Why is Britain in so much debt?
Is it because of Tony Blair and all the money he spent on getting us into war?
All the job cuts they are doing are ridiculous and its so hard to get a job. Do you think David Cameron will help us out of it even a little bit?
The real problem is the effects of the banking crisis. Through complex international arrangements our banks lost billions lending money to people who were unable to pay their loans back. We then had to borrow billions to prop the banks up to prevent them from going bust – and now we have to pay the debt back. The same problems have caused other countries like Iceland, Ireland and Greece even worse trouble than us, and places like Italy and Spain are also in very serious trouble. Even the USA is very exposed.
A lot of people have said that we should have let the banks go bust, but the truth is that the consequences of that would have been even worse for our economy.
Personally I don’t think Tony Blair is particularly to blame, although I expect I’ll get t/ds for saying so. He wasn’t running the banks (they were private enterprises) and his worst crime was not to regulate them as tightly as he might have. But you have to remember that the problem was an international one (that really originated in the USA) and regulation is not something that I have often heard The Conservatives asking for more of. I don’t think they’d have picked it up any better.
“Surge in demand for corporate debt”. What does it mean?
I just read this
“For years in Brazil, high interest rates, a complex tax system and frequent boom-and-bust cycles crimped development of a local bond market. A recent surge in demand for corporate debt has pushed investors and government officials to look for new frontiers in fixed-income markets – such as structured finance products for states, cities and state-owned companies.”
What is corporate debt?
This is the link to the article.
There are two (basic) ways in which corporations can raise money:
a) they sell shares in a company – so when you buy shares from company A, you are actually buying equity – you own a very small part of the company. These shares are sometimes traded publicly for example, New York Stock Exchange or NASDAQ.
B) they sell corporate bonds – so when you buy bonds from from company A, you are actually buying part of their debt – that is, the company is actually borrowing money from you, and it is gonna (hopefully) pay you back with interests.
So a surge in demand for corporate debt means that companies now feel comfortable in issuing debt, that is, borrowing money from people who buy their bonds. Brazil has nightmarish regulations, and so few companies were enticed to issuing bonds (and even few investors were willing to buy them), but as the Brazilian economy has stabilized in the past few years, the appetite for corporate bonds (debt) has grown a lot, so a surge in demand.
Why weren`t the banks allowed to go bust?
We seem to have poured billions into a bottomless pit here in the UK that we will be paying off for years to come. Surely the government could have just gauranteed everyones bank accounts and mortgages etc and then formed new banks.The old banks could have sold off any liquid assests and liquidated their debts.
But the government had already guarenteed peoples savings up to £30 000. How many people do you know who have this much moneu in their accounts?
Deighton it wasn`t every bank or building society trhat went bust, so the stronger banks would continue to operate as normal. Barclays, Nationwide and Santander have stayed away from the bail outs and I am sure countless building societies could be added to that. Indeed Lloyds TSB were another strong bank until Brown foolishly convinced them to take on HBOS.
Eh…… Yer a bit late mate! Lmao!
booked holiday company went bust?
paid via credit card if able to claim money back fromthem how long can thistake
It can take up to a year. That’s why often when a holiday company goes bust, other companies scramble to make a new booking for you with a ‘deed of assignment’. That means that in return for securing your booking, they will take on your debt and reclaim it from the liquidated company. Thomsons were always very quick to do this when I worked in travel. It means you don’t have to wait for a refund before you book another holiday. Travel agents will know which companies are offering this. If you don’t do this you will get your money, but it can take months and months.
how did Manchester United get to to debt in the 1st place?
When the glazers bought the club they took out a loan of reportedly £130 million which had a interest or about 15% interest annually which is around 19 million onto the debt per year. This was in 2005 or 2006 so add 19million onto £130 million four times you come out around the 200 mark.
Add that to the clubs out standing debt of somewhere in the region of 500 million that got there from the glazers buying cash debts from banks (that went bust shortly after) and refinancing the total worth and placing the debt on utds books, instead of personal accounts, leaving them up sh*t creek 700million in debt and owing 70 million in interest payments on bank loans yearly.
The banking collapse played a big part, It happened at a bad time for a club in that situation. But, the 15% interest strikes me as a bad deal they should not have gotten into.
The 130million loan is due to be paid off before 2017. Adding up the interest 130 million becomes 580 million.
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