How did the Financial crisis of 2007–2008 affected you?

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Hello all,

How did the Financial crisis of 2007–2008 affected you?

I was in college when it happened but I remember my step dad was out of work for a long time and it was only my mother that was working at the time.

When the next crisis happens I'm sure it could possible affect me.

 

Had £100,000 in Northern Rock postal account. Account was frozen could not access funds. Could not go to office or smash down doors like on TV. Only £30,000 was protected. Could have lost £70,000 if they went under.
After crisis I had to open 2 more business accounts to get back under the £30k limit. Some of those accounts were also later frozen and I had to write letters to get access to my own funds.

My current contract ended.
Spent multiple months out of contract looking for work on multiple occasions.
Had to take multiple overseas contracts on low rates.
Lost £10,000's in lost revenue.

Generally I got out of it OK, but it wasn't a good time and it won't be good next time either.

We will probably experience Japan style Stagflation and the value of fiat will be eroded over time. At Davos they said they may need to print up to $100 trillion. Ctrl-P

 

Woah! That does sound like a rough time. Must be frustrating not being able to access your own money.

 

Oddly enough, I was not affected. Stayed in employment, even though the firm I worked for relied massively on PFI.

Seem to remember a lot of people screaming about not being able to get a mortgage. For some unknown reason they thought they were “entitled” to a mortgage and got all upset when the answer was “no” or they had to provide proof of income. Shows how crazy things were back then.

However, I don’t think we’re out of the crisis at all. Interest rates are too low and too much funny money is swimming in the system. I think things will go pop soon.

 

Yep the crisis never ended, they just kicked the can down the road by printing money.

Before the crisis I asked for a 250k mortgage, I was offered 500k. Then you had stuff in the US like NINJA loans, the whole thing was insane.

However the real issues are structural and systemic, its probably going to take a massive crash before there is any chance they are resolved, and even then it will take a massive awakening of the public to the reality of the central banking system.

Bail ins and capital controls are common in countries that have issues, in the next crash everyone could lose access to their money.

 

Makes you wonder if those times were the "bubble" and that we're now back to normality - as in pre Blair/Brown years? Remember those two clowns? They abolished "boom and bust" along with "snow and ice"...not.

I remember the cost of living raises when at the council and I was told by the long-time folk there that such things never applied in the 70s/80s/90s. Between 2005 - 2007 when I was at a council I got an automatic pay grade rise, a discretionary pay grade rise and 4% - 5% "cost of living" rise? What made us think that it all could be sustained?

Same with the local colleges in the area when all the "IT lecturers" suddenly got laid off - most of that was backed by career development loans which the banks pulled once things went pop.

ALL of that stuff was Blair/Brown era which could never last, yet some act like it was the norm and so has to be brought back. Only way that'll happen is a) massive increase in taxation on the productive and b) massive increase in borrowing which will just bring forward the inevitable crash that much quicker.

Our "Greece" moment is fast approaching, the day when we all wake up to be told that there is no NHS, no public services, no pensions etc. and taxes are going up. We've been having too much of a party for the last 25 years and no-one has kept an eye on the bar tab.

As the Germans used to say to one another during the final months of WW2 "enjoy the war because the peace will be hell".

 

I was a college student at the time so slept through it tbh.

 

And you make a good point. I was at college during the ERM crisis but witnessed my parents nearly losing their home over mortgage IR hikes. One of the early warnings that ever closer financial & political union with the continent was not a good idea. The Germans left us out to dry whilst Soros made billions off the back of the UK taxpayer - all that money the Bank of England poured into the money markets came from somewhere...the taxpayer, and we're probably still paying off that debacle.

Interesting how it's Germany and Soros who are financing the push for a 2nd referendum on the EU. Sorry folks, but Germany is the EU and vice-versa.

 

It mostly depends on your job and the market your in. I worked as a School Safety for the NYPD at that time, I noticed there was not a lot of kickbacks during that period. All PD and affiliates(speaking for NYC) received their checks, and things just went on. I'm sure there were probably issues yet I didn't notice. Probably speaks volumes to my surroundings as far as my job.

As far as the next crisis. I'm still working for a municipality yet at a higher pay scale. Because of this, I'm sure it'll have more of an impact on me financially.

 

Great to read a perspective from across the pond!