Ten mind-boggling statistics from the credit crunch

It's been a year of mindboggling statistics and silly money, of soaring debts, collapsing stock prices and astounding events.

When Northern Rock collapsed last year, did you think, "We're going to have to nationalise the rest of them too". No, me neither.

I also bet you didn't work out that the part-nationalisation of our banking sector would cost you at least £8,000 in taxes. And this is just the beginning.

Here are some other surprising, dispiriting and utterly disturbing statistics from the financial credit crunch which has ravaged our financial sector, broken the back of our economy and produced a recession that could be the worst for many generations.

1. £500,000,000,000

...or around £8,000 each. £500 billion is a conservative estimate of what taxpayers, you and me included, are paying for Gordon Brown's plan to bail out the UK banking system. The three-part package includes committing up to £50 billion of taxpayer funds for a part-nationalisation of Lloyds TSB, HBOS and Royal Bank of Scotland (RBS), which is now 57 per cent owned by you and me.

The Bank of England will pump at least £200 billion into the money markets to encourage banks to lend to each other again, which should help lower the costs of new mortgages. And the Government is also making a further £250 billion available for banks over the next three years to guarantee medium-term debt which is of dubious quality. This should also help restore confidence and get banks lending to each other again.

£500 billion is a staggering amount of money, equivalent to 4,000 brand new hospitals (at £125 million each), 16 new high speed rail links between London, the north of England and Scotland or 37,000 Jamie Oliver-approved free school meals for each and every pupil in the UK. Instead, they'll be eating turkey twizzlers.

2. £20,000,000,000

This is the amount of taxpayer cash that has gone into the coffers of the Royal Bank of Scotland, a bank which was the pride of Scotland until the prefix "troubled" was permanently attached to its name. This is the equivilent of £333 each. You have Sir Fred Goodwin, the former chief executive of the much-maligned firm, to thank for this. Royal Bank of Scotland made £7.5 billion in net profits in 2007, the year before the banking bubble popped. Last month Tom McKillop, chairman of RBS, apologised for the right royal mess the firm was in.

3. £1,800,000,000,000

£1.8 trillion is the cost to the global economy of the credit crunch. Such a vast number is difficult to grasp, but in the same report, the Bank of England valued the UK economy, the fifth biggest in the world, at £7 trillion. So it has so far cost about a quarter of the value of our entire economy.

4. 0.4 per cent

The drop in retail sales last month compared to a year ago, according to the British Retail Consortium. This doesn't sound like much, but a predicted fall next year of just 4 per cent will produce the worst conditions on the high street since 1965, according to research by Verdict, a retail consultancy. Major retailers are collapsing into administration, including Woolworths, Pier and MFI, and more are expected to follow in the next 12 months, as consumers shut their wallets, bury their purses and consider making half their Christmas presents.

This won't just create less choice on the high street. The retail sector employed 3.2 million people last year, so problems on the high street spell huge problems for the economy at large.

5. £50,000

This is the amount which will have been wiped off the value of your house by the end of next year, according to the Centre for Economics and Business Research (CEBR), an optimistically-minded think tank. It predicts that average prices will fall by 25 per cent and not return to their peak until 2013. The average home in the UK, which hit £200,000 in August 2007, will fall to £149,000 by 2009. Capital Economics, the consultancy, has said that prices could fall by 35 per cent, peak to trough, although it also forecast a tentative recovery in 2010.

6. £50,000,000

Executive pay at the five biggest banks exceeded £50 million in the last five years, according to a report by the Labour Research Department. Sir Fred Goodwin, the head of RBS, was paid a basic salary of £3.5 million last year. Between 2003 and 2007, Goodwin got £15.5million in basic pay and cash bonuses. Eric Daniels, of Lloyds TSB, pocketed £10.2million and HBOS chief executive Andy Hornby earned £6.9million, according to annual reports.

