‘Finance’ Archives
Public Sector Pensions Fun!
My main interests have always been politics and financial services. I have had many messages reminding me that I have not indulged in any "bank bashing" for some time. I predicted the 2008 collapse of the banking industry and once current "stress tests" have been applied to our banks, I anticipate the collapse of yet more of the little darlings - but only those who are truthful and who are not continuing to hide their potential and actual bad debts. The banker's favourite phrase " We [...]
FCNK – Fur Coat, No Knickers
British politics are cyclical and there are two views as to the nature of the cycle. One is that Labour is in power for a bit and then the Conservatives come along with lots of shovels and clear up the mess. The other view is that it is Labour politicians who wield the shovels after the Conservatives' turn. There is another other great political constant , not-only in British politics but worldwide. Ultimately, all party leaders fail - as do their parties. Then the other lot make an [...]
Halliburton, BP, Obama?
"This is what you call milking an oil spill" The first thing that our television companies do when there is a disaster somewhere in the world is to send a team of reporters, maybe set up a studio and pump bulletins at us. They search for human interest stories to titillate us as we "ooh and aah!" at the tragedy of it all. The Gulf of Mexico oil spill , if the American version of events is to be believed, has affected thousands of inhabitants, ranging from fishermen and hoteliers to [...]
Next batch of Peers
Published by No 10 Downing Street 28 May 2010 Peerages, honours and appointments The previous Prime Minister (the Rt Hon Gordon Brown MP) undertook a process to recommend to the Queen new party-political life peerages. This consisted of working peers from each party and, as is customary at the end of a Parliament, a dissolution list for former MPs. The Queen has been graciously pleased to signify Her intention of conferring Peerages of the United Kingdom for Life upon the [...]
Send out the Clowns
Your Prime Minister Gordon Brown and the New Labour inepts are very fond of statistics. Most of the time, their statistics are "weighted", "massaged" or wrong. Their presentation is often designed to mislead. Here are some simple numbers which clearly show New Labour's main "successes". They came to power in 1997 and that is probably the best starting point: 1. INFLATION. 1997 2.5% , 2010 3.5% 2. UNEMPLOYMENT.1997 2million , 2010 2.5million 3. NATIONAL DEBT. 1997 42% of GDP, [...]
Goldman Sachs on the run
"Hey wise guy! Wanna buy any synthetic collateralised debt obligations?" Over the last few years, I have written a great deal about Goldman Sachs and its Svengali-like hold over successive U.S Governments. Some of what I've written remains on this site. Hopefully, President Obama's current initiative, in tandem with the SEC is the dawn of a new relationship between Government and the banking industry. It seems that the "minders" Goldman Sachs used to have at U.S. Government level [...]
Want £250K?
I have spent over a year looking for a good solid local company in which to invest on behalf of a client. I have looked at woodworkers, builders, cooks, a fancy goods seller, computer menders, even a plumbing company and an antiques business. All were ordinary people, mostly from the artisan classes who had decided to "have a go" with their own business. The whole exercise has been very hard work, I have met some interesting people but I am still looking. My modus operandi are always [...]
While Rome Burns
A million-and-one things are distracting our politicians - naturally-occurring disasters such as the Chile tsunami, the Haiti earthquake, Global Warming-induced freezing weather. Then there are exceptional occurrences such as the Vancouver Games, the death of Michael Foot, the war in Afghanistan, a non-domiciled Lord and the impending United Kingdom General Election. All are events which have provided many opportunities to ignore the one great constant, the real "elephant [...]
New Predictions 2010/2013
Alistair Darling has never looked so relaxed. David Cameron observed that if Darling and and the Prime Minister sat any closer to each other on the front bench yesterday, they would be kissing. The Labour front bench has never looked so "at ease" and with good reason. There's absolutely NOTHING that they can now do about the economy, NHS or any of the other major conundrums of State. They are in a good place and enjoying the rapid approach of Spring and what it will bring - the dissolution [...]
Double economic Trouble
The UK's 2009 budget deficit is the worst in its history and the present government is doing very little to alleviate the potential problems and collateral damage because it is playing a waiting game. Instead of taking hold, the government is still bleating about bankers' bonuses with most of its energies focused on an impending General Election. It is very doubtful whether the government has finished handing money to the banks and it is very likely that the UK budget deficit as well [...]
Drain the swamp first.
