A Financial Weak-End?

After a week without football or any reasonable transfer speculation at The Valley, I've had to do something that fills me with dread this weekend – return to the real world.

And what a week it's been – since the 1-1 draw at Vicarage Road, share prices have plummeted world-wide, our Home Secretary is to scared to walk the streets, and our Darling still hasn't managed to offload Northern Rock.

In a nutshell, the financial situation for the country isn't looking too rosy. That is, of course, unless your exposure to the rose industry has been limited to the deaths-door reject blooms on a petrol station forecourt.

The problem is a simple one really – as a nation, we've been spending money we don't have. Over the last 10 years, interest rates have been historically low, banks have been all to happy to lend, and consumers have been more than ecstatic to spend. How many of us have been guilty of jumping at 0% interest credit cards, only for the overall debt to rise? (Hand help up...)

The housing situation has worsened things further. We're constantly having it drummed into our skulls about how we all need to be home owners, and how important it is to have a mortgage. This, combined with low interest rates and dubious practices from some mortgage providers, has led to many desperate people being in a situation where nearly half their income is paying the mortgage.

People have also been taking money out of the 'imaginary' future value their property may have – if the values don't continue to rise, then they have to pay the money back. Yet, if the prices do continue to rise, the cycle is almost certainly doomed as salaries aren't matching the increase. How are first-time buyers going to prop up the pyramid?

And, to top it all off, people aren't saving so as a result can't afford the huge deposits necessary. When a bank like Northern Rock can't afford to borrow money to issue a mortgage, it shows something is seriously wrong.

Doesn't make for pretty reading does it? People have been calling for the Bank of England to issue rate cuts like the 1.5% cut in the US, but this won't help – making lending cheap again will only amplify an already bad situation, as people will simply spiral into further debt.

Yep, I'm afraid that times don't look good in the financial world at the moment.

Although I mention 'people', it's unfair blame the situation on consumers - we can only react to the conditions put in front of us. Unfortunately, a combination of Gordonomics and greedy, short-termist elements of the financial industry seem hell-bent on doing their best to serve up a dish that can only collectively screw us up.

There is one thing that can soften the blow from all of this though.

If we sing our bloody arses off for the rest of the season, there's always that free Premiership season ticket to look forward to in August...     ;)