Another number to remember is 59.9p: the lowest share price this year of Halifax Bank of Scotland, 92 per cent less than the highest point in the year. Stocks in the embattled mortgage giant, which is set to be taken over by rival Lloyds TSB have plummeted since trading at almost £11.60 last year.

7. £2.5million

The cost of celebrating Christmas at Britain's nationalised banks. Lloyds TSB, which is accepting about £5.5 billion from taxpayers to shore up its broken balance sheet, is to spend around £2.5 million on Christmas parties for its 100,000 UK employees, or around £25 a head. Meanwhile, HBOS is hosting a "luxury dinner and dance" at the Birmingham NEC for 1,500 mortgage workers, with free hotel rooms thrown in. Meanwhile, Royal Bank of Scotland (RBS) is spending £1 million on parties for its 100,000 staff. RBS also spent more than £300,000 entertaining 40 senior employees and 30 partners recently.

Alex Neil MSP, an SNP member representing central Scotland, reflected the mood north of the border when he said the bank was "playing with fire". He added: "I don't want to be a party pooper, but spending £1m on Christmas parties when so many pensioners have lost their savings as a result of the RBS share collapse is obscene."

8. £1,500,000,000,000

This is the amount of debt which Britons have to pay back. £1.5 trillion is the amount we owe in the form of mortgages, credit cards, personal loans and store cards. This equates to roughly £4.5 billion washing machines or 7.5 million three-bedroom houses.

The average household in the UK with personal, unsecured debt, such as personal loans or credit cards, owe £22,190. If you include mortgages, the average household debt is £59,715.

However evidence suggests that we can't afford to pay it back. About 120 properties were repossessed every single day in the UK last month and the situation is expected to get worse as growing numbers of households struggle to meet their mortgage commitments. The Council of Mortgage Lenders says 200,000 homeowners will have missed at least three mortgage repayments by the end of the year.

Auction houses are reporting a huge jump in the number of repossessed homes on their books. Allsops, one of the largest, recently held an auction with 996 lots, compared to 227 in the same month last year.

The bad news continues. The number of homeowners trapped in negative equity is expected to soar to 2 million by 2010.

9. $2,900,000,000

Last year's pay cheque for George Soros, the second-highest-paid hedge fund manager in the world. Mr Soros is the chairman of Soros Fund Management and was estimated to be worth about $8.8 billion by Forbes magazine last year. This could clear the credit card debt of almost 300,000 struggling Americans.

The average American household owed $2,966 on their credit card in 1990 compared to $9,840 in 2007. The average American male earned $32,000 last year, according to figures from the US Census, and last month more than 533,000 Americans lost their jobs, the largest amount in 34 years.

10. $52,000...

...every minute. This is how much cash GM, or General Motors, is losing as a result of the economic meltdown in the US. Note that this eclipses the average annual American salary. This collapse in profitability has forced the world's biggest carmaker to go cap-in-hand to the US government and it has been joined by Ford and Chrysler, which are facing similar loses. The US carmarkers are asking for £23 billion in taxpayers cash.

By James Charles

More from Money Central:

The 10 biggest winners from the financial crisis

Ten people who predicted the financial meltdown

50 tips to beat a recession

The 10 worst property investments ever

The 10 stupidest taxes ever

The six safest places for your savings

The 10 most decadent dictators

The 10 craziest parking tickets ever

The 10 most ridiculous fines of all time

50 great things you can get free

The 10 biggest stock market crashes of all time

Comments

[KereldegeMove]

[b][url=http://dorgosoft.com/]All Popular Softwares For PC and MAC[/url] English, Deutsch, French, Italy, Spanish Version [u]The financial crisis? SAVE YOUR MONEY! Discount Code - D33W-3333 - and you will get a DISCOUNT of up to 30% for our all software ! Discount Code - ADBE-3333 - and you will get a DISCOUNT of up to 50% for our Adobe software ![/u] [url=http://dorgosoft.com/]software buy now [/url] ----------------------------------------------

[cestionse]

We are here when you prerequisite subsidiary mazuma change to usurp you past to the next [b]payday accommodation[/b]. When there is something you privation hand away, we can daily you fix it come to pass with a expeditious accommodation from plain Loans. You may hunger for to imbibe trouble of something now without waiting new, so we can usurp with a accommodation until payday. Terms can be arranged to fit your prerequisites, so that you can do what y

[creditlook]

haha - too funny! Check this out for even more: Rewards Cards Credit Cards !!

