Brits 'most debt in Western Europe'
Sep 27th, 2006, 06:14 AM
#22
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When you say French banks "are not allowed," do you mean there's some sort of regulation preventing it?
Banks in the US have similar guidelines -- probably lower than 40% -- but that's not regulated by law.
Banks in the US have similar guidelines -- probably lower than 40% -- but that's not regulated by law.
Sep 27th, 2006, 06:27 AM
#23
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One might add that "Anglo-saxon" economies are characterised by the heavy indebtedness of households, with consumer spending very dependent on "wealth effects", as the economists say, linked to bond and real estate values, but public debt is relatively limited (30-40% of GDP, I believe, in the UK and US).
Continental economies have generally a much higher public debt ratio (60-70 % of GDP in Germany and France, above 100% of GDP in Belgium, Italy. Outside Europe, Japan's public debt is about 170% of its GDP.
Continental economies have generally a much higher public debt ratio (60-70 % of GDP in Germany and France, above 100% of GDP in Belgium, Italy. Outside Europe, Japan's public debt is about 170% of its GDP.
Sep 27th, 2006, 07:06 AM
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One anecdote, which of course proves or confirms nothing: last month we went back to England, and visited the couple who now own what was our family home in Dorset. They are a young couple in their 30's, expecting their first child. He's in pharmaceutical sales, she's a teacher.
They took what was a nice but ordinary house with a spectacular view and turned it into a beyond-fabulous home that belongs on the cover of Modern Homes magazine. It has every modern amenity: lovely kitchen, 3 full bathrooms (travertine master bath), whole-house sound system, plasma TVs, fitted closets, huge deck with hot tub. (My folks would be amazed to see it!) After we took the tour, he was happy to tell us how much the renovations cost. He spent £250,000, plus another £50,000 on furniture etc. That's in addition to the purchase price of the house.
He evidently has a very good job, and probably bonuses, but admitted he was mortgaged to the hilt and maxed out on credit cards. I would love to live in that house, but not if I couldn't sleep at night for worrying what might happen if I lost my job... (Been there, through a couple of reorgs.)
They took what was a nice but ordinary house with a spectacular view and turned it into a beyond-fabulous home that belongs on the cover of Modern Homes magazine. It has every modern amenity: lovely kitchen, 3 full bathrooms (travertine master bath), whole-house sound system, plasma TVs, fitted closets, huge deck with hot tub. (My folks would be amazed to see it!) After we took the tour, he was happy to tell us how much the renovations cost. He spent £250,000, plus another £50,000 on furniture etc. That's in addition to the purchase price of the house.
He evidently has a very good job, and probably bonuses, but admitted he was mortgaged to the hilt and maxed out on credit cards. I would love to live in that house, but not if I couldn't sleep at night for worrying what might happen if I lost my job... (Been there, through a couple of reorgs.)
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