What do you say about the Global Financial Crisis?

[Niall!]

My grandparents are pretty worried, all their money is invested, if they lose that they've got nothing at all to live on.

[Immenseman]

Perhaps we need to move on from a country of consumption and resort back to a country of industrialisation. The economy would bolster considerably, for Britain anyway. I had shares in Bradford&Bingley, not a good time for me either.

[Niall!]

Apparently the EU leaders are gathering in Brussels, but I don't see how they could even think of a way to solve it.

[lScottl2]

there is no way to solve it, just gotta let it pass now

[FlyingJesus]

If you're a share or stock holder don't panic sell.. that's the worst thing to do lol. Best idea is to just ride it out, or, as I intend to do, drink until you don't notice it

[Virgin Mary]

As long as they don't take my money I'm okay =)

[GommeInc]

I heard something about the idea of increasing interest rates, which would mean people in debt would have to owe more, but people who are in the + sums of money will get more in terms of interest. So anyone in debt would have to owe the banks more, therefore increasing the income they get, but it would mean bad news for the people in debt. But when you think about it, their fault for getting in debt

I blame the fact we don't make anything, we just waste money on imports.

My dad had shares which are set to be sold soon, but we're holding on for the moment. The trustee who holds onto my trust account and deals with investments and shares isn't going to sell them for at least 8 months (which is the current outlook on the current financial problems). On the plus side, I get to buy a house when the housing market crashes

[Jordy]

All your money should be safe providing you keep it in British banks, especially the nationalised one's (Most of them now!). Lots of people will have difficulty withdrawing their money from the Icelandic banks, just keep your money in the UK and it will be safe.

It all contributes to the cost of living though which is unavoidable. There's no way to solve the credit crisis, however the government can take measure's to sort it out and improve it.

[scottish]

I heard something about the idea of increasing interest rates, which would mean people in debt would have to owe more, but people who are in the + sums of money will get more in terms of interest. So anyone in debt would have to owe the banks more, therefore increasing the income they get, but it would mean bad news for the people in debt. But when you think about it, their fault for getting in debt

I blame the fact we don't make anything, we just waste money on imports.

My dad had shares which are set to be sold soon, but we're holding on for the moment. The trustee who holds onto my trust account and deals with investments and shares isn't going to sell them for at least 8 months (which is the current outlook on the current financial problems). On the plus side, I get to buy a house when the housing market crashes

The interest rate went down from 5% to 4.5% last wednesday

Reducing the interest rate allows more money in the economy as more people aren't saving their money as there is less incentive to save money in the banks. It also means less interest due on loans and mortgages which means more people are likely to take out loans and mortgages.

If you have shares in banks theres no point in selling as they will rise again when theres more stability in the economy, as there is 50 billion (300billion now i believe?) plan that the banks can take when they need it so the banks aren't going to go bankrupt.

If the interest rate rose the inflation rate would rise, causing prices to go up.. but more money would be in the banks, and as bad as the government are atm as their target for inflation is 2% and is currently 4.7% last time i checked.

[RedStratocas]

while politicians can deny it as much as they want, the problem is the distribution of wealth. there's a quote from 1951 by FDR's FED chairman that explains everything very well:

"As in a poker game where the chips are concentrated in fewer and fewer hands, the other fellows could stay in the game only by borrowing. When their credit ran out, the game stopped."

its amazing how an analysis from more than 50 years ago could describe our situation so well. and it's sad we haven't learned a thing. it's sad that the 700 BILLION dollars isn't going to the people losing their homes or their jobs, but the gigantic corporate banks WHO CAUSED THIS PROBLEM IN THE FIRST PLACE. it's pathetic, really.