[Ahmed]

Fractional reserve banking and fiat currency are ills of any society. Interest is prohibited specifically for these reasons in Islam.

As for poverty increasing day by day can simply be fixed with paying Zakat of all gold on earth.

[keith]

You have to stop blaming the banks and governments alone for this economic meltdown. Everyone has had their nose in the trough of cheap money. Now those with mega debt are crying unfair banking practices for their sorrows. Reckless greed and drunken partying is the cause of the worlds economic meltdown. Now the chickens have come home to roost no one wants to play anymore.

[mulester]

"This equates to roughly £4.5 billion washing machines or 7.5 million three-bedroom houses."
I didn't know that the economic situation had gotten so bad that washing machines are now officially used instead of currency. Writing a list of numbers should be easier than a proper article (I'm a journo myself) but this is a train wreck. James Charles should perhaps consider giving up his position to someone (anyone) better qualified. Anyone who can understand basic maths and English to a primary school level should be an improvement. This is unforgivable.

[Peter]

I'm with Jim Rogers, if I can find a sound country to join.

[Brian Lewis]

In the 1970s, I seem to remember an investor (Sinclair?) saying that when financial armageddon approaches you need a bycycle, a machine gun and a ton of baked beans. Gold coins would be useless as you would be set upon as soon as you showed the gold! We are already some way down this path!

[Andrew]

I don't understand how house prices will make a recovery in 2010. More and more businesses will go bust this year, more and more people will be made redundant and therefore more and more people will not be able to afford a home so how can everyone be so optimistic? Baffling.

[steve]

What worries me is, they say to the banks here is a few billions, now lend ,lend ,lend. Errrr correct me if am wrong but that's how this whole pathetic mess came about and why i am getting peanuts for a savings rate.Live within your means should be the message not borrow borrow borrow.Do not try to buy a £200,000 house when you are 50p above the min wage and the banks should be very very strict on lending criteria, not complained about for being so.

[gee]

When did 1000, 000 000 become a billion? (By Stuart Wilson)

I have questioned this myself why growing up in Africa, I don't think original number naming format is being used any more

[P Show]

Suffix, prefix. Learn the difference you cocknob!

[Jon L]

"When Northern Rock collapsed last year, did you think, "We're going to have to nationalise the rest of them too". No, me neither."?

We err yes actually.

I'm not sure where you get your information from but this banking and general financial meltdown has been known about for years.
Also the "£8000 each" doesnt include the pre existing public sector overdraft which is several times that per head.
The reckoning has a long downside to go yet.
If they keep "stimulating" it will carry on for the better part of a generation.When you give money, " stimulate" to one part of the economy you take it from some other part , usually the most productive part. Its an, at best , zero sum game.
If the reckoning is allowed to take place however then 2013 may see some sort of flattening at least.

[Paul Wardley]

Golodh:
I couldn't agree more with your rebuttal of the author's unreasoned and inane comments. I'm a journalist myself but I'd refuse to tackle a nonsensical 'list' piece like this one.
If you're going to get somebody to compile any sort of financial review, it would be a good idea to choose an individual who knows the difference between countable and uncountable nouns, who could therefore avoid such terrible solecisms as "...more than 533,000 Americans lost their jobs, the largest amount in 34 years".
Are there no sub-editors at Times Online?

[Stuart Wilson]

What I really want to know is:
When did 1000, 000 000 become a billion? It used to be a miliard and a billion was a million million.
So the 500 000, 000 000 is really "just" half a billion. The Americans obviously couldn't count as well as the British, so decided that they would dumb down our number systems and have since taken over the World with their incorrect number terminology.

