Been a while since I posted something worthy of note.
A few points, firstly Mr Brown our Prime Minister. Now I dont recall voting for this guy at the last election, in fact I didnt vote for this party, but thats by the by. How can we as a country be brought to our knees by the borrowing this "unelected Prime Minister" has agreed to.
So lets add everything up over the past, include both world wars and every subsequent goverment since the first world war. In one swoop, we as a country have saddled ourselves with more debt than the TOTAL of all the previous governments PUT TOGETHER. We only finished paying off the USA for the second world war debt the united kingdon borrowed from them a few years ago.
Now, onto life in the recession. I was sad to see that my old company (bank) has finally gone to the wall and been swallowed up by another happily agreed to by the government and FSA. However, not 2 years ago a few banks were stopped from doing exactly the same thing as it would affect "market competition". Uhm, so lets think about that. We cant have banks taking over each other because it affects market competition and consumer choice, however, we can "knee jerk" into agreeing bank takeovers within a few hours when the markets get difficult. Surely double standards?
Well maybe this was done to stop a run on the banks because they were over extended and didnt have enough capital reserves? Sounds plausible doesnt it? however, the Financial Services Authority is responsible for ensuring that the banks adhere to the minimum funding requirements (liquidity). And waht was the FSA doing? none of us know for sure do we. - headless chickens come to mind.
So why is this important? well the government took...no removed this fundemental audit/check practice away from the Bank of England and gave it to the newly formed FSA. Uhm... ok, so heres my simple analogy.
Take an MOT check and station. its like saying "hey, you guys dont need to undertake an MOT on cars anymore, instead we want you to just fill up the wash bottles each time they visit, MOTs will now be undertaken by the local car wash center. Yep, the car wash knows as much about engines and car worthyness as the FSA knows about Banks and the financial instruments they use to run their business.
Monday 27 April 2009
Tuesday 3 February 2009
Bailed out opportunists
Well I cant stop thinking that some people are really taking advantage of the current circumstances. Im not overly bothered at the opportunists, what Im bothered about are the people who have been bailed out still making money at the expense of the tax payer.
The Northern Rock - Taken into the government in 2008 (Nationalised), to save it going to the wall. This state owned business now has the highest repossession rate of any of the main stream banks and building societies. Brown says "we will do everything we can to help those people struggling through the current global credit crises" - yes, we will repossess your house, thats very supportive isnt it.
How do you deal with a goverment that is so blatantly untruthfull about this?
The Northern Rock - Taken into the government in 2008 (Nationalised), to save it going to the wall. This state owned business now has the highest repossession rate of any of the main stream banks and building societies. Brown says "we will do everything we can to help those people struggling through the current global credit crises" - yes, we will repossess your house, thats very supportive isnt it.
How do you deal with a goverment that is so blatantly untruthfull about this?
Sunday 11 January 2009
Car finance companies needing help?
The UK car industry does not need a bail-out but the government is considering help for manufacturers' financing arms, Lord Mandelson says.
He told the BBC that the industry faced problems raising finance to help would-be buyers fund new car purchases.
Lord Mandelson said the Treasury was considering offering commercial loans or loan guarantees to help the industry "bridge a very difficult period".
Meanwhile, an industry body confirmed it was in talks with the government.
"We are in active discussion with the government to ensure that motor finance companies, along with other non-bank lenders, have access to the relevant government liquidity and guarantee schemes, so that they can get the funds they need to serve their customers in the motor and other markets," Stephen Sklaroff, Director General of the Finance and Leasing Association, told the BBC.
Lord Mandelson said the credit crunch has meant that manufacturers' car financing arms could not raise the money needed to fund new car purchases.
"No car company is asking for a bail-out, they may be asking for help in lifting their motor finance arms, needed to fund new car purchases," he told Radio 4's The World At One.
"And it may be that in one case, commercial loans or loan guarantees from the government to assist them to bridge a very difficult period (may be needed) but that is not what I would call a bail-out."
He said both he and the Treasury were in close contact with the car companies about this issue.
Nissan announced on Thursday that it would cut 1,200 jobs.
More jobs to go?
A spokesperson for the Society of Motor Manufacturers and Traders welcomed Lord Mandelson's remarks but said that help in providing car financing was just one part of a series of measures it was seeking.
As well as easing access to finance, the SMMT is calling on the government to help companies to retain skilled employees and maintain investment in new technology and provide incentives to encourage the take up of new vehicles.
John Lewis, chief executive of the British Vehicle Rental Leasing Association, welcomed any measures to improve access to credit but said they should apply to all providers of car loans not just manufacturers.
"Any help with access to finance must not be limited to car manufacturers alone. It should be used to improve access to all routes of car finance, for new and used cars," Mr Lewis said.
Lord Mandelson said that the car industry was an "essential and permanent" part of the UK's manufacturing but warned that the industry must adapt to leaner times.
While demand for cars had been hit by the recession, he said that demand may never get back to previous levels.
He did not rule out further job losses in the UK car industry but said that white-collar positions would be more likely to go than manufacturing jobs.
In the US, as part of its rescue of the car industry in December, the government has unveiled a $6bn (£4.1bn) rescue package for GMAC - General Motors' troubled car loan arm
He told the BBC that the industry faced problems raising finance to help would-be buyers fund new car purchases.
Lord Mandelson said the Treasury was considering offering commercial loans or loan guarantees to help the industry "bridge a very difficult period".
Meanwhile, an industry body confirmed it was in talks with the government.
"We are in active discussion with the government to ensure that motor finance companies, along with other non-bank lenders, have access to the relevant government liquidity and guarantee schemes, so that they can get the funds they need to serve their customers in the motor and other markets," Stephen Sklaroff, Director General of the Finance and Leasing Association, told the BBC.
Lord Mandelson said the credit crunch has meant that manufacturers' car financing arms could not raise the money needed to fund new car purchases.
"No car company is asking for a bail-out, they may be asking for help in lifting their motor finance arms, needed to fund new car purchases," he told Radio 4's The World At One.
"And it may be that in one case, commercial loans or loan guarantees from the government to assist them to bridge a very difficult period (may be needed) but that is not what I would call a bail-out."
He said both he and the Treasury were in close contact with the car companies about this issue.
Nissan announced on Thursday that it would cut 1,200 jobs.
More jobs to go?
A spokesperson for the Society of Motor Manufacturers and Traders welcomed Lord Mandelson's remarks but said that help in providing car financing was just one part of a series of measures it was seeking.
As well as easing access to finance, the SMMT is calling on the government to help companies to retain skilled employees and maintain investment in new technology and provide incentives to encourage the take up of new vehicles.
John Lewis, chief executive of the British Vehicle Rental Leasing Association, welcomed any measures to improve access to credit but said they should apply to all providers of car loans not just manufacturers.
"Any help with access to finance must not be limited to car manufacturers alone. It should be used to improve access to all routes of car finance, for new and used cars," Mr Lewis said.
Lord Mandelson said that the car industry was an "essential and permanent" part of the UK's manufacturing but warned that the industry must adapt to leaner times.
While demand for cars had been hit by the recession, he said that demand may never get back to previous levels.
He did not rule out further job losses in the UK car industry but said that white-collar positions would be more likely to go than manufacturing jobs.
In the US, as part of its rescue of the car industry in December, the government has unveiled a $6bn (£4.1bn) rescue package for GMAC - General Motors' troubled car loan arm
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