Mis-sold endowment policies now even weaker, home possessions to rise to new record levels

Millions of people were mis-sold endowment policies in the 1980s and 1990s, often being told that endowments were ‘guaranteed’ to pay off their home loans. Yet, only 1.8million people have received any compensation.

Now, in wake of the current crisis in the financial markets, endowment policy holders are about to be hit again. Over 4 million homeowners will not be able to pay off their morgages, and a third of those who try to switch to repayment morgages are set to be refused loans by the belt tightening banks.

A little like closing the barn door after the horse has bolted, banks are now enforcing stringent lending rules and clamping down on credit availability to people who don’t satisfy the new lending criteria.

Eight out of ten endowments fail to cover the full morgage, so homeowners will be left to pick up the pieces. And since it’s now going to be harder to get a loan, your house becomes in danger of being repossessed. Home repossessions are expected to rocket to record highs in the coming months. just more fallout from the corrupt debt as money system forced on us by the central banks.

Does the Fed rate cut mean it’s still our responsibility to fuel the economy by spending?

You couldn’t make it up! The Fed cuts interest rates to help keep the credit bubble afloat, but we all know it has to bust sooner or later.

Sure, some stupid individuals will use the lower interest rates to run up even more debt, whether on credit cards or mortgages. But anyone with any sense knows the merry go round has stopped, and will use the rate cuts to reduce their outgoings so they can exit the credit market as soon as possible.

The central bankers who have created the credit bubble and flooded the world with easy cheap credit have fallen for their own sales spin and are inflating the bubble one last time.

Sensible people will stop borrowing and spending and use the lower interest rates to rebuild their personal finances and reduce their level of personal debt. However, if more people turn out to be sensible than the banks hoped, then consumer spending and thus the economy will not bounce back, and recession becomes increasingly likely.

The Central Banks are like a used car salesman trying to flog an old heap that we’ve all watched break down and have to be towed to the lot. It’s been washed and polished but it’s still the same vehicle. Would you buy more credit from these people? Their own version of Frankenstein’s monster, the credit bubble, has turned around and attacked tits creators.

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