Credit deflation and the reflation cycle to come (part 8)

[Virgil Caine]

1 hour ago, SpectrumFX said:

I find it perplexing that they're so focused on these sorts of exercises to shower people with money, and yet at the same time so obsessed with keeping wage inflation down.

They are still trying to pump prime consumption because they don’t have any other ideas for generating economic activity. Presumably this sort of stuff also is temporarily hidden from the general inflation and other monetary stats. Funding the buying of shit we can’t afford and that we don’t need is precisely the last thing Britain needs. At least during the post Second World War period of economic austerity from 1945-54 the government realised that fact.

[afly]

tbh, if you've ever worked in it, most customers can't get their head around that maths of a part exchange and how it affects the payable amount. And if there's a settlement involved (the need to pay off the outstanding loan on their old car) you've lost almost all of them

 

 

Edited March 12 by afly
affected

[Pip321]

4 hours ago, Royston said:

The latest helicopter money drop for the feckless debt junkies seems to be gathering momentum...

https://www.walesonline.co.uk/news/uk-news/martin-lewis-says-staggering-30000-28793210

3 hours ago, Axeman123 said:

Very telling that I had to go back through the article with a fine tooth comb to find what exactly people are expected to be compensated for! The only mention (car finance) that I saw is hidden in the MSE link. It really is all just a pretext.

Good to see Lloyds on the front foot like it was with PPI. They have already set aside £450m....and with PPI it shelled out £21,900,000,000 (£21.9 billion) which is a huge pat on the back for the directors leading the way. (sarcasm)

Now of course the reality is somewhat different.....the directors get a pat on the back, keep close to the gov agenda and influence, maybe even pay themselves a bit more bonus for being proactive....and no one really works out that its the customers paying for it themselves. 

I remember thinking the feckless were ringing up claiming their 'free money' and some never even had PPI but records weren't available so the banks paid anyway. The money was then added to Lloyds costs and was paid for by borrowers, savers and shareholders. 

Not one employees or director paid a penny from their salary, this wasn't a 'fine' but rather a ponzi scheme. All aboard....new train in town. 🚂🚂

 

Edited March 12 by Pip321

[Axeman123]

2 minutes ago, Pip321 said:

God to see Lloyds on the front foot like it was with PPI. They have already set aside £450m....and with PPI it shelled out £21,900,000,000 (£21.9 billion) which is a huge pat on the back for the directors leading the way. 

Banks are de facto nationalised IMO, ever since 2008. Govt pumps money in via printing and then dispenses it to client groups in society like a slush fund. Banks will no doubt be big donors to DEI/WEF etc causes too.

[Royston]

8 minutes ago, Pip321 said:

God to see Lloyds on the front foot like it was with PPI. They have already set aside £450m....and with PPI it shelled out £21,900,000,000 (£21.9 billion) which is a huge pat on the back for the directors leading the way. 

Now of course the reality is somewhat different.....the directors get a pat on the back, keep close to the gov agenda and influence, maybe even pay themselves a bit more bonus for being proactive....and no one really works out that its the customers paying for it themselves. 

I remember thinking the feckless were ringing up claiming their 'free money' and some never even had PPI but records weren't available so the banks paid anyway. The money was then added to Lloyds costs and was paid for by borrowers, savers and shareholders. 

Not one employees or director paid a penny from their salary, this wasn't a 'fine' but rather a ponzi scheme. All aboard....new train in town. 🚂🚂

 

Absolutely.

As ever, all this helicopter money always goes to the feckless spendthrifts and irresponsible debt junkies and is taken from the prudent and productive.

[TNS]

1 hour ago, Royston said:

Absolutely.

As ever, all this helicopter money always goes to the feckless spendthrifts and irresponsible debt junkies and is taken from the prudent and productive.

Still fucks me off how i didn't load up with PPI and finance when i was younger, probably be mortgage free on the payouts by now. It's like a reward for being a fucking idiot.

[Royston]

5 minutes ago, TNS said:

Still fucks me off how i didn't load up with PPI and finance when i was younger, probably be mortgage free on the payouts by now. It's like a reward for being a fucking idiot.

When I did get my first mortgage in 2000 and was somewhat naive I did have PPI for the first few months because I was given the impression it was compulsory, I soon realised it wasn't necessary and binned it off... yet when I applied for my PPI compo I was told there's no record of me ever having it.

As ever, no free money for me.

[sleepwello'nights]

16 minutes ago, TNS said:

Still fucks me off how i didn't load up with PPI and finance when i was younger, probably be mortgage free on the payouts by now. It's like a reward for being a fucking idiot.

We were given a mortgage indemnity insurance policy when we took out a mortgage some time ago. Didn't pay a premium as it was an incentive with the mortgage. We made a mis-selling claim, well why not, it was rejected because the policy paid out when we once made a claim. I think we were paid out something like £2.50! As it paid out it we couldn't claim it was mis-sold.

I only claimed because we never made any deposits when Buidling Societies were demutualising and I missed out on that. Just like the PPI claims because we never took out any.

I'm claiming for the car interest, well why not.  Also the emission claims stuff for the same reason.  

I reckon its all part of helicopter money schemes dreamt up by the government, with back handers somwehere along the line.

Edited March 12 by sleepwello'nights

[sancho panza]

depsite the title the numbers are still small but the direction of travel is clear.

Still need to havea full run through natwest annuals but noted that theyre claiming that stage 2s are down from £48bn in 2022 to circa £42bn year end 2023 iirc,which goven the fact that more people have come off fixes in 23 onto higher rates I find hard to beleive.

there may well be some room for manouvre as they remo people onto 35 yr mrotgages or palm the bad debtors off to otehr providers but still.........

