So it's official then, some clever experts have just discovered I've got less left in my pocket to spend on non-essentials than I had 17 years ago. Of course I'm very grateful to those experts for telling me what I already knew, but they've just spent some of their pocket money unearthing some horrid intel. The share of my income to spend on 'luxuries' has plummeted in the last 6 years of labour rule in the UK. And they reckon there's a lot worse to look forward to. Apparently food prices are going to rise at 6% p/a for a good few months, and utilities by 10% p/a in the second half of this year.
But the government would have us believe that inflation is running at only 2.5% p/a. I don't think it's been that low for ages, but then you can make statistics say whatever you want if you ask the right questions.
No one asked me what the rate of inflation was. I suspect they knew what the answer would have been and didn't want to spoil their own stats.
No wonder the Beckam's moved out. I see Posh was not smiling for the cameras again in New York.
I know someone who just got some extra pocket money. Those boys and girls in the Financial Services Authority have just shared almost 14 million in bonuses (an average of 5000 for each of them) because they've been doing extra work. No doubt that's why they missed the risky lending policies of Northern Rock with the result that some of what could have been my pocket money has been used to bail it out
It's not all bad news though. The top Los Angeles cop (Bill Bratton) is going to be telling new London mayor Boris how to cut crime rates. I hope that doesn't mean more cameras, because they don't work. They only help to solve 3% of street robberies and the bad lads just assume they aren't working, so they're not even a deterrent. And they cost billions, of what might have been in my pocket.
Apparently Gordon Brown has decided he's not going to charge us for rubbish disposal. I assume someone told him we already do pay through our council tax.
It's a funny old life! I think I'll just bury my head in a book.
Wednesday, 7 May 2008
Thursday, 1 May 2008
What Recession?
Those of you who were kind enough to read my intel "Clever Bankers" of the 29th. April 2008 will recall I said:
"The reduction in lending means property prices will find their own level, as they always do; a level which will be more consistent with prudent borrowing and not inflated by high risk lending."
And now we see that property prices in the UK have fallen for the first time in years.Whilst I feel very sorry for those who are desperate to climb on the property ladder and can't get a mortgage during the current lending squeeze (aka Credit Crunch) I would ask them just to consider whether they really want to borrow more than they can sensibly afford to repay.Even the banks have decided they can't trust each other to repay loans. It wasn't long ago they happily lent each other OUR money, secured against OUR mortgage debts.
I'm inclined to the view that although the Bank of England may well need to drop interest rates further to aid economic recovery, I fear that what they are doing may be too little and too late.
The USA just announced it is not officially in recession, but it was a darn close run thing, and it seems the main reason was that industry has been stock piling, but they can't do that for long.They haven't managed to stave off recession yet, and in the UK the same decisions are being made to halt the slide. But if those steps are not working in the USA why should they work here?
Mind you I can't see the Britsh taxpayers being sent a tax rebate to go shopping with, not when the government wants to abolish the 10% tax rate, hitting the poorest the hardest.And will the Americans go shopping, or will they pay off their debts? I think I might have a fair guess at the answer to that one. I know what I'd do. We all look after number one first, right.Who was it said charity begins at home?
What do us Brits say? It's something like if they catch a cold in America then we'll be sneezing soon.Even my old Mum (God rest her soul) always used to say "It's snowing in America, we'll get that soon." It was nonsense, of course, but it's far more likely to apply to the economic situation.
Looks like there's a bit of drizzle falling at the moment; but I just hope you've all got some rainy day money, because I reckon it's going to be pouring soon.
"The reduction in lending means property prices will find their own level, as they always do; a level which will be more consistent with prudent borrowing and not inflated by high risk lending."
And now we see that property prices in the UK have fallen for the first time in years.Whilst I feel very sorry for those who are desperate to climb on the property ladder and can't get a mortgage during the current lending squeeze (aka Credit Crunch) I would ask them just to consider whether they really want to borrow more than they can sensibly afford to repay.Even the banks have decided they can't trust each other to repay loans. It wasn't long ago they happily lent each other OUR money, secured against OUR mortgage debts.
I'm inclined to the view that although the Bank of England may well need to drop interest rates further to aid economic recovery, I fear that what they are doing may be too little and too late.
The USA just announced it is not officially in recession, but it was a darn close run thing, and it seems the main reason was that industry has been stock piling, but they can't do that for long.They haven't managed to stave off recession yet, and in the UK the same decisions are being made to halt the slide. But if those steps are not working in the USA why should they work here?
