Times are Changing...

...or rather they have changed. It's been a while since my last post, but lots has been going on. This time I turn my attention to the economy since it's something that everyone seems to be talking about at the moment.

In a nutshell, lots of people are worried - and so they should be. Call me a clever dick if you like, but the cracks have been appearing for well over a year now, and I saw them coming from miles away, but most of my friends and acquaintances it seems have had their head in the sand for too long - they've been in denial - and only now have they suddenly realised that what I have been telling them for the past year has been happening under their noses.

Call it the 'Credit Crunch' if you will but this is a term only recently given to the effects of the global financial crisis also affecting, suprisingly, the UK. It's been there for all (who were interested) to see for a year and more in the USA and many other countries, but good old Blighty by and large thinks it's immune!

Two main things affecting the average 'Joe Public' at present include the ever apparent increase in costs (utilities, food, fuel, taxation etc) and the rapid tightening of lending criteria allied with increased lender interest rates.

Add in to this mix falling house prices (finally the bubble has burst ending the silly house price speculation that has carried on in earnest for the past 7-8 years, but that's another story...) and suddenly those in debt (and even those that arn't) are finding they can no longer afford to pay ever increasing costs and can no longer release equity (if there is any...) from their falling property value due to the fact that lenders won't lend.

Another nail in many-a-coffin will be the end of borrower's fixed term low interest mortgage deals, which means that their mortgage repayments for their over-priced properties will suddenly increase as they move back on to their lender's standard variable rates (which are a lot higher than they used to be).

Am I gloating ? No, far from it. I would consider myself in a much better position than most, but this is going to affect everybody. Make no mistake, there is trouble ahead, so position yourself now to weather the storm, because it ain't going to be pretty.

TTFN

Disclaimer: The views and opinions I post are the views and opinions of me, and me only, and do not reflect views or opinions of anyone or anything else. Views and opinions are subject to change without notice!