 

https://uk.finance.yahoo.com/news/mortgage-arrears-rise-high-interest-rates-113131839.html

UK mortgage arrears rise 50% amid high interest rates

The proportion of UK mortgages in arrears has risen to its highest level since 2016 as households continue to struggle with high interest rates.

The value of outstanding mortgage balances with arrears increased by 9.2% between October and December from the previous quarter, to £20.3bn, and was 50.3% higher than a year earlier, according to Bank of England data.

The figures, provided by around 340 regulated mortgage lenders, showed the proportion of the total loan balances with arrears, relative to all outstanding mortgage balances, rose on the quarter from 1.12% to 1.23%, which was the highest since 2016.

The value of new mortgage commitments fell by 6.6% from the previous quarter to £46bn, and was 21.2% lower than a year earlier.

The data also revealed that the share of mortgage advances for buy-to-let purposes fell by 0.5% from the previous quarter to 7%, the lowest since mid-2010.

[Long time lurking]

 

[Long time lurking]

 

[Loki]

3 minutes ago, Long time lurking said:

 

Bid to cover was still 2.5 though so they didn't need to buy anything

[Red Debt Redemption]

Vehicle insurance multi policy renewal £600 increase from £300.

Extra virgin olive oil £8.40 per litre. (£2.40 early 2022).

You're on the money guys and gals and lamposts, buckle up.

Edited March 12 by Red Debt Redemption

[AlfredTheLittle]

2 minutes ago, Red Debt Redemption said:

 

You're on the money guys and gals and lamposts, buckle up.

Because multi vehicle insurance and olive oil have gone up? First world problems! 

[Red Debt Redemption]

2 minutes ago, AlfredTheLittle said:

Because multi vehicle insurance and olive oil have gone up? First world problems! 

Use your eyes I'm not ya dad listing everything for you.

[reformed nice guy]

2 minutes ago, AlfredTheLittle said:

Because multi vehicle insurance and olive oil have gone up? First world problems! 

[Loki]

8 minutes ago, AlfredTheLittle said:

multi vehicle insurance and olive oil have gone up?

And you're laughing

[MrXxxx]

Enjoy! :-)))

 

[Chewing Grass]

Anecdotal: Local Fabrication and Light Engineering Co has received Zero new orders since January, can't go on for much longer if nothing received in the next month.

A small business that expanded nicely but probably a bit too much.

[AWW]

20 hours ago, Democorruptcy said:

I thought when it was up in the air about raising bennies with inflation, energy subsidies etc, it was the red wall MPs wailing about losing their seats if they didn't do it because voters in those places were the most skint.

What those MPs failed to realise is that those people wanted work to pay, not to get more bennies.

[spygirl]

2 hours ago, Chewing Grass said:

Anecdotal: Local Fabrication and Light Engineering Co has received Zero new orders since January, can't go on for much longer if nothing received in the next month.

A small business that expanded nicely but probably a bit too much.

Strongly, .I've picked a local metal fab as my testco.

Did lots of staircases n work vans.

I'd usually picka pub but they all went bust in 08.

[spygirl]

3 hours ago, MrXxxx said:

Enjoy! :-)))

 

US inflation rise to 3.2% highlights ‘last mile’ challenge for Federal Reserve

Unexpected increase set to be scrutinised by central bank as it weighs interest rate cuts

 

Top rated comment -

"Economists polled by Bloomberg" Might as well report on monkeys throwing darts at a dartboard. And the idea that inflation can be measured in decimals of a percent - and then an 'error' of a decimal being material - is for the birds. Recommend 149 Reply Share Report

LawrenceB 9 HOURS AGO   In reply to Upton That’s a bit unfair, those monkeys would be very upset to hear you’ve compared them to economists

[snaga]

3 hours ago, MrXxxx said:

Enjoy! :-)))

 

Worth watching just for the insurance inflation commentary impo.

[sancho panza]

@spygirl and @DurhamBorn think you've both warned on this one

https://www.telegraph.co.uk/business/2024/03/12/morrisons-posts-1bn-loss-debt-interest-payments-soar/

Morrisons posts £1bn loss as debt interest payments soar

Interest costs amounting to £735m help push the retailer further into the red

Morrisons plunged to a £1bn loss last year amid a surge in debt interest payments linked to its private equity takeover.

The supermarket chain, which was acquired by Clayton, Dubilier & Rice (CD&R) for £10bn in 2021, fell deeper into the red for the year ending October 2023 as finance costs grew.

Accounts for Morrison’s parent company, Market Topco, show the group made a pre-tax loss of £1.1bn last year after racking up £735m in interest costs.

These were tied to external debt and inter-company loans, with the debt-financing bill 23pc higher than the £593m incurred in 2022.

Results for Morrisons’ holding company show that revenue slipped to £18.4bn from £18.7bn in 2023, while underlying profits, with excludes debt interest costs, rose to £970m from £911m.

Fuel sales plunged more than £560m to £3.4bn last year, which was before the company sold off its 337 petrol forecourts to Motor Fuel Group in a £2.5bn deal two months ago.

Morrisons is expected to use a large chunk of that cash to pay down its £5.4bn debt pile.

[sancho panza]

17 hours ago, MrFanciful said:

You can do a search on web.archive.org and someone has probably archived it

https://web.archive.org/web/20240311152108/https://www.telegraph.co.uk/business/2024/03/11/four-million-abandoning-work-permanently-benefits-surge/

Absoluteyl incrdible figures