stxx meinte am 13. Mar, 05:02:
This is a frightening statistic. Especially, the UK shows 1 out of 2 who cannot meet such a daily expense call. I've stumbled across credit card data of the UK where it shows that the outstanding credit card volume is about GBP60bn. Of those, GBP40bn are paying only the minimal amount instead of the whole balance. This is consumption that is financed at min. 17% p. a. If you look at a consumer balance sheet, I don't know which asset you hold against this liability where returns are equally attractive to at least break even (maybe housing, lol).
GBP40bn is about 3% in UK GDP, another indicator of this economy's wreckless overleveraging, besides taxpayer money in a first loss piece (equity) of too big banks in wind down mode, a financial system where the largest 5 institutions have assets of x4 domestic GDP, break-neck stimulus spending and many more which are heard often enough ...
It feels to me that the UK had an economic near-death experience in 08/09. But if something in the world goes wrong again, this will be it - Goetterdaemmerung. No chance to use the taxpayer again to create confidence in the UK financial system.
Mahalanobis antwortete am 13. Mar, 18:28:
This is consumption that is financed at min. 17% p. a. If you look at a consumer balance sheet, I don't know which asset you hold against this liability where returns are equally attractive to at least break evenI thought this asset is my human capital. Boy did I overestimate my NPV. But hey, there is a fair change that it is only a liquidity problem.
There is something I've never understood about credit card debt in the US or UK. Are the overdraft limits on giro accounts / checking acounts lower (Here in Austria you usually get 2x-3x monthly salary) or do those people really just max out their account and than roll debt with their credit card?
stxx antwortete am 14. Mar, 20:10:
Let's roll baby :) GBP20bn are paid down by month end. The GBP40bn really just pay the minimum amount. I've met people who had 15k-30k in cards debt and earn less than myself. Two UK credit card master trusts had already near-death experiences, Pillar and CARDS (MBNA) ... needed massive support by the originators or the trusts would have broken triggers and liquidated (incl. losses for AAA tranches?!?).Check here:
http://www.bba.org.uk/bba/jsp/polopoly.jsp?d=470&a=17353
stxx antwortete am 14. Mar, 20:22:
How is that: 41mn active cards and GBP43bn of interest bearing balances. That's 1,000 Sterling per card.The population of the UK is 61mn. Take 50% of that to estimate the active workforce (bold but good enough). Interest-bearing balance is then about 1,400 Sterling per employed person. So, every working person in the UK owes on average 1,400 Sterling in unsecured debt at a min. 17% rate?
If this has not breached the Ponzi death spiral already?
