'worst Financial Crisis In Human History': Bank Boss's Warning As Pound Suffers Biggest Fall For 37 Years

[sassienie]

Daily Mail:

http://www.dailymail.co.uk/news/article-10...l-37-years.html

Economy outstrips forecasts to shrink by 0.5%

Pound suffers worst fall against dollar for 37 years

FTSE plunges 9% before rallying to close down 5%

Asian markets tumble for a third day amid global fears

Sterling took a hammering as economic figures showed the UK approaching full-blown recession.

Bank of England deputy governor Charlie Bean warned that the pain is just beginning, calling the situation the 'largest financial crisis of its kind in human history'

On the 79th anniversary of the Great Crash of 1929:

• Britain's economic output slid 0.5 per cent - more than twice the decline expected by the City;

• Markets tumbled around the world, with leading UK shares losing almost £50billion;

• Sterling had its worst-ever week against the dollar since 1971 and hit a record low against the euro;

• Experts warned that hedge funds are facing disaster, with billions likely to be wiped off savings and pension funds;

The economist added: 'We are going to have to wear a hair shirt as a nation. If this turns out to be recession lasting five or six quarters, which looks possible, we are not going to see the slightest upturn until 2010. And even then we can expect at least five years of muted growth.'

Sassienie quote:

I would expect further drops in the baht rate against the £.

For those of us on final salery company pensions, the UK government does offer a compensation scheme if a pension fund goes down. There are no such schemes imposed for those on private pensions.

UK banks will compensate up to £50000 on savings, this does not cover all off shore accounts. Isle of Man has it`s own compensation deal up to £50000, Jersey and Guensey have none at this time.

The good news is, errr, sorry, there isn`t any.

Edited October 25, 2008 by sassienie

[spiderman2]

The good news is, errr...

Houses are set to become affordable.

And maybe the govt will realise you cant build an economy on debt, house prices constantly rising and the financial centre of London, hence we may start to build a industrial base again giving people skilled jobs....................and Nulabour thieves and liars will soon be out of a job.

[Ricardo]

Fortunately we Brits have decades of experience, in moaning & blaming the government, now we have an excellent opportunity to exercise these skills.

Also to demonstrate our well-known sense of humour, in the face of adversity.

[PhilHarries]

The good news is, errr...

Houses are set to become affordable.

And maybe the govt will realise you cant build an economy on debt, house prices constantly rising and the financial centre of London, hence we may start to build a industrial base again giving people skilled jobs....................and Nulabour thieves and liars will soon be out of a job.

To do that you need skilled people and that takes 4 year minimum apprenticeships. The Thatcher legacy comes home to roost, if a nation produces nothing it has nothing to sell.

[CroBiker]

3rd world can expect invasion of destitute Brits now....

[kmart]

The good news is, errr...

Houses are set to become affordable.

And maybe the govt will realise you cant build an economy on debt, house prices constantly rising and the financial centre of London, hence we may start to build a industrial base again giving people skilled jobs....................and Nulabour thieves and liars will soon be out of a job.

To do that you need skilled people and that takes 4 year minimum apprenticeships. The Thatcher legacy comes home to roost, if a nation produces nothing it has nothing to sell.

Yup. I was in one of the last intakes of the apprenticeship schemes of the early 80's. The government of the day did actually subsidise companies to take on apprentices (to alleviate seriously unemployment stats). They trained them up for the government handout, then let them go.

No one invested in Britain's manufacturing base. No thought for the future of output, or for a society that had grown up around heavy industry; hard work; war; rationing; etc. Nowadays, we have to be thankful if some Korean outfit deigns to open a factory oop North, and has a few hundred people assembling crap, after doing 30 minutes of Tai Chi in pink overalls in the car park before starting work...

Banding the wagons round an EU mirage, or becoming the US' lapdog are simply not enough to maintain a credible economy anymore.

[spiderman2]

The good news is, errr...

Houses are set to become affordable.

And maybe the govt will realise you cant build an economy on debt, house prices constantly rising and the financial centre of London, hence we may start to build a industrial base again giving people skilled jobs....................and Nulabour thieves and liars will soon be out of a job.

To do that you need skilled people and that takes 4 year minimum apprenticeships. The Thatcher legacy comes home to roost, if a nation produces nothing it has nothing to sell.

Ofcourse it will take time, money and innovation.

We can get some highly skilled immigrant Indian, Chinese, French, Germans, Japs, Americans to teach us these skills again, the w4nkers that run the country are always telling uneducated racists like me how good immigrants are to the economy so maybe its about time they got some scientists, engineers, designers etc....that actually are useful to the average indigenous British working man/women.

And not just doctors and nurses poached from third world and developing countries where theyre needed more then here, and masses of low/semi skilled East Europeans that do nothing other then lower the wage of indigenous people and fill our already diminished housing stock.

Thing is nothing will change for the better, weve got a generation of kids who have been brought up on social security just about to be released into a recession hit economy, and many of them are fat.

[ignis]

3rd world can expect invasion of destitute Brits now....

Not if there house owner or have a mortgage

[sassienie]

The good news is, errr...

Houses are set to become affordable.

