"Dude--Where's My STUFF?" The Economic & Housing Crisis in the UK & the US

In this "disser-rant," I'm going to discuss and rant about the effects of the worldwide credit crunch in both the UK and the US and how it all ties to the upcoming US presidential election.

And I'm gonna do it all from my position in my nice comfy armchair in the UK.

So if you don't want to listen or aren't interested in my socio-political rant, you are invited to leave. However, those of you hearty enough to stay, sit down, buckle up, and hang on because I'm gonna let 'er rip.

You don't need a passport to see this. However, maybe if more Americans HAD a passport they would understand that there's a world beyond their borders.

When America Sneezes . . .
Banks going under. Economic crisis. CEO's walking out of failed companies with gynormous golden parachutes. Forclosures are skyrocketing. Increased unemployment. Pending political elections. Internal fighting within political parties. Accusations of "celebrity" politicians.

Sound familiar?

Yep! I'm talking about the situation in Britain. Why? What country did you think I was talking about?

On Tuesday, September 23, Prime Minister Gordon Brown gave a speech before the Labour Party Conference in Manchester, England that was generally well received.

"I didn't come into politics to be a celebrity or thinking I'd always be popular." Brown said. "If people say I'm too serious, quite honestly there's a lot to be serious about."

I couldn't agree with him more. There are some very serious issues that need to be sorted out about the economy and the housing crisis. Considering that Brown was Chancellor of the Excequer--or the man that controlled the country's purse before coming PM--you'd think he'd know better despite the policy gaffes he's made that requires every taxpayer to get a refund from now through the end of March 2009. I just got my first rebate in my recent pay packet. Thanks, Gordon!

In short, before becoming "president" Gordon Brown was secretary of the treasury.

With regard to Brown's speech, Ian Gibson, Labour MP for Norwich North is quoted saying, "That was an Obama moment a la Britain."

I shit you not.

But another thing that was made an issue is that this is not the time for the Labour Party to give in to internal squabbling. Now is the time for them to sort out the plans they have for saving the country.

Hmmm . . . is anyone listening in the United States?

Anyone sitting out there reading this and still wondering why the hell the world is butting into America's political and economic affairs--there is your answer.

It's true what they say: When America Sneezes, the world catches cold.

Everthing's Coming Full Circle

You see, British parliment in Westminster is having the same problem as Congress in Washington D.C.: How the hell do they keep the nation's economy afloat without sticking it to the taxpayers...or, at least not stick it to 'em in a way they can see it?

A year ago, give or take a few days, the UK started to see its first real casualty in the banking arena because of the subprime bust in the US. Northern Rock was a bank/building society that grew from a local building society into a nationwide bank and was seen as a player in the mortgage arena. That is until they went tits up and panicked customers and investors decided to go 1929 on Northern Rock's ass and started to withdraw their money.

The news showed people standing in line waiting to get their deposits before the money ran out. Whereas investors were a bit tied. Their stock prices were dropping and rumors of a government or private buyout kept things in flux. In the end, Northern Rock became nationalized, but the damage was done and the confidence in the banking industry was gone.
Northern Rock got too greedy and became reckless in the way they lended money.

Housing Crisis
When I moved here 3 years ago, I was amazed at all the TV programs related to property buying and investing.

Property Ladder is a show about wannabe property investors getting their first property and (hopefully) turning a profit.

A Place in the Sun is a show about buyers looking to invest in property away from wet and gloomy Britain and find, you guessed it--a place in the sun that will generate income and/or a second home.

Location, Location, Location, is a show about people needing help buying a home and the drama caused therein.

All of these programs showed the good, the bad, and the ugly that comes with purchasing property. But it also showed the foolishness of people who buy into property they can't afford or can barely afford and then hope their gamble pays off. Sometimes the result is ugly and sometimes you feel sorry for the property owner--but sometimes you feel they got what they deserved.

These are just a few of the popular shows (they aren't so popular now, believe me) but they showed how sometimes the presenter will talk or convince the prospective buyer to "stretch their budget a little" in order to get that prime investment/house of their dreams.

Well guess what? Many of them decided to stretch and they're paying for it now.

But I tell you something. I still have plans to invest in property. I plan to have properties overseas. Real estate is something every human on this planet needs, whether it be a home for you to live or a hole for you to rot in when you die (unless you go for cremation, but that's another topic). Real estate is here to stay, and just like the stock market, it will bounce back.

Now is a good time to buy, actually. Buy cheap, sell high. The trouble with the current situation is that housing prices kept rising, credit kept extending, and now that the bubble has burst, no one can afford to buy--not even the government, apparently.


Who is to blame?
I'll tell you who's to blame. I blame banks for being stupid when, after generations of being portrayed as cautious, they decide to go over the deep end and lend money recklessly. Banks used to be these cold and uncaring industries. I should know. When my mother died suddenly and we didn't have the means to pay for a funeral, my dad went to the bank for a loan. They flat out refused. So I never have and never WILL see a bank as "my friend." Just protect my damn money. That's why you got all the safes.

