The UK Pays Its Debt
The British public have shown the government how its done by wiping £8.4 Billion from their mortgage debts in the last 3 months. This is due to the financial situation and dropping house price putting home owners off re-mortaging meaning more money has been put into mortgages than was taken out for the third successive month. This is despite the Bank of England’s policy of promoting growth by dropping mortgage rates to the lowest rate ever, making some see the folly of paying off their mortgage when they are paying less than ever
Despute this the public have chosen to put money into their mortgages, staying in their comfort zone rather than put money into the economy. Either way this is good for the finance industry
Contrast this with figures for just a year ago when the public withdrew over £6.7 Billion from their mortgages plunging the finance sector deeper into crisis. Whether this will be a significant point in the turn around will remain to be seen.
The only question will we manage to survive Swine Flu long enough to see a recovery! The media are now saying that the current death toll of 273 will rise to over 65,000 which sound bad but you need to remember that over 20,000 people die of flu related illness every year! At least this takes their attention from ruining the economy!