And maybe the govt will realise you cant build an economy on debt, house prices constantly rising and the financial centre of London, hence we may start to build a industrial base again giving people skilled jobs....................and Nulabour thieves and liars will soon be out of a job.

To do that you need skilled people and that takes 4 year minimum apprenticeships. The Thatcher legacy comes home to roost, if a nation produces nothing it has nothing to sell.

Ofcourse it will take time, money and innovation.

We can get some highly skilled immigrant Indian, Chinese, French, Germans, Japs, Americans to teach us these skills again, the w4nkers that run the country are always telling uneducated racists like me how good immigrants are to the economy so maybe its about time they got some scientists, engineers, designers etc....that actually are useful to the average indigenous British working man/women.

And not just doctors and nurses poached from third world and developing countries where theyre needed more then here, and masses of low/semi skilled East Europeans that do nothing other then lower the wage of indigenous people and fill our already diminished housing stock.

Thing is nothing will change for the better, weve got a generation of kids who have been brought up on social security just about to be released into a recession hit economy, and many of them are fat.

OK, good point but off key to what this thread is about.

To maintain this keeps Thailand related, the subject is: how is the present British economy going to affect Brit ex-pats already residing in Thailand or considering living in Thailand long term.

[yabaaaa]

Daily Mail:

http://www.dailymail.co.uk/news/article-10...l-37-years.html

Economy outstrips forecasts to shrink by 0.5%

Pound suffers worst fall against dollar for 37 years

FTSE plunges 9% before rallying to close down 5%

Asian markets tumble for a third day amid global fears

Sterling took a hammering as economic figures showed the UK approaching full-blown recession.

Bank of England deputy governor Charlie Bean warned that the pain is just beginning, calling the situation the 'largest financial crisis of its kind in human history'

On the 79th anniversary of the Great Crash of 1929:

• Britain's economic output slid 0.5 per cent - more than twice the decline expected by the City;

• Markets tumbled around the world, with leading UK shares losing almost £50billion;

• Sterling had its worst-ever week against the dollar since 1971 and hit a record low against the euro;

• Experts warned that hedge funds are facing disaster, with billions likely to be wiped off savings and pension funds;

The economist added: 'We are going to have to wear a hair shirt as a nation. If this turns out to be recession lasting five or six quarters, which looks possible, we are not going to see the slightest upturn until 2010. And even then we can expect at least five years of muted growth.'

Sassienie quote:

I would expect further drops in the baht rate against the £.

For those of us on final salery company pensions, the UK government does offer a compensation scheme if a pension fund goes down. There are no such schemes imposed for those on private pensions.

UK banks will compensate up to £50000 on savings, this does not cover all off shore accounts. Isle of Man has it`s own compensation deal up to £50000, Jersey and Guensey have none at this time.

The good news is, errr, sorry, there isn`t any.

Don't forget this is the Daily Mail!! say no more........

[G54]

3rd world can expect invasion of destitute Brits now....

Can we all got to Poland and other countries now and earn a decent crust?

[marshbags]

3rd world can expect invasion of destitute Brits now....

Can we all got to Poland and other countries now and earn a decent crust?

There is plenty of room if the present influx of not only them but all the other Eastern Block country intakes are anything to go by.

No easy access to welfare hand outs can be expected in return though.

marshbags

[OlRedEyes]

3rd world can expect invasion of destitute Brits now....

So things will stay the same as the past few centuries?

[Soutpeel]

"Bank of England deputy governor Charlie Bean warned that the pain is just beginning, calling the situation the 'largest financial crisis of its kind in human history"

Well what do you expect with Mr Bean running the BOE...

[cmsally]

"Bank of England deputy governor Charlie Bean warned that the pain is just beginning, calling the situation the 'largest financial crisis of its kind in human history"

Well what do you expect with Mr Bean running the BOE...

:D

Nice one!

He could of even tried to increase his credibility by calling himself Charles Bean, but then I guess he's stuck with the Bean so I guess he just didn't bother.

[geriatrickid]

I wish. Alot of those houses are mortgaged to the hilt. Now the hapless homeowners are stuck with dwellings worth considerably less than the mortgage. They can't afford to sell, or else they will fall further into debt.

Lest you think there will be lots of lender repos, think again. The banks have just woken up and realized that if there is a glut of houses on the market, they will get even less than they need to cover the non-performing asset. As well, gov'ts see that having folks forced from their homes will put pressure on the rental market and subsidized housing. There's a shortage of decent affordable rentals in most big cities. Wiser to keep people in their homes for the next year or so. Even if some person could afford to buy a house now, the credit crunch will make it difficult to get the mortgage.

This is a lose lose scenario for everyone.

[PeaceBlondie]

Methinks that for all our moaning, the UK and the USA are similar. Just different accents. I just saw the estimate of the percent of American homes that are worth less in sales price, than the outstanding balance on the mortgage. Maybe 22%. That drives down sales prices, even further - except you cannot afford to settle and sell. This banking meltdown was caused more by rampant capitalism, than by a nanny state. What will this do to state pensions?

[Tywais]

What will this do to state pensions?

