recession on the way???

[indebtforever]

Shares tumbled after a sharp overnight fall on Wall Street added to worries over the health of the UK economy.

The FTSE 100 Index dipped as low as 5385.7 - taking London into bear market territory - before rallying to stand 69.1 points lower at 5443.6 by lunchtime.

The mid-morning recovery reflected a surge for retail shares, in particular Marks & Spencer after speculation of bid interest in the chain. The stock, which dived last week in the wake of a profits warning, lifted as much as 7% and later stood 10.75p higher at 227.75p, a gain of 5%.

Other retailers battered by fears over the consumer spending slowdown followed M&S higher, with Next up 16p at 716p and Morrisons 3.25p stronger at 259.25p. Currys owner DSG International lifted 1.5p to 36.25p in the FTSE 250 Index.

At one stage there were no blue-chip stocks in positive territory as investors dived for cover in the wake of more worries about the financial sector.

Speculation that two American mortgage providers might have to raise fresh capital and make further write-downs triggered the sell off on Wall Street.

London's banking stocks were sharply lower in the wake of the rout, with Royal Bank of Scotland, which was downgraded by Cazenove, off another 4.2p at 196.7p and Lloyds TSB down 9.25p at 286.25p.

Bradford & Bingley continued to cause concern, with shares down another 17%, or 7p to 35p, as one analyst suggested the stock was now effectively worthless.

Government figures showing the average cost of a home at a 26-month low in May added to housing market gloom, with housebuilder Persimmon also unveiling a steep sales fall and 1,100 job cuts. Shares in the FTSE 250 firm were 3.75p cheaper at 224.25p. Fellow second tier property group Savills was also in the red after reporting a 45% drop in London residential property transactions. Shares dropped 9% or 20.25p to 195p.

Building supplies group Wolseley was among other major fallers, down 14.75p to 296.25p, with B&Q owner Kingfisher 1.3p worse off at 97p.

[Maz]

I have just heard on the news that building companies are making lots of staff redundant because there isn't the demand for properties now. I notice that it is a problem all over Europe. I have debts from my country in Euros included in my IVA here so it's happening everywhere.

Maz [V]

[chris.g]

Hubby's just dropped the bomb shell that he'll be surprised if he still has a job by the time we go on holiday....1st September! He's a bricklayer and it is getting very,very tight.

[NotSoBrightSpark]

Hello everyone,

I'm a sparky and our company have laid off three lads in the last month.There could well be more to come...or go as the case may be.

Some big housebuilders now,are building one house at a time,selling it and then proceeding to build the next house.Not building dozens at a time as they normally would.

Very worrying.

[Soulgrowth]

"Firstplus" (loans company) are not taking any new business and laying staff off. Bailiff on the news tonight says he hasn't been as busy as this since he started 8 years ago.

Gordon Brown says we've all got to cut down on food waste ... over a huge meal at the summit.

Does anyone else feel that we have a PM who is not in touch with the real world as being experienced by the real people out here?

Debbie

[chris.g]

There's a plot which was bought for development near where we live, it used to be a health centre. It was to build modern apartments. The groundworker started but never finished. It's now completely a work-free zone and even the sales office is not even open. It's been like that for around 2 months. Can't see any progress in the forseable future. People don't have the money to buy houses, even on the news it stated that mortgage providers were pulling out of deals because of the fall in prices. Obviously this has a knock on effect with everyone who is involved in the housing industry, from the top to the bottom.

[Soulgrowth]

This sounds like familiar territory ... my ex-husband was ran his own carpentry business working on the buildings ... our marriage broke up partly due to the stress involved in the last property building crisis around 1992 [:(]

Debbie

[Skippy]

While we have a PM who can't drive and admits he's never been in a supermarket or bought a pint of milk then what hope is there for us?!?

I keep worrying because Dave is self employed, but touch wood, at the moment he's got more work than he can cope with. I think that it's because he's cheaper than the big companies (he's a handy man and does plumbing, painting and decorating etc) so people are more likely to use him. I do worry that it might dry up though.

[Shining]

My husband is in the building trade, fortunately, no redundancies yet as they are grant work based so unless the grants dry up they should be ok.

Was talking to a friends partner today though and he is a Finanacial Advisor he said he normally dealt with 200+ mortgages a month, last month 50, he is thinking of joining the Prison Service ! He was telling me I need a job that is not dependant on people spending money.

I work in a college and the LSC have withdrawn all part L2 funding from August 1st, for us that is a huge blow.

[johnt]

Well I've been doom saying for over a year on this forum.

First Plus have shed 3/4 of it's work force, and will be taking no new business from August, retaining an operation to maintain it's current customers under their aquisition by Barclays.

Nearly 10,000 people in the building trade have lost thier jobs in the last four months.

Global recesion is now as high as it was in the 70's and food and crude oil prices are rising sharply.

Being in an IVA, has enabled me to see my past life as excessive.

I've really begun to turn my life around.

I've sold my car, so walk to work. I'm now fitter as a consequence.

I've lost two stone in weight in just ten weeks.

I come home from work, and now watch less television and have personnal projects that I work on. The satisfaction from this is far greater than buying some tat that I've been seduced by on TV.

I now consume less, and feel healthier, happier and more focused than ever, and at the age of 40.

My advice, use this time to revalute your life. Start giving back and stop taking.

[Skippy]

Well done johnt, but unfortunately we can't all do that - I can't give up my car. I work about 4 miles from work, but it wouldn't be safe for me to walk it. Work keep promising to put a cycle rack in, but no sign of it yet! Even then it would be difficult to give up my car - although Dave has one it's his work vehicle and always full of rubbish, sorry, essential equipment for his job!

[kal]

My husband is in the contruction trade too (steel fixer), and I am keeping everything crossed that he won;t be laid off (he too is self employed).
We cannot get rid of our car, he needs it to get to work - and getting rid of mine would make no difference to me...I work from home so don't need to drive.
It's all very well saying to change our lifestyle, but most people on here will have already done that by being in an IVA...what worries me is that if one of us is to lose our jobs, then how do we pay our IVA?
k.

[johnt]

My husband is in the contruction trade too (steel fixer), and I am keeping everything crossed that he won;t be laid off (he too is self employed).
We cannot get rid of our car, he needs it to get to work - and getting rid of mine would make no difference to me...I work from home so don't need to drive.
It's all very well saying to change our lifestyle, but most people on here will have already done that by being in an IVA...what worries me is that if one of us is to lose our jobs, then how do we pay our IVA?
k.

I can, hand on heart say that my IVA, and my wife's has been completely liberating. It has forced us to completely re-evaluate how we live.

I wasn't expecting this, and prior to taking it out last year, our lives were obsessed by debt and regrets.

Now we consider the things in life that really matter, and buying the latest fast car, or that £200.00 dress or suit is not one of them.

I live two miles from work, and walking, (my wife now cycles, and loves it) is fantastic. I would never go back.

The walk is good for me metally, it gives me time to reflect on my life, and consider what I want to achieve.

As I say really look at your own life, and chuck out not just the material junk, but all the emotional stuff which is causing you not to live to your full creative potential. The chances are what you can achieve is so much greater than what your friends or the wider culture that you live in thinks you can.

[luluj]

Working 25 miles away from home each day, with no public transport to the town I work in from where I live gives me no option other than to drive - likewise hubby works 12 miles away and due to hrs worked has to drive!

Being in an IVA almost makes the possibility of recession for all manageable as we know we can live within the I&E prescribtors and still have a "simple" quality of life!

Glad we came to our senses when we did last year - I am sure the IP's will be very busy this year!!!!