I blame crap mortgage brokers. One of which I had the misfortune to work for. Not all mortgage brokers are dishonest, but the one I worked for (briefly) was incompetent. After being a part-time business consultant, he decided to go out on his own and open a brokerage and job placement agency. I was his secretary/receptionist. Things were fine for a while until he tried to close some mortgages. One mortgage involved a friend who was trying to buy a home away
from his wife--while still having her sign the papers--because they were going through a separation. The purchase was fraudulent from the start since this couple were not going to live together and the assets being shown were "fudged." This "broker" botched up the deal so bad that, on the day of closing, his friend needed to fork over another $12,000 in order to save the deal. Not only that, but this "broker" hit me up for $200 so he could pay his home water bill!
I loaned him the money--and got it paid back. But when he tried to get others to join him and sponser them getting their broker's license, some of his candidates were not professional at all. When I brought it to his attention, he tried to tell ME that I was the one who was unprofessional!
Needless to say, I left his "employment" but not without letting him know that if he tried to smear me professionally, I had proof of his dirty dealings and I would send them straight to the state licensing board. I never heard from him again. A few years ago, I saw he was STILL in business, but I have a feeling that by now, he may be feeling the pinch--and so he should. His type of greed and stupidity only hurts innocent people. Damn, I should've reported his ass anyway. I guess I'm too nice.

I blame Mr-Mrs-Miss-Ms. Joe and Jane Schmoe who accepted loans/mortgages/whatever that were way over their budget. For not reading the fine print--or not getting someone trustworthy to explain it to them. Now they are at risk of losing homes they could barely afford anyway and are getting anally screwed by their variable-rate mortgages.

Yeah, I said it! Some of the blame lies with us. We ALL know people who are no good with money and should not be given blank checks. Hell, some of us ARE those people.

Believe me. I know where of I speak. At the tender age of 23, I had to go to CCCS because I couldn't pay my credit cards. Granted, I was only $2000 in debt (the very minimum debt they would accept at the time) but it taught me a lesson. I am not good with finances, so I tend to be very careful. Fortunately, my husband has a better head with money than I do.

I also know what it is like to lose a home to foreclosure and the shame, stigma, and uncertainty in life it brings. So I think I have earned the right to say that SOME people have NO BUSINESS getting credit! If they are to have credit, it needs to be limited and controlled until they prove they can handle more.

President of the United Bucks
People in America need to wake up. This election is HUGE and is more important than the cost of arugula, nursing bruised feelings because their candidate wasn't chosen, or what shade of lipstick best matches fur.

Talk about the dumbing down of America. I'd rather have someone in charge that has a higher degree from a prominent institution and capable of enlisting capable advisors versus a faded party boy and his #1 cheerleader with a perky pair of pom-poms. Anyone who sees that having a high-standard of education for the president as "elitist" must have voted not once, but TWICE for the current no-mark sitting in the oval office right now. And look where it's gotten us.

I'm an educated black woman and there are many, many weak-minded people who find that frightning. Well guess what . . . I'm an educated black woman who is registered to VOTE.

Are you shitting yourselves yet? Call me an elitist. Call me a snob--I do! Hell, I'll take it as a compliment.

If you think that another four years of "Bus(c)h Light" will get us where we want to go, then I'd say the dumbing down of America is complete.

Do YOU feel secure? I'm not talking about physically secure, I'm talking about emotionally and financially secure. If you do at this very moment, I applaud you. You know how many homes you have as well as how much money you have and where it is.

But for people who know what it's like not knowing if they are going to have a home over their head or a job to pay for it--they don't feel very secure at all.

There are supposed to be presidential debates this weekend and now that possiblity is being threatened by a poser claiming to be too concerned about the economic crisis to campaign at the moment.

Bullshit.

This is not the time to hide BEHIND the crisis but to come out in front of a mass audience and tell that audience how you intend to SOLVE it.

As an American, I demand to know exactly what these candidates propose to do over the next four years and with a little over a month until the election, the American people deserve to know too.

Britain and America are linked, like it or not. From my position as a black American Sistah in Scotland, I can see certain things creeping in to British society via America and it is scary.

Sometimes, it's like watching a train wreck about to happen. At other times, it's like rubbernecking on a highway after a car smash. More often than not, I go through life over here in deja vu; trying to remember how to do a body swerve to avoid mistakes that have happend in
America, or worse yet, are cycling through once again because people haven't learned from history. Hindsight is 20/20, but my memory isn't and it's frustrating.

Britain gives America Simon Powell and The Spice Girls. America gives Britain a credit crunch in return.

It seems to me that, in the end, both countries got screwed. Perhaps we should call it even.

OK, that's it--for now. I'd love to read your comments. You don't have to agree with me, but since I approve comments, I'm not going approve comments that simply take personal digs at me and my opinions.