I have that same concern since I have a retirement income from state university retirement system. Did check their website to see what's up and this was one press release.

"Finally, while the systems recognize the grave realities of the current financial markets, we are well-equipped to look beyond the fear that has permeated our society in order to make investment decisions that are in the best interests of our members. The state retirement systems remain stable and our benefits are reliable."

Of course that is a PR release.

[Maverell]

It is quite simple for me really, I cannot go on the pop so much.

I have been meaning to cut down on my alcohol intake and ( deleted ) for some time. Now I am being forced to.

A good thing for my physical health perhaps.....always think positive !

[BEENTHEREDONETHAT]

What will this do to state pensions?

I have that same concern since I have a retirement income from state university retirement system. Did check their website to see what's up and this was one press release.

"Finally, while the systems recognize the grave realities of the current financial markets, we are well-equipped to look beyond the fear that has permeated our society in order to make investment decisions that are in the best interests of our members. The state retirement systems remain stable and our benefits are reliable."

Of course that is a PR release.

Thanks goodness that social security is able to get the required $ out of thin air, like the rest of the US gov't $.

[HorseDoctor]

So, if one has cash , would this be a good time to move to England?

[srisatch]

What goes around will come around

When I first came here...aeons ago the £/Baht rate had been a steady 1-40 for a while and the $ was 1-25

We always based everything on those rates.......good grief 1 Baht of gold was 6000Baht!!

In the heady days of Khun Chavalit( oh please please come back) GBP went to 1-90..........you could not get into a bank for the crush of Brits sending their funds to LOS

We bought the house in Chiang Mai at 1-74......so at least done something right in life

The difference for me from 1GBP-60 and 1GBP-40 is about 50000 Baht a month.........Nobody going to try and tell me I can't live in LOS on 100K Baht a month I hope........but difficult if you have commitments on the higher rate.............Most of our money goes on paying for the car...12000 Baht a month and the insurance thereof which is a staggering 20000 a year and the same on the Toyota ....that is about twice what we pay in the UK............we have an electric bill of 2500...but that is constant hot water.............apart from that just school fees at c.100,000 a year

Most 'commentators' (sic) are saying Thailand is well placed as the banks have little exposure to foreign debt........and the price of oil is declining..........but exports...including sugar and rice will be savaged..........Cannot see the BOT can prop up the Baht forever

Hang in there!!

[samuibeachcomber]

Methinks that for all our moaning, the UK and the USA are similar. Just different accents. I just saw the estimate of the percent of American homes that are worth less in sales price, than the outstanding balance on the mortgage. Maybe 22%. That drives down sales prices, even further - except you cannot afford to settle and sell. This banking meltdown was caused more by rampant capitalism, than by a nanny state. What will this do to state pensions?

maybe the topic should concentrate on this,"how does the ongoing crisis effect ex pats living in thailand"

This depends on everyone's different circumstances.For people here who are retired the lowering of interest rates "back home" and poor exchange rates for many(USA excluded for now) means a tightening of the belt perhaps,just have to hang in there.For people earning income from the stock market things could be more dire.For younger ex pats working here there's probably not a problem.

But the biggest worry for everyone is if the banking systems do collapse,and no one can get their money out in time then its "big trouble litle china" to borrow a phrase from a well known movie.There are no answers!

[unomi]

[chiang mai]

So, if one has cash , would this be a good time to move to England?

That's the thought that has been going through my mind for some time. It seems to me that an expat in Thailand is probably in a decent situation here if he/she has already committed his wealth to Thai Baht and or has income or significant investment here in Thai Baht. But my guess is that most Brits will have left their money in Sterling offshore UK in order to derive the income stream. In the case of the latter the future in Thailand looks awfully expensive whilst the opportunity to buy property in the UK at a sensible price in say twelve months time, looks potentially attractive.

[endure]

The Daily Mail - the Chicken Little of the UK newspaper market

[patklang]

many expats have not realy suffered much with the fluctuating pound-baht .i have lived here on 74.9 and the last 15 months months on 69.9,but after i return from the uk with 10,000 gbp i need to cash this in about 30 weeks so i hopoe that the baht will go up to the gbp.the bad news my 5 year executive investment bond is 28,000 gbp down in the first year,but i dont need to cash any for 2 years so again i hope i am lucky.

[PeaceBlondie]

I am no historian of 8,000 years of human history, but many an entire empire has collapsed, and I suspect the headline writer was exaggerating. Indeed, I and many other expats are distracted by the news from back home. Meanwhile, I am more annoyed if the attendant does not fill the tank with 24-baht/liter E10 fuel, which beats the price of benzene 95 earlier this year.

[Neeranam]

Breadheads of the world unite!

Thankk God I have no investments/loans and left that country and way of thinking years ago.

[srisatch]

Oh there's a long way to go before many expats are poor. Just remember what people here have been living on for years AND SAVING

1€=1$=1£...=what? 25Baht?? might happen!!

The things that cost me money are Council Tax in the UK, my fuel bill should I be daft enough to spend the winter there...and now, of course Air Fares...should I be daft enough to go back!!

Only thing I can see would really wreck life would be collapse of Internet