Scary new figures have just been released by the debt charity credit action.

I had stopped looking at these figures a number of months ago because they where becoming depressing, so I thought I would disect the report to see if we could find any green shoots, but I was shocked to discover a £ 1.1 trillion hidden blackhole.

Here are the highlights;

REALLY SCARY NEWS.. The public sector pension debt is £1.1 trillion – I didnt even know this figure actually existed as it’s kept hidden and not disclosed in Govt figures THIS IS OUTRAGEOUS. Basically successive governments have continued to promise public sector workers (i.e. MP’s) final salary pensions. I wonder why our MP’s have not been shouting about this one ???

Real GDP in the UK declined by 0.4% during the first quarter of 09, which means that we have officially been in recession for 18 months – which is the longest period since 1955 when records began.

5.8 Million are claiming benefits, an increase of 628,000 (13%) in the year.

39% increase in company liquidations compared to the same period last year.

27% increase in personal insolvencies compared to the same period last year.

77% increase in the number of mortgages more than three months in arrears.

Interest paid on public sector net debt (PSND) equivalent to £920 per household per annum. Net debt as at September 2009 £824.8 bn.

Unemployment at 2.47 Million, a rise of 7.9%  on the previous quarter and the highest number of unemployed for 14.5 years.

An average 12% drop in income for families contacting debt charities.

The Citizens Advice Bureau has reported a 46% (during the last six months) increase in the number of people struggling with debts owed to gas and electric companies.

1 in 4 adults are currently struggling to pay their monthly bills.

1.75 million people hiding their debt form their partner.

And now for the good news….

Interest rates look likely to remain low for the next five years.

Halifax reported house price rises of 1.6% in September.

The average house price in the UK was 1.7% higher in September 2009 than the end of 2008. (maybe stabilised ?)

56% of the nations wealth is linked to property.

Conclusion.

I have never seen a more powerful set of figures highlighting that without the property and mortgage market thriving, public sector workers (MP’s) getting real about their retirement expectations,  we are going to have major problems going forward.

The one saving grace is that property values seem to have stabilised, and if we can sort out the mortgage market, next year we might move into an overall improving economic situation.

Trumpo is keeping his fingers crossed that the break up of the big banks and new entrants like Richard Bransons Virgin might accelerate new mortgage lending again and put us on the road to recovery.

Yours Trumpo. 

 

 

 

 

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