It would be ridiculous for me to say that worldwide economies aren't going through the mill at the moment, but after a discussion with a couple of people down the pub we actually found out that we weren't spending that much less at the moment and that the media created "credit crunch" isn't biting as much as we'd be led to believe.
So I guess the question to you is - are you spending less? Are you cutting back? Are you fearful to spend money on anything other than vital bills? Or have you always led a fairly low maintenance lifestyle so you never spent that much in the first place?
Yes I know that's many questions but all around the same theme.
Also how are things within your workplace - how many redundancies, cutbacks or generally unpopular decisions have been put down to "the credit crunch"?
Financial "crisis"
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Gavin Scott
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I'm currently working in financial services, and there's no doubt that the volatility in the stock market, coupled with media-fuelled uncertainty is having an impact.
How bad it gets remains to be seen, but our advisers aren't panicking by any means. The problem for the failing banks is largely down to risky investments, and not spreading their risk across a broad range of asset classes and geographical locations.
There's no doubt that the cost of living is increasing - and I'm making economies with food as well as looking to have gas heating fitted ahead of winter as electric costs are through the roof.
"Mums (and less choosy gay men) go to Iceland".
How bad it gets remains to be seen, but our advisers aren't panicking by any means. The problem for the failing banks is largely down to risky investments, and not spreading their risk across a broad range of asset classes and geographical locations.
There's no doubt that the cost of living is increasing - and I'm making economies with food as well as looking to have gas heating fitted ahead of winter as electric costs are through the roof.
"Mums (and less choosy gay men) go to Iceland".
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all new Phil
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You know I'm very much inclined to agree James. I can't help but wonder how much damage was done with the initial reporting about Northern Rock - it all seemed to spiral from that in this country and brought about this "panic" mentality.
One of the biggest effects is how much more difficult it is to get credit for anything at the moment - I've got a really good credit score yet I was declined a loan not long back. Is this *such* a bad thing though? If it weans people off buying things on the never-never, then it will be beneficial in the long term for consumers.
As for business - well the company I work for has had no problems and doing better than forecasted. Bearing in mind the forecasts were made last year before any of this started, I think that's a pretty encouraging sign.
One of the biggest effects is how much more difficult it is to get credit for anything at the moment - I've got a really good credit score yet I was declined a loan not long back. Is this *such* a bad thing though? If it weans people off buying things on the never-never, then it will be beneficial in the long term for consumers.
As for business - well the company I work for has had no problems and doing better than forecasted. Bearing in mind the forecasts were made last year before any of this started, I think that's a pretty encouraging sign.
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Gavin Scott
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For whatever reason (I think because I have never had credit in the past) I am almost universally refused credit. Even an overdraft.
Whilst it is annoying, its certainly a less stressful existence for me. I have no debt anywhere (apart from the remnants of a Student Loan). I've been told that if I take out a store card here and there and pay it off immediately I will get more points on this "score".
I tried that in Burtons and was declined - so I shan't bother any more.
Whilst it is annoying, its certainly a less stressful existence for me. I have no debt anywhere (apart from the remnants of a Student Loan). I've been told that if I take out a store card here and there and pay it off immediately I will get more points on this "score".
I tried that in Burtons and was declined - so I shan't bother any more.
What happened with Northern Rock was undoubtedly massive and got the coverage it deserved but certainly the reporting of other economic troubles have been beefed up. At the end of the day - bad news sells papers and it's one of the easiest stories to see a box saying "How does this affect YOU?" and of course as more people begin to panic it tends to generate more news again.
I've just finished in my job (my temporary contract wasn't renewed for reasons other than finance) but the Chief Executive company admitted he didn't want to make anyone redundant but would look hard at each and every person who left the company and whether they needed replacing. Natural wastage if you were.
In my job though I spoke to many business leaders who weren't just upbeat about their finances - but had figures to prove them and like as Phil says many companies are meeting their targets. I guess it ultimately does depend on the business though - we all need to eat but we don't necessarily need to go and buy a new Jag every week.
It's important not to underplay the uncertainty in the global markets though - look at the events of today and Germany's guarantee to savers that never was - it hasn't stopped other countries moving to protect their savers. It's had a knock on effect where if Germany would have made the pledge a firm financial one, then it would have forced us to do the same.
I think as Gavin says - leading a life with no credit cards isn't so much of a bad thing and certainly are the ones with healthier finances at the moment. And also it's important to follow the lead of someone like Gav who of course is making small cutbacks in a few areas rather than just suddenly deciding to ditch his internet connection to save him a few quid a month. Get down to Aldi - it's great these days!
I've just finished in my job (my temporary contract wasn't renewed for reasons other than finance) but the Chief Executive company admitted he didn't want to make anyone redundant but would look hard at each and every person who left the company and whether they needed replacing. Natural wastage if you were.
In my job though I spoke to many business leaders who weren't just upbeat about their finances - but had figures to prove them and like as Phil says many companies are meeting their targets. I guess it ultimately does depend on the business though - we all need to eat but we don't necessarily need to go and buy a new Jag every week.
It's important not to underplay the uncertainty in the global markets though - look at the events of today and Germany's guarantee to savers that never was - it hasn't stopped other countries moving to protect their savers. It's had a knock on effect where if Germany would have made the pledge a firm financial one, then it would have forced us to do the same.
