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.
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