As this recession bites more deeply the situation will arise were more people have difficulty in paying their mortgages - Banks would then normally repossess and resell the houses at cheaper rates and recoup most of their money. However NOW banks will find they have many repossessed houses which they cannot sell; and, boarded up for security they will deteriorate and lose more and more value. So, forcing people out is of no advantage to people who have worked hard for their houses and of little use to banks which will pay taxes for empty and degrading properties. It seems then a much better solution for the banks to reduce interest rates, adjust terms and accept less profit – this way they may also survive.
"Ok - we did not force u to take the mortgage” they may opine when you approach them with reductions in mind. “No, of course not” you may return "but you (the bank) are a reputable institution who should have had some idea of forthcoming financial trends and certainly you could have been expected to provide sensible guidance to your customers who were simply trying to get a foothold on the housing ladder; certainly much of the blame for the situation lies in your court and you can reasonably be expected to share the pain of a difficult situation much of your own making. Is it not your usury of money put into your trust which has led to this recession?"
Often the 'seven year cycle' is talked of and ‘the property market will take off again after this’ is voiced in comforting tones. However the present money shortage in the US and Europe is of a different nature and is to do with the gradual but accelerating move in production of many essential goods away from the west and into the asian countries. To survive well in modern global trading conditions countries need strong industries and wage scales that match those of their competitors. As this need filters through into our over paid and failing industries they will continue to decline: wage levels will fall and many jobs will go. Now, then, is the time to accept lower wages and buckle down to rebuild industry and small businesses. A new framework is needed with much less government and council interference and rates and regulations reduced to sensible and easily bearable levels.
It is time to wake up barter, argue and lobby so the UK retains its position in the money wars which are always being waged.
A system that allows real financial education and decisions respecting the needs of others is required. Adopted globally such a comprehensive model will then bring sensible control over finances and help to the many needy countries.