Mind you I can't see the Britsh taxpayers being sent a tax rebate to go shopping with, not when the government wants to abolish the 10% tax rate, hitting the poorest the hardest.And will the Americans go shopping, or will they pay off their debts? I think I might have a fair guess at the answer to that one. I know what I'd do. We all look after number one first, right.Who was it said charity begins at home?
What do us Brits say? It's something like if they catch a cold in America then we'll be sneezing soon.Even my old Mum (God rest her soul) always used to say "It's snowing in America, we'll get that soon." It was nonsense, of course, but it's far more likely to apply to the economic situation.
Looks like there's a bit of drizzle falling at the moment; but I just hope you've all got some rainy day money, because I reckon it's going to be pouring soon.
Wednesday, 30 April 2008
Congratulations
To Ali Carter on his 147 clearance at the snooker world championships at The Crucible yesterday. It's his first in tournament play, and the second at this year's tournament, and that's never happened before.The Bookakers know a thing or two though. They immediately slashed the odds on a third from 200/1 to 7/4.
And you have to feel sorry for Ronnie O'Sullivan. Having completed his 147 the day before and being in line to pick up GBP157000 he announced he'd be buying a Bentley convertible. Now he's got to share the prize money one assumes he'll have to cancel the order.
And you have to feel sorry for Ronnie O'Sullivan. Having completed his 147 the day before and being in line to pick up GBP157000 he announced he'd be buying a Bentley convertible. Now he's got to share the prize money one assumes he'll have to cancel the order.
Really clever Bankers
I see the Board of HBOS took a hammering from the shareholders at the AGM.Poor HBOS are strapped for cash evidently.The shareholders didn't seem to think much of the rights issue announcement.
How could they justify their huge salaries?
Were those responsible for the high risk lending strategies going to lose their jobs?
The Chairman's response?
He holds 400,000 shares and will take up the rights issue. He has every confidence in the company.
Very interesting, and with his salary no doubt he can afford to buy some more shares.
But how about answering the question?Will anyone lose their job?He didn't get around to that apparently.
So it seems more and more that the old idea of accepting responsibility for your own actions really has gone out of the window.The justification usually seems to be; I got us into this mess so I'll stay on, continue to be paid a vast salary and try to get us out of it.After all, I'm the man/woman best placed to solve the problems which I created.
It occurs to me, on that basis, that the best way to job security is to make a complete hash of your duties.Be a failure and have a job for life.
Don't know about you, but I'd be willing to give it a try; it can't be that difficult can it?
It seems the converse is true as well. Do a half way reasonable job and you'll be sacked. Sven Goran Erickson is just discovering that apparently.
But then what do I know?
How could they justify their huge salaries?
Were those responsible for the high risk lending strategies going to lose their jobs?
The Chairman's response?
He holds 400,000 shares and will take up the rights issue. He has every confidence in the company.
Very interesting, and with his salary no doubt he can afford to buy some more shares.
But how about answering the question?Will anyone lose their job?He didn't get around to that apparently.
So it seems more and more that the old idea of accepting responsibility for your own actions really has gone out of the window.The justification usually seems to be; I got us into this mess so I'll stay on, continue to be paid a vast salary and try to get us out of it.After all, I'm the man/woman best placed to solve the problems which I created.
It occurs to me, on that basis, that the best way to job security is to make a complete hash of your duties.Be a failure and have a job for life.
Don't know about you, but I'd be willing to give it a try; it can't be that difficult can it?
It seems the converse is true as well. Do a half way reasonable job and you'll be sacked. Sven Goran Erickson is just discovering that apparently.
But then what do I know?
Clever Bankers are at it again.
Those clever bankers are at it again. If you're thinking of going abroad on holiday this year take plenty of cash with you. Why?
The clever bankers have come up with a great new idea to combat credit/debit card fraud...a new computer programme to spot unusual transactions on your account.
Great idea, except the computer doesn't know it's you on holiday just doing what the clever bankers want you to do , using your plastic to rack up a load of extra charges to add to their profits. So what does the computer do when it spots the pending transaction? It blocks your account.
Good news eh?
You've just enjoyed a great meal, had a bottle of wine, a few brandies etc. and now you can't pay for it, you can't speak the local language, you've got a couple of quid in your pocket and its midnight in the UK. Even if you can persuade the angry restaurant owner to let you phone your bank, assuming you have the number handy, the clever bankers won't be there for a few hours. They're either tucked up in bed or out spending their bonuses.
