st March 20:56
There is a big difference. The government is shutting down the economy on purpose. If the government effectively takes your job from you they have a moral duty to see you right. Otherwise what is the point of paying tax and being a good citizen. We may as well say no screw you old people and medically u fit people I’m healthy,....didn’t you learn to look after your body so when you get I’ll you won’t die. See it’s callous, but it’s effectively what you lot are saying to the hard working and not well paid people who don’t have great savings and need a monthly income.
Rather than talk about people, did companies learn from 2008? The banks suffered most in 2008 and although they have not learned to curb their greed they were forced to keep more money for a bad day, other companies did not. Trump did a massive tax cut for US companies and rather than putting profits away for a rainy day instead spent a lot on the shareholders. Now they want a bailout.
Maybe instead of blaming people that can’t save you should take a look at the reasons they can’t save?
Employers exploiting them though low wages, then being exploited by the prudent middle class BTL land lords hoovering up all the houses they might have been able to buy to rent it to them instead in a “I’m alright jack” situation.
Employers exploiting them though low wages, then being exploited by the prudent middle class BTL land lords hoovering up all the houses they might have been able to buy to rent it to them instead in a “I’m alright jack” situation.
DonkeyApple said:
they fall into several camps, those who invested wisely and benefitted enormously from the QE asset inflation, those who just went on a shopping binge and have fked themselves and only have themselves to blame and those who hurled their money at blatantly obvious frauds because they were greedy.
It's sad we live in a world where only those that worked out how to drink from the tap of QE got first dibs from government induced asset inflation.ked themselves and only have themselves to blame and those who hurled their money at blatantly obvious frauds because they were greedy. If we didn't allow incompetent but well meaning technocrats twiddle the monetary and fiscal dials in an increasing spiral of crazy experimentation, people would not have to choose between these lesser evils.
What we really need for a new generation is a better form of money that experts of whatever political persuasion cannot mess with. One that simply encourages saving, not immediate gratification on the never never or punting on the stock markets.
Why should a plumber ever need to know whether to invest in Unilever, gilts or emerging markets in order to keep his family financially secure?
Behemoth said:
What we really need for a new generation is a better form of money that experts of whatever political persuasion cannot mess with. One that simply encourages saving, not immediate gratification on the never never or punting on the stock markets.
How on earth do you begin to unravel the housing bubble without causing mass uproar?Nickbrapp said:
Maybe instead of blaming people that can’t save you should take a look at the reasons they can’t save?
Employers exploiting them though low wages, then being exploited by the prudent middle class BTL land lords hoovering up all the houses they might have been able to buy to rent it to them instead in a “I’m alright jack” situation.
Employers have not exploited workers as average real wages (after inflation) are above their pre-financial crisis level.Employers exploiting them though low wages, then being exploited by the prudent middle class BTL land lords hoovering up all the houses they might have been able to buy to rent it to them instead in a “I’m alright jack” situation.
BTL landlords have not exploited anyone. Those who were/are not able to buy a house simply did/don't have the common sense to save for a deposit and instead spent their money on shiny objects, lifestyles they could not afford and got further into debt. Mortgages have never been so cheap.
Yes, you have cases of exploitation in both of the above, but these are minority issues.
I have great empathy for those stuck on zero hour contracts and those who are in debt for no reason other than survival, but not for those who have acted fecklessly.
The feckless are often the same people who moan and blame others for themselves not being able to do what the majority of people manage(d) to do (by being prudent).
Virtually all of my employees bought their own homes in the twenties and have pension and ISA savings. They also manage to enjoy nice holidays and cars. It is not actually that difficult if you live within your means (with the exception of the people I highlighted above, of course).
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