I think as Gavin says - leading a life with no credit cards isn't so much of a bad thing and certainly are the ones with healthier finances at the moment. And also it's important to follow the lead of someone like Gav who of course is making small cutbacks in a few areas rather than just suddenly deciding to ditch his internet connection to save him a few quid a month. Get down to Aldi - it's great these days!
Good Lord!
I was considering this last weekend while sitting in Piccadilly Gardens in Manchester. Saturday afternoon and the shops and streets were filled with shoppers. There certainly didn't seem to be a shortage of shoppers... but then I noticed that the most popular shops were Primark, TK Maxx and H&M. All "cheap" shops.
I don't necessarily think the coverage is overblown. This is having a major effect in financial markets. When was the last time you saw financial institutions being nationalised - Northern Rock, Bradford & Bingley in the UK, Fortis in Europe, Fannie Mae and Freddie Mac in the US? This isn't because politicians are bored - it's because banks are in a precarious position at the moment. That might seem esoteric to the daily lives of most people - in part, that's what governments have been trying to achieve with their interventions - but ultimately this all has a very tangible impact on the real economy.
If banks' access to funds is restricted - and it is, because banks are less willing to lend to each other in the current climate - then that in turns restricts the amount of money they are prepared to lend to their customers. Which in turn restricts their ability to go out and buy a home, or a car, or get a credit card. That affects consumer spending. It also affects the restricts the ability of businesses to run their affairs. Many operations are reliant on credit to some degree in order to smooth out cycles in their cash flow - they don't always get paid at the time their bills come due. If they are unable to get money from banks, their businesses are liable to close.
The UK, like many countries at the moment, looks set to enter recession. That doesn't mean every single person will be hit. For many, life goes on as normal. If you still have a job, a home, whatever else, then you probably won't change your behaviour too much - maybe save a little bit more if you're concerned about being retrenched. But if you lose your job, it becomes that much harder for you to find a new one during a downturn - there are less jobs on offer, because employers are less willing to hire. The recession does have a very real impact on those people. Even if we don't feel it ourselves - and I hope none of us do - we still should be mindful of those effects.
If banks' access to funds is restricted - and it is, because banks are less willing to lend to each other in the current climate - then that in turns restricts the amount of money they are prepared to lend to their customers. Which in turn restricts their ability to go out and buy a home, or a car, or get a credit card. That affects consumer spending. It also affects the restricts the ability of businesses to run their affairs. Many operations are reliant on credit to some degree in order to smooth out cycles in their cash flow - they don't always get paid at the time their bills come due. If they are unable to get money from banks, their businesses are liable to close.
The UK, like many countries at the moment, looks set to enter recession. That doesn't mean every single person will be hit. For many, life goes on as normal. If you still have a job, a home, whatever else, then you probably won't change your behaviour too much - maybe save a little bit more if you're concerned about being retrenched. But if you lose your job, it becomes that much harder for you to find a new one during a downturn - there are less jobs on offer, because employers are less willing to hire. The recession does have a very real impact on those people. Even if we don't feel it ourselves - and I hope none of us do - we still should be mindful of those effects.
The UK is certainly about to enter a recession, thanks to excessive taxing, poor economic management and mistrust in figures of authority. But the meedja also play a very important part of all of this. Like him or not, I think Charlie Brooker got the story about right in his Screenwipe programme - "BANKS IN CRISIS" sells more papers than "BE A BIT MORE CAREFUL". Ironically, customers at Northern Rock wayback at the beginning of the year did exactly what they shouldn't have done - they took their money out, majorly weakening the bank's position and making the whole situation even worse.
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Lorns
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I've been shopping in Lidl more often. And i've discovered that their Crusti croc crisps are a bit nice. The cheese and onion ones are wretched. Next time i'll get the smoky bacon and chicken multi pack. Waaay cheaper than walkers.
And i bought Typhoo tea for the first time ever. £1.57 for 48 on a BOGOF. instead of my usual PG.
I'm smoking less, but that could be to do with those ghastly pics they are now putting on packs( i must dig out my cigarette case).
I've always been a tight arse over the central heating.I rarely put it on, even in winter. I use the immersion heater for hot water.
So i'm quite prepared for the depression!
And i bought Typhoo tea for the first time ever. £1.57 for 48 on a BOGOF. instead of my usual PG.
I'm smoking less, but that could be to do with those ghastly pics they are now putting on packs( i must dig out my cigarette case).
I've always been a tight arse over the central heating.I rarely put it on, even in winter. I use the immersion heater for hot water.
So i'm quite prepared for the depression!
Mental anxiety, Mental breakdowns, Menstrual cramps, Menopause... Did you ever notice how all our problems begin with Men?
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Lorns
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I only put it on for about an hour a day. It gives me enough hot water far a bath, shower and washing up. Not sure how the price compares or the eco thingy. It does me alright and i'm on those prepayment meters Hssspsst!! I would switch but OFGEM are sniffing around now.
Oh and the only gas i use is for the gas Hob.
Oh and the only gas i use is for the gas Hob.
Mental anxiety, Mental breakdowns, Menstrual cramps, Menopause... Did you ever notice how all our problems begin with Men?