And when you do make contact with those clever bankers what do they tell you?
That it's your fault because you didn't tell them you were going away. You told the milkman, the paper boy and the neighbours.But even if you thought of telling the clever bankers you probably gave up after 10 minutes in the queue.
What don't they tell you?
That even if you had forewarned them they couldn't have told the computer, so it would have made no difference.
So, take CASH or you risk getting stranded at the start of your holiday with no access to your own money.
Then your only problem will be to make sure your cash isn't stolen. Remember those days when someone in your party on the beach couldn't swim because they had to guard the cash?
Those clever bankers have brought us full circle.
The clever bankers have come up with a great new idea to combat credit/debit card fraud...a new computer programme to spot unusual transactions on your account.
Great idea, except the computer doesn't know it's you on holiday just doing what the clever bankers want you to do , using your plastic to rack up a load of extra charges to add to their profits. So what does the computer do when it spots the pending transaction? It blocks your account.
Good news eh?
You've just enjoyed a great meal, had a bottle of wine, a few brandies etc. and now you can't pay for it, you can't speak the local language, you've got a couple of quid in your pocket and its midnight in the UK. Even if you can persuade the angry restaurant owner to let you phone your bank, assuming you have the number handy, the clever bankers won't be there for a few hours. They're either tucked up in bed or out spending their bonuses.
And when you do make contact with those clever bankers what do they tell you?
That it's your fault because you didn't tell them you were going away. You told the milkman, the paper boy and the neighbours.But even if you thought of telling the clever bankers you probably gave up after 10 minutes in the queue.
What don't they tell you?
That even if you had forewarned them they couldn't have told the computer, so it would have made no difference.
So, take CASH or you risk getting stranded at the start of your holiday with no access to your own money.
Then your only problem will be to make sure your cash isn't stolen. Remember those days when someone in your party on the beach couldn't swim because they had to guard the cash?
Those clever bankers have brought us full circle.
Tuesday, 29 April 2008
Just how clever are the Bankers?
So Mortgage Application rejections in the UK are up 40% compared to a year ago. Apparently Mortgage lenders have decided to be more careful not only about who they lend to , but how much they lend. Whereas 12 months ago they would happily lend 100% or 105% of the value of the property, now they want to see a large deposit. Why the sudden change?
Well, those clever bankers have just discovered that all those high risk loans are just that, high risk. I'm sure most of us could have told them that, without needing to be a clever banker. The Bank of England say they hope things will return to normal soon.
BUT...what's normal?
If normal is to go back to the lending policies of 12 or 18 months ago then God help us all.
I have no doubt that bricks and mortar are a good long term investment; BUT long term, not short term. Don't get me wrong, I have every sympathy for those who borrowed big, and probably more than they should wisely have done, and now see their mortgage debt larger than the value of their property. But unless they were hoping for a fast turnover and to make a quick profit why does it matter? It will resolve itself with time, as long as they can keep up the payments.
If they bought with the idea of making a quick profit then they shouldn't complain. They made a business decision, weighed up the risks and went ahead. No different to buying stocks and shares.
The reduction in lending means property prices will find their own level, as they always do; a level which will be more consistent with prudent borrowing and not inflated by high risk lending. Isn't it clear now that the people responsible for the rapid rise in property prices over the last few years are those clever bankers.
Well, those clever bankers have just discovered that all those high risk loans are just that, high risk. I'm sure most of us could have told them that, without needing to be a clever banker. The Bank of England say they hope things will return to normal soon.
BUT...what's normal?
If normal is to go back to the lending policies of 12 or 18 months ago then God help us all.
I have no doubt that bricks and mortar are a good long term investment; BUT long term, not short term. Don't get me wrong, I have every sympathy for those who borrowed big, and probably more than they should wisely have done, and now see their mortgage debt larger than the value of their property. But unless they were hoping for a fast turnover and to make a quick profit why does it matter? It will resolve itself with time, as long as they can keep up the payments.
If they bought with the idea of making a quick profit then they shouldn't complain. They made a business decision, weighed up the risks and went ahead. No different to buying stocks and shares.
The reduction in lending means property prices will find their own level, as they always do; a level which will be more consistent with prudent borrowing and not inflated by high risk lending. Isn't it clear now that the people responsible for the rapid rise in property prices over the last few years are those clever bankers.
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