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Champion
 
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With regards to this big scary credit crunch, making everything expensive I had an idea.
Why not just write of all debts under say £20000, and ban home repossesions?
while I realise that the low professions may not make as much profit, and will have to use dialogue and non bully boy tactics to help struggling home owners, but franklly IMO they have had things far too good for far too long and its time they where taken down a peg.
And this is the 21st century, why the hell should families be made homeless just because there struggling with bills?
____________________________________As the old robot saying goes "does not compute"
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Heroic Knight
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| erm... because it would send us spiralling into a recession that we would take probaly over a decade to get out of..? any way you do that share pricess in financial institutions would hit the floor wich accounts for at least 2/3 of UK GDP you loose faith in teh financial services and the rest of the stock market dosnt function so no money moves and everything falls apart, it would effectivly multiply the current credit crunch by 100+
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Wag
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| People being idiots and taking on Mortgages they cant afford that helped drive the market up. Theres an element of personal culpability right there.
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Wag
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| Though a shagged stock market does mean these here Government Bonds become more valuable.... Mwa ha ha ha ha ha ha.......
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Champion
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Flannel (4/3/2008)
People being idiots and taking on Mortgages they cant afford that helped drive the market up. Theres an element of personal culpability right there.ah, but what of the recet crack down the government has had to perform on Mortgage brokers helping people to take out mortgages of 6-8 times their annual income, or the ones saying to increase their clients annual wages by £5k a month? Yes, if people cant afford to pay the mortgage, they shoudlnt take one out just and lie to get 'that nice house', but it doesnt help the 'saftey checkers' as it were, arent helping anyone either. hence the increase of repossesions over the last few months.
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Champion
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Well being honest, its the irresponsible and greedy lending of banks and building societies that is responsible for this credit crunch, that and the over use of draconian finance agreements, that customers are stuck into, honestly why they simply cant let people pay for things in installments, such as gym subscriptions and insurances i'll never know.
Not surprisingly other european countries, that posters seem to think so highly off have banned home repossesions, and if really really civil countries have banned finance agreements, or at least none cancellable ones, so you can give a months notice, pay for a months use of product and then no longer be liable for that product.
Also following my recommended steps, will result in a trickle up effect, where people have more free money, are able to spend within their means, meaning as much money in the economy, all it means is that the low proffesions lose a few billion pounds profits.
Not got time to google it but the proofs all out there if you look.
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Prodigal
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| 1. Because only people over 18 are allowed to get into debt, and people over 18 are legally defined as adults and responsible for themselves. Banks and credit card companies are *businesses*, they are out to make a *profit*. They are not running a charity. Yes, they do offer credit far too easily, but that doesnt mean people have to accept the offer. 2. Because as someone else has said, it would trigger a massive recession.
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Prodigal
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If you write off the debts, then many financial institutions don't have enough money (liquidity) to continue their normal activities (especially those of lending money to other people, but in some cases also those of guaranteeing that if you want to take out the savings you deposited with them you can do so), because in many cases they were allowed to use the money they were owed like money they already had.
If businesses can't get loans / can't get access to their money (it would likely be mostly businesses affected because individual customer transactions have more protection) they can't do the useful things they were going to be doing with their money (businesses generally do useful things because it's the best way to get people to pay them for doing things) and they have to cut costs (which generally means making people unemployed / underpaid).
When people's wages / job security goes down, they spend less money, meaning there's even less money available to companies, causing them to cut back on operations even more - a recession.
In short, writing off debts constricts the money supply, and constricting the money supply leads to a recession.
Or so my A-level Economics knowledge tells me, anyway.
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