WHAT cREDIT cRUNCH?

[cathidaw]

I thought we were crunching credit or something like that.
I keep reading in the papers and seeing on tv about the people who have been queueing for hours outside the farce which is now Woolies (and other shops which have everlasting 'sales' ) and the shops in question half empty of goods.
What are these 'things' that people desperately need. Do they really need them or is it because they are cheap.
I read in my Sunday paper that people are withdrawing a lot money from their banks to buy up these 'things' always excusing themselves that they are 'cutting down'by buying them.
Our government is not setting a good example by trying to spend it's way out of disaster with our money.

I went into Tesco late--very late- one night. Hardly any customers there , but truckloads of 'things' being moved about. Iwondered who bought it and if no-one did, where it all went after Christmas.
I asked one elderly truck pusher what was in the mountain of boxes on his truck. "Couldn't tell you my duck but if its anything like most of the stuff we've had in lately, it will all end up at next summer's car boot sales ."
He said it was all Chinese trash.

[Will]

I'm highly cynical about consumerism in general, so I'm fully with you on this one Cathi. It's always seemed wrong to me on some level, that our society is completely dependant on us buying lots of things (many of which we don't need) and borrowing money to get these things.

As someone who only has savings and no house, it boils my blood that the Government is so quick to help out the borrowers and the homeowners. But has never lifted a finger for those who save money, (in fact they are now being severely punished), or people who can't afford their own home.

As someone who doesn't even have a credit card, I am of no use to the banks at all. I couldn't get a decent mortgage before the crash, because I had no history of paying off debts, because I'd never been in debt! Now the government is heavily re-enforcing this attitude, by helping the banks continue to lend money. It seems wrong that if people stopped spending beyond their means, this society would collapse.

Speaking of China, I believe we're not even seeing a credit crunch. I believe we're seeing the tipping point of financial power relocating east. When the world economy recovers, we may find the west is no longer in the driving seat.

/steps off soapbox

[Gladys]

I'm with you two- I too don't have a credit card and never would. If I can't afford it, I don't buy it or have it. I'm appalled at todays young families who are buying buying buying - all beyond thier supposed means. Either I've/We've missed something and they can afford it or there is trouble ahead. I rent our home having been left up the proverbial by a husband the F(f) ather of my children who flew to Canada in the last crunch. He left me £35k in debt which I paid off and eventually sold the home with aprofit of £600 but a completely clean slate which I have kept.Are we going wrong or is everyone else mad?- Replies please asap :) :D