Investment Banking The British economy is not is very good condition and we know that the unemployment trend is still upwards. Retailers are continuing to shut down and the manufacturing sector is still in a comparatively unhealthy state. Does it not therefore seem strange that one sector of the economy - the one that doesn't actually MAKE anything is posting profits in BILLIONS? It is said that if one sector of the economy is delivering improbable margins, then something is wrong. The [...]
Barclays rip-off?
London's Institute of Directors (IoD) has completed a survey in order to see for themselves how the claim by the banking industry that it is lending freely, stacks up in the real world. The Chancellor and Prime Minister have both asked the bankers to do us all a great favour and please lend money to commerce. The bankers all tell us that they are lending. So who is right? The IoD's figures tell us that as recently as 2001, 45% of its members financed their businesses through bank [...]
It’s all Greek to me.
"We is well an' truly init, matey peeps." We may be thinking that Hector Sants' late-night departure from the FSA is today's most important financial news but it seems as if a more worrying storm is brewing on the financial markets - and it will eventually affect us. The euro is under siege -- and the next few days will be crucial. Financial markets are betting heavily that Greece's crushing debt could drag down the entire eurozone, and that could force reluctant EU leaders into an [...]
Straw-Clutch Economics
"I don't think so!" The Office for National Statistics (ONS) tells us that during October, November and December 2009 (Q4), the economy, or more specifically UK's production and service sectors grew by 0.1%. That's the good news. The bad news is that during the whole of 2009, our Gross Domestic Product (GDP) fell by a record 4.8%. You have to remember that the above figures are derived statistically with a plus/minus margin of error and in addition, that today's announcement is not [...]
Obama and the Banks.
"OMFG!" The last twelve months have seen bank profits reach pre-crunch heights. There is no doubt that the banks were able to continue their activities only because of the intervention of world's governments who have pumped eye-watering amounts of liquidity (money) into the banking system. Now that the banks are producing a surplus, they have four very clear choices: 1. They can increase lending (on reasonable terms) to commerce and business. 2. They can place the money in their reserves - [...]
Where we want to be
I was doing a bit of research and came across this document: It may look like hard work but it contains some very interesting information. The sort of information that is always available somewhere but which is not always publicised. The document is in pdf format. Please click on the link below. public finances
Marlborough Cadbury
There's been a bit of a fuss about good-old Cadbury's being acquired by Kraft. After all, a British Institution owned by a Johny-foreigner cheesemaker - what's the world coming to? But it's worse than you could possibly imagine! Kraft is owned by Philip Morris. Yes, the same Philip Morris that makes Marlborough cigarettes. Philip Morris acquired Nabisco Foods on 2000 and merged Nabisco with Kraft which it had bought in 1988. Philip Morris then changed its name to Altria (presumably to remove [...]
Butterfly Economics
"There's a lot we haven't seen yet." Modern economics thinking should owe as much to Chaos Theory as it does to Keynes or Friedman. Can we therefore assume that the ongoing banking crisis could never have been predicted? If it could have been predicted - who is to blame? Politicians, Accountants, Economists, Bankers? The only thing that most of us know of Chaos Theory is the so-called "Butterfly Effect" and that does indeed lie at the very centre of Chaos Theory. If a system is sensitive [...]
Bank Bonus Farce
Several banks have anticipated the Chancellor's tax-raising exercise and already paid-out bonuses to their people. Others are so cash-rich that they can afford to dismiss Alistair Darling's gesture as the waste of time that it is. The bottom line is that there isn't a single banker who will be affected by the Government's pathetic posturing. Lloyd's yesterday successfully completed its £13.5 billion rights issue and is preparing to pay out its bonus pool in full - with absolutely no [...]
Janet and John Economics
The Chancellor of the Exchequer has been allowing the electorate to believe the fiction of "ring-fencing", consequently, we are beginning to think that the NHS and Education budgets are somehow 'protected'. Unfortunately, it appears that in many respects Health and Education do not need ring-fencing - just propping-up because they are failing. They are not failing because of too little management but because of too much management, too many management accounts and the [...]
Later Darling!
"Mum, I peed in the swimming pool today" Mother: " That's all right Alistair, most people pee in the swimming pool from time to time" Alistair: " Yes, but not from the 10 metre board." Yesterday, Alistair Darling peed over most of us, received a lot of attention and there are still a few droplets on their way down to get us later. Some bankers wish that they'd climbed out of the pool earlier. The attention, headline (and hopefully) vote-grabbing was achieved through the Chancellors [...]