Am I alone in this?
When I was at school a very long time ago a thousand million was simply that... a thousand million. When did it become a billion, to the detriment of a real billion, which was always a million millions?

[Derek Holmes]

Mr Brown has saved the world but the UK has gone down the toilet. I always thought charity began at home.

[Pirate Rae]

Just a thought:

In 1997/98 Gordon Brown sold all of Britains gold reserves at rock bottom prices, raising money for the equity bubble. Ooops, now gold is more attractive than a piece of borrowed furniture.
Britain now has little or no gold reserves left, which means they don't really have any money. We've become slaves into working back debt.

[Golodh]

I heartily recommend the following post "James | 23 Dec 2008 12:21:01".

The article is a classic illustration of the dictum that data isn't the same thing as information. The article throws questionable and un-instructive numbers about while failing to put them into context. Just the thing a journalist eager to get a story, any story, into print.

In turn:

1. As James noted, that 500 billion gets a lot of collateral in return. So it's more of an investment than a handout. Ignoring that is either dishonest or uninformed.

Oh yes, and anyone who feels it would be a good idea that letting the UK banking system go down the drain in these times can please turn themselves in at the nearest mental hospital.

2. See James' comments. Spot on.

3. Another meaningless number. Nothing of the underlying infrastructure has gone up in flames, no harvests have suddenly turned to dust, and no minerals have been pilfered. What disappeared was some of the expectations of future economic growth. Real enough when it hits you, but lets be happy that we have it as good as we do. Very very few people in the West die of starvation.

4. Only 0.4% ??? Is that *all* ?? What are we all bitching about then? Now that 4% *projected* drop in sales is more serious, but it hasn't happened yet.

5. UK house prices have been unrealistically high for at least a decade. What we are seeing is a healthy and sensible correction. And one that doesn't affect people who use their house to live in rather than a piece of their investment portfolio. Of course people who have to sell up, or who can't make their mortgage payments deserve our sympathy, but otherwise there is nothing wrong with current (housing) market conditions.

6. Yes, it's hard to bear. So why not discuss world-wide salary caps for banking executives? If you do it on a world-wide scale the old argument "we gotta get the best" drops out of the equation. What you buy for such exorbitant salaries is zeal, greed, and irresponsibility. Not talent. Real talent can always start its own business and run the risk every entrepreneur takes.

7. Well yeah. It's impossible to explain to people who just lost a lot of money. Banks really should be more politically sensitive. But then again ... 25 quid a head isn't all *that* much. And how would *not* spending that money benefit the economy? It's ugly, but not something I'd loose sleep over.

8. Yes, that's a problem all right and some form of social safety net will be needed.

However ... it's high time that the UK and the US got rid of their irresponsible high-debt credit-fuelled economic structures that got us into this mess in the first place and went back to more sensible low-debt arrangements. Like e.g. the Swiss. Or the French. Or the Germans. Let's hope that the current credit crisis will educate Britons and Americans to that effect.

9. If those millions had had the foresight and acumen of mr. Soros, they would be quids in. For those who had forgotten for a moment: capitalism rewards the savvy and the lucky.

It's a disgusting form of "saloon capitalism" to now begrudge mr. Soros his riches after first embracing the gospel of the Free Markets.

10. So what? It's up to the next US government to decide if that cash is forthcoming. If the US automakers have a future, they should be extended bridge credits. Otherwise they should be liquidated. Simple in concept but hard to carry out.

[Tony]

Never has the working man had so much power. All we need to do is have a national TAX strike in April. No Council tax, no driving taxes, no parking tax untill no public servent (Judge, politician, teacher or other proffesional benifit claiment) is paid a pension higher than the basic state pension the same as I was pmomised by Prime Idiot Blair when he taxed my pension to closure. Easy! credit cruch solved by the people who caused it!!!!!

