By using this site, you agree to our Privacy Policy and our Terms of Use. Close
selnor on 12 October 2008
Edit Thread
crumas2 said:
selnor said:
 

If a child wants a console for christmas the parent will choose another if they cant afford a particualr one. Especially if they have like 3-5 children. They could never afford to get expensive gifts for all. And you are right F1 on it's own is not pure evidence. So I'll add that Woolworths is on the verge of troubles and Miss Sixty in the UK is the latest to go into administration. The crunch is felt here to, and our house market is the worst it's been for 12 years.

http://www.guardian.co.uk/business/2008/oct/01/retail.creditcrunch

http://www.telegraph.co.uk/finance/newsbysector/retailandconsumer/2820883/Wobbly-Woolworths-faces-tough-Christmas.html

 

 

 

Okay... so what's causing Woolworths to go all Wibbly-Wobbly in the UK?  The problem here in the states is primarily due to ARM loans that should never have been given (and the ensuing consumer panic now that the issue has come home to roost).

The problem is almost all the banks in England are linked financially to banks in the US. Hence when it started to cave in the US, noone here in the UK could get credit including mortgages. Hence our housing market began to crash and is in a bad way. The bank of England is having to bail out some big name banks here, much like the government in the US is doing. It's a much bigger mess and knock on effect than you think.