Baldrick Darling
Alistair Darling More headline grabbing from a fatally-wounded Chancellor. Alistair "Baldrick" Darling has yet another cunning plan and it involves those nasty bankers to whom he has handed over all of the family silver - and more besides. Taxing bankers' bonuses is so tragically futile that it transcends politics and lands somewhere between idiocy and comedy. No other politician has the Chancellor's comedy timing. What makes it doubly funny is the certain knowledge that he [...]
A very simple question.
The United Kingdom Government has pumped £850 billion - that's £850,000,000,000 into the country's banking system in just over a year. That suggests that the banks lost, misplaced, gave away or were swindled out of that amount. Or maybe, they never had it in the first place. So, the question is simple: WHERE IS IT AND IS ANYONE LOOKING FOR IT?? As there must be an audit trail which leads to every single penny, perhaps it might be worth spending another £100,000,000 on advisers in [...]
Piggy Bankers
Here's the story so far. A bank lends money to anyone who can steam up a mirror, the Chief Executive is sacked but manages to hold onto a huge pay-off and an eye-watering pension. The government then raids the Bank of England every couple of months and continues to scoop-up more and more money which it tips into the bank by the BILLION. The Investment bankers then take this free money and use it to gamble on the Stock Exchange which is heading upwards because the government is also [...]
What will Abu Dhabi do?
"Ostentatious? Moi?" Everyone is looking to Abu Dhabi to bail out its errant young cousin, Dubai. The fact is that they've already given Dubai £10 billion and are probably now leaving Dubai to sweat it out for a while before they step in. Or should one say - that is what the world is hoping. Dubai was the speculators paradise - until about a year ago. Properties were changing hands "off-plan" at ever increasing prices because at the time - there was nothing but rampant growth fuelled by [...]
FTSE Okey Cokey
There is a lack of economic data or much corporate news from The United Kingdom or or the United States, so the uncertainty in the market is likely to continue but trading will probably be quite volatile. Current volumes will continue to be low although they may pick up when trading begins in the U.S this afternoon. Just a hint of more bad news such as that from Dubai yesterday will be enough to further depress prices. The biggest underlying fear is that Dubai's problems could reignite [...]
Wunch of Bankers
The Walker Review on the corporate governance of banks recommends that FTSE 100-listed banks and the largest building societies should disclose in bands the number of "high end" employees, including executive board members (whose incomes are not a secret anyway). The bands would show the number of people taking home £1m to £2.5m, £2.5m to £5m, and £5m and above. The report recommends that within each band, the main elements of salary, cash bonus, deferred shares, performance-related [...]
Fools Gold?
A couple of days ago, the FTSE 100 index rose by about 2% and gold reached a new high. In addition, the economy shrank by only 0.3%, compared to the experts' predictions of 0.4% and the banks had a Supreme Court judgement in their favour. So why the continuing uneasy feeling? Next year, interest rates are going to rise and that means that borrowers, both corporate and personal will begin to have difficulty in repaying their loans. This means another wave of write-downs for the banking [...]
Transparency?
There is every likelihood of yet another banking scandal and it seems that yet another piece of the banking jigsaw has fallen into place. This particular piece indicates that at least two banks were near-bankrupt at the end of 2008. Not just "in trouble" but BUST. The Bank of England extended secret emergency financing to Royal Bank of Scotland and to HBOS during the banking panic last September and October - without telling the taxpayer or shareholders. Lloyds shareholders were being [...]
Eliot’s Mess
Financial Services Authority So the toothless old tiger that is the Financial Services Authority is going to be ripping up the contracts of those investment bankers who are taking unacceptable risks. More empty gesture politics from Gordon Brown and his band of drowning funsters. Not so many years ago, professional investors, fund managers, hedge funds and even those City screen monkeys who are now being targeted were investing in a series of investment "instruments" which "spread risk". [...]
What economy?
Mervyn King and friend This week, Mervyn King, the Governor of the Bank of England made a very muted, cautious and quite frankly, borderline-pessimistic statement on the state of the economy - and he was right. There is a long way to go. The banking system is still on life-support, courtesy of the Treasury and the Bank of England. At some time in the not-too-distant future, a decision will have to be made whether to continue with the treatment or whether to switch off the [...]
IPSA shame
THE NAUGHTY MAP OF MPs' EXPENSES Click on the map to get details of your MP's expense claims between April 2007 and March 2008 The Kelly Report on MPs' expenses has been passed to the Independent Parliamentary Standards Authority (IPSA) which is headed by Professor Sir Ian Kennedy. Bureaucracy is once again firmly in the driving seat and it now seems that the Kelly Report is about to be mutilated and red-pencilled by academic lawyer, Sir Ian. The potential "watering-down" of the report [...]