[Pirate Rae]

This place is over-run with with millions of liars, thieves and criminal minded pirate like individuals.
London is a very good example of this. Money is the booty and we are the victims, that is if you are not a pirate yourself. Only now the victims may just fight back and the pirates will be fighting each other. Civilised chaos is the order of the day. My advice, make sure you have some good friends with good intentions.
I've seen first hand the mentality of the 'young British/Irish yuppy'. They are brainwashed into believing they are 'informed' and 'in control' with the ability to 'help' and 'do well'. Unfortunately that was all based on money. Of which is going to be in very short supply, very soon. All my realistically self governed comrades bear arms because the reaction of these people will be so pathetic, so vehemently low, so intolerably overbearing that you may want to take matters into your own hands. Fear not because all you need to do is keep doing what you are doing now. Take care of yourselves and if things do get a bit edgy, then do what I do and take some rum!
The winds of change are upon us, so sail with caution and have a very merry pirate-mas and a happy new year.

[John Bull]

@Matt. Many "limeys" - myself included - prefer to avoid Canada, which is more boring than Belgium and has the vulgarity of the US with none of the greatness and the arrogance of France with none of the style.

Happy new year...

[Jim Ballantyne]

One of the best commentaries I have seen is here: http://tinyurl.com/6mdfkv
Unlike Alex Neil MSP I do not shy from being a party pooper.
Just after your parties Mr/Ms Financial, please all feel free to jump as directed, Canary Wharf, Edinburgh Castle, wherever you find yourself, are just as good places to jump as Wall Street choose whichever is handiest for you. We will not miss you for an instant. Side benefit is providing employment for those who will have to sweep up after you - nothing new there.
Not having sufficient gumption to tell their employers that party time is not for now and act by not attending is a certain indicator of what these self centred people are intending for the future.

[Jim Ballantyne]

£8000 borrowed for for each and every one of 12 million wage earners in the UK over 10 years at interest of 5% gives a repayment equivalent to £84.85 a month. Presumably to be collected in extra taxes over the period.
Not much when you break it down. A bargain really.
Now, what exactly is it we have all bought and are obliged to pay for?
Stupidity - clear and simple.

[Tino]

With respect to the comment by Matt about not wanting "limeys" in Canada, I must say it is complete nonsense. I'm sure you would have written the same comment regardless of the context of the discussion. If you need a soap box to rant about "British Union Louts" so desperately I'll be happy to provide you one, and we can all throw rotten tomatoes just like the limey louts we are! The unions did not get us into the mess we are in. A number of factors contirubuted to our potentially impending recession, but I'm sure you are only capable of considering one per day, so I won't bother listing them.

[Martin]

Is 'cost' the right word?

Firstly the government has part purchased the banks - which surely is an investement.

The rest of the many billions of 'cost' is actually just money 'available' or 'lent'.

If the banks recover, then the government (and by your implication us - as the taxpayer) will actually have made a profit.

Isnt this all just an excuse to exaggerate the gloom and despair - which is what the media seem to enjoy doing so much?

Now the 'cost' of the Gulf Wars are a very different matter - inconceivably vast sums of money totally and utterly wasted.

[shane ellams]

we are ruled and governed by absolute w***kers

[matt]

Sounds quite bad in the UK.
But you created the mess for yourselves, now clean it up yourselves.
I don't want to see anymore limeys in Canada and I'm sure Australia doesn't want anymore of you either.
Every union lout in Canada is a bloody limey - trying his damndest to bring the english disease here. Stay in your own country please.

[Michael]

"You can't compare the £500bn here with £500bn that could be spend on new hospitals etc. When the BoE pumps in £200bn it's swapping that for collateral, essentially."

Nearly all investment is thought to be collateral backed its just when the collateral proves not to be there the problem explodes - Madoff, subprime, UK housing, Lehmans etc. 500Bn invested in infrastructure would have created jobs, demand for materials,demand for banking services and improved the quality of life for many taxpayers. I can not see how putting the money into the banking system is any different from giving Nick Leeson or Bernie Madoff more to invest when they ran out of money.

[Geoff H]

The credit crunch is all about us having spent more money then we've got.
So if we didn't have it to start with, what's the problem ?
We know we're consuming more than this green earth can stand. If we consume less, then surely that's great!
Provided of course I can still have a nice house, nice car and decent holidays.

[Mark]

I think this all needs to be put in the wider context. Be careful to see through the smokescreen of yet more ugly Labour deceit. I'm no economist but here is my view...

a) Cost of living exceeding earnings for most people in the UK as a result of:

b) High Government Spending on ill-conceived projects designed to give the impression within the media that we have a government that was in control. The point made by a previous commenter - The cabinet has no experience in anything other than political theory. They are thus not competent to deliver or manage, only to theorise.

c) Ineffective, lazy and greedy local councils arrogantly delivering poor services at ridiculous prices. £200k for a local authority CEO? Ridiculous.

d) Resulting in high stealth taxes, placing a burden upon the people and this has reduced morale over a number of years particularly given the standards of government services have been falling as well.

e) Taxation has caused people to struggle. Fuel costs over the summer the tipping point. Brown failed to give any relief to Consumers and preferred to keep spending on hopelessly obese government rather than in ensuring that people could afford to get to work, run their business or heat their homes.

f) A culture where the customer is there solely for the purposes of extracting value for shareholders. These [energy] companies in particular do not give a t*** about customers.

g) Paying for the cost of fighting one illegal war and another that is doubtful whether we should be involved.

h) Economic policies that are not Gordon Browns. Remember Brown is an admirer of Greenspan and the mess we are in is as a result of joint US/UK economic policy. Led by Brown.

i) A government that has nothing but contempt for its population. It has been solely about careers, place in history for Labour politicians. Oh and ensuring plenty of benefits for party donors.

j) I believe that Tony Blair knew this was coming that is why he got out when he did.

Reputations of British instituions in tatters. Over 3,500 laws introduced by Labour. Can we really take the law seriously anymore. How do you recognise good important law from law that could have been invented by a 14 year old?

Law is failing, Police have no community respect and with the exception of serious crime have become little more than tax collectors. Medical institutions reputations degrading.

The country is awash with drugs, community has disintegrated and children cannot play outside anymore.

Culture has been eroded to the extent that socially the UK is now homogeneous and tedious.

Secret, controlling police state is growing. Oh yes it is. This comes as a result of a government that is paranoid and out of control.

Meanwhile vital community resources are being closed down whether they be Post Offices or Pubs who simply cannot afford overbearing legislation, absurd, patronising Health & Safety regultation and rip-off council tax rates.

You could read a paper in Y2K and there would have been warnings about consumer debt levels. Brown has been negligent in his management of consumer debt.

You could read a paper in 1990 and find out that we would start facing serious fuel problems around about now.

The global crisis is something that is a direct result of US/UK joint economic policy. Why did the UK adopt the policies of such a lame and incompetent US administration.

For me at least, GB is doing a poor job of smoke-screening the realities, of his own governments poor performance and huge list of failed, expensive, wasteful policies.

Oh well, at least Blair is being paid well now! Oh, and to be honest I don't think we'll see much cash back from the banks. If lightweight Cameron gets in, we certainly won't.

For some years some people have been earning well but only to service silly Labour projects, lousy local council and collapsed housing and transport policies.

God, what makes it worse is that there is nobody, absolutely nobody worth voting for (IMHO). Is it possible that a country of 60m (known!) people doesn't have a single capable leader?

UK is corrupt at the top. Polticians treat us like fools that we are not. Britain is failing both economically and socially.

We've had two idiot governments running both the UK and US. This is the end result. A complete cluster****.

And please don't criticise the media on this one. They are only reporting the realities (ok some aspects of this article a bit iffy). There will be much more bad news to come in the New Year. This is the tip of the iceberg.

Honestly, If you can, I think it is time to desert. All IMHO. Please don't flame me too hard!

What was it they said.... "Things can only get better".

[A worker]

SOCIALISM is the answer. Not the "socialism" of the vile Bourgeois-Imperialist Brown, but radical international socialism. Bring on the Revolution.

[Mark]

I think this all needs to be put in the wider context. Be careful to see through the smokescreen of yet more ugly Labour deceit. This is not just about the banks. I'm no economist but here is my view...

a) Cost of living exceeding earnings for most people in the UK as a result of:

b) High Government Spending on ill-conceived projects designed to give the impression within the media that we have a government that was in control. The point made by a previous commenter - The cabinet has no experience in anything other than political theory. They are thus not competent to deliver or manage, only to theorise.

c) Ineffective, lazy and greedy local councils arrogantly delivering poor services at ridiculous prices. £200k for a local authority CEO? Ridiculous.

d) Resulting in high stealth taxes, placing a burden upon the people and this has reduced morale over a number of years particularly given the standards of government services have been falling as well.

e) Taxation has caused people to struggle. Fuel costs over the summer the tipping point. Brown failed to give any relief to Consumers and preferred to keep spending on hopelessly obese government rather than in ensuring that people could afford to get to work, run their business or heat their homes.

f) A culture where the customer is there solely for the purposes of extracting value for shareholders. These [energy] companies in particular do not give a t*** about customers.

g) Paying for the cost of fighting one illegal war and another that is doubtful whether we should be involved.

h) Economic policies that are not Gordon Browns. Remember Brown is an admirer of Greenspan and the mess we are in is as a result of joint US/UK economic policy. Led by Brown. Check Pestons book for more on this.

i) A government that has nothing but contempt for its population. It has been solely about careers, place in history for Labour politicians. Oh and ensuring plenty of benefits for party donors.

j) I believe that Tony Blair knew this was coming that is why he got out when he did.

Reputations of British instituions in tatters. Over 3,500 laws introduced by Labour. Can we really take the law seriously anymore. How do you recognise good important law from law that could have been invented by a 14 year old?

Law is failing, Police have no community respect and with the exception of serious crime have become little more than tax collectors. Medical institutions reputations degrading.

The country is awash with drugs, community has disintegrated and children cannot play outside anymore.

Culture has been eroded to the extent that socially the UK is now homogeneous and tedious.

Secret, controlling police state is growing. Oh yes it is. This comes as a result of a government that is paranoid and out of control.

Meanwhile vital community resources are being closed down whether they be Post Offices or Pubs who simply cannot afford overbearing legislation, absurd, patronising Health & Safety regultation and rip-off council tax rates.

You could read a paper in Y2K and there would have been warnings about consumer debt levels. Brown has been negligent in his management of consumer debt.

You could read a paper in 1990 and find out that we would start facing serious fuel problems around about now.

The global crisis is something that is a direct result of US/UK joint economic policy. Why did the UK adopt the policies of such a lame and incompetent US administration.

For me at least, GB is doing a poor job of smoke-screening the realities, of his own governments poor performance and huge list of failed, expensive, wasteful policies.

Oh well, at least Blair is being paid well now! Oh, and to be honest I don't think we'll see much cash back from the banks. If lightweight Cameron gets in, we certainly won't.

For some years some people have been earning well but only to service silly Labour projects, lousy local council and collapsed housing and transport policies.

God, what makes it worse is that there is nobody, absolutely nobody worth voting for (IMHO). Is it possible that a country of 60m (known!) people doesn't have a single capable leader?

UK is corrupt at the top. Polticians treat us like fools that we are not. Britain is failing both economically and socially.

We've had two idiot governments running both the UK and US. This is the end result. A complete cluster****.

And please don't criticise the media on this one. They are only reporting the realities (ok some aspects of this article a bit iffy). There will be much more bad news to come in the New Year. This is the tip of the iceberg.

Honestly, If you can, I think it is time to desert. You only have one life and it ain't going to be a good one here. All IMHO. Please don't flame me too hard!

Oh and we've got to pay for an Olympics in a part of London that only people in Kent and Essex can get to. Sod the rest of the country.

What was it that they said...
"Things can only get better". Yeah, only when you lot sod off!

[Stan]

Get your facts right!! RBS cancelled the Christmas parties for all its staff. Any that were held were paid for by the staff. And don't say we can afford it as we all get massive bonuses because we don't. A few senior execs may have binged on ridiculous bonuses but the vast majority get paid a normal wage like everyone else. Oh sorry, that doesn't make a good news story does it? Don't let the truth get in the way. Best go back to blaming the banks and thier staff for everything.

[David]

High taxes?
Governmental strategy lacking?
Big wigs lining their own pockets during times of hardship?
All of these things have gone before, and future generations will see again, so you need not worry.

Always remember, ignorance is bliss!

Merry Christmas!

[Peter Cochran]

Totally agree with a previous comment "the media is driving us further into recission" so let them now drive us out as quickly.........

[Jonathan, Chicago]

Why are they having Christmas Parties at all with funding from their employer? I work for a very large non-UK bank and we've had all official or funded parties cancelled globally. Any parties are taking place off site and have been funded by the employees. It's absolutely extraordinary that people are getting parties paid for, given the current climate.

[Santa]

Some quite rude comments. Lighten up. IT'S CHRISTMAS!!!!

[patel]

what credi crunch. Rubbish. WE CAME BACk FROM CRUISE LAST WEEK.tried to book in business class, Full, tried economy class full. at last we founf in Premimum Economy class. that was also full on inwards flight @* outbond flight.Is that whatis termed as credit crunch

[Nick]

Appalling article.

Haven't the press done enough damage to our economy with their scare-mongering without having worthless additions like this thrown in?

[Father Bob]

One question that does not seem to be answered by anybody - why are the institutions and individuals who perpetrated fraud by repackaging sub prime loans into highly rated securities not being prosecuted?

[Bill G]

There are some people who take themselves far too seriously writing to this blog. This is clearly a bit of little light hearted seasonal guff with a serious side. It does however, miss out the most telling statistic of all. That is the Gordon Brown, whilst Chancellor and later PM has borrowed over £9 for EVERY second he has been in office. And we and our children are going to have to pay it back.

[Amin Aswet]

TO: "The Truth Hurts"
If you must be pedantic, you have to be accurate.
"Nor me"? NO,NO,NO!
"Nor I", surely?
In relation to the Chief Executive at HBOS- interesting to note he "earned" his money while the others were "paid" or "pocketed" or "got" their millions. Was his performance that good?

[john van diesel]

british are just pathetic sometimes.

[Kurt]

Disappointing article. Seems the author does not have a clue about Economics. Guaranteeing debt for instance does not mean that this is an actual amount paid out to banks. Equally, the stakes in banks are also worth something and the loans to banks come with strings attached. Shame on you!
Please re-write your article to be more balanced.

[Derek Bevan]

Ref para 8. £1.5 trillion = 1,000 xs more in debt!

[Derek Bevan]

So it was Harold Wilson who SHORT CHANGED us,10/10 or 10/12 or 10/18,why did he alter the number of zeros for Billions/Trillions !

[Mike]

It's what happens when people who have never run as much as a corner shop are put in charge of our economy.Perhaps we should count our blessings that we have so many immigrants,as we are always being assured they do so much good for a countries'economy.

[james]

This journalist obviously majored in economics at a Weatherspoons pub. Perhaps he can also provide the answer to "everything" so that scientists at Cern cn go home and stop wasting their time. Jeez, I didn't know the Times had resorted to writing dribble. I must switch to another publication that reports the facts. Not one that tries to sensationalize them.

[DontSlouchDarling]

This is inflammatory drivel. For shame, Times.

So on average we owe £60k including mortgages, and average house prices will reach £150k? Isnt that 40% loan to value, excluding all the other assets we have? Doesnt sound bad at all.