It will be long and hard.
" We all lose interest after making a deposit and a withdrawal" We are all looking forward to the banking industry's return to communication through facts and figures. In the last year-or-so they have all shown an increased predilection for the medium of the euphemism, metaphor or cliché. The RBS Chief Executive Stephen Hester is our favourite banking boss - a straight-down-the-line guy with whom you can shake hands without having to count your fingers or look for your watch. [...]
Out of the Frying Pan
THE VERY UNDERSTATED GM HEAD OFFICE The General Motors announcement that the deal to sell the company to Canadian spare parts manufacturer Magna went down very well with the unions yesterday morning. That is because Magna had previously announced that after the sale they would be cutting as many as 10,500. The unions' and workers' euphoria was very short-lived because GM has now announced that it will be cutting 10,000 jobs. In addition, the German government is demanding from GM a repayment [...]
Vauxhall-Opel Safe?
VAUXHALL - The future? General Motors has announced that it has changed its mind and that the impending sale of Opel and Vauxhall to Canadian car parts firm Magna will not proceed. It seems that most people are very happy with the last-minute decision. Opel emplys 54,000 pople across Europe and Vauxhall employs 5,500 people in Luton and Ellesmere Port. In spite of promised backing by the German and British governments, there would have been substantial job losses as a result of proposed [...]
The new Ponzi Scheme.
THE BRITISH ECONOMY Twenty months ago, I was the only commentator (to my knowledge) to predict nationalisation of our banks. SEE HERE. Here's another prediction: The Ponzi scheme that is the global economy will soon come crashing down - and it will be quick. Governments everywhere - but especially in the United KIngdom and the United States are bankrupting themselves and destroying paper currency. The crash of the dollar is weeks away. In six years, the dollar is already down one-third [...]
Handouts with Conditions
21st Century Banking The British government said that following improved market conditions and extensive due diligence announced in February, Lloyds will no longer participate in its Asset Protection Scheme and instead will raise additional private sector capital and pay a fee of £2.5 billion to the taxpayer for the protection provided to date. Lloyds has also announced plans to raise £21 billion through a combination of a £13.5 billion rights issue, and £7.5 by swapping existing [...]
Another handout
Darling's unique approach to the banking industry. Alistair Darling is going to announce that the government will spend £30 billion on "buying bank shares". One presumes that it is now called "buying shares" because the government does not want to keep using the word "handout". (By the way, he is not using "our" money. This will be a combination of recently-produced or borrowed money). The government will thus be increasing its equity in the banks and so diluting the share [...]
Back to the Future (again)
There is potentially great news in the banking sector- and about time. The government is to create three new bank chains by selling-off divisions of RBS, Lloyds and Northern Rock. By 2015, our High Streets may once again see old and trusted brands such as the Trustee Savings Bank, Williams & Glyns and Cheltenham & Gloucester. Could this be the best thing that this government has done? It looks like it - but once again, the new policy looks contrary to what Gordon Brown was saying only [...]
Joint-up Government
Two executives at the Royal Bank of Scotland have been suspended after alleged corruption at its overseas mortgage operation. The bankers were allegedly asking foreign estate agents for payments worth tens of thousands of pounds in return for referring customers. Many of the suspected practices have taken place within the last 12 months and since the government bail-out. (more...)
Take any card
Credit card companies now appear to be competing not only with each other but with back-street money lenders. If you are in the habit of paying only the minimum monthly payment on your credit card, it could take you up to 50 years to repay the balance. However, the good news is that if you do only repay the minimum, the credit card company is very likely to increase your borrowing limit from time to time. However, if you are one of the naughty people who repays their balance every month, you [...]
FTSE 100-99-98…….
The FTSE 100 index held its value yesterday - that's in spite of the bad economic news and the announcement that the United Kingdom is still very much in recession. The FTSE 100 seems to be almost impervious to any bad data that can be thrown at it. GDP data should have shocked the market because it showed that the UK economy unexpectedly contracted in the third quarter. Sterling tumbled more than a cent against the dollar and gilts jumped. On the face of it - nothing seems to make sense [...]
GDP
We will be hearing the phrase GDP (Gross Domestic Product) more and more over the next few months. Here's what it is: (more...)
Question Slime
"Mr Griffin, stop holding that comb under you nose and do please put your arm down." The British are instinctively racist - and that's in spite of enjoying what is culturally the most diverse population in the world. There has been a growing fascination with the political far-Right since Fascism's heyday of the 1930s. Even King Edward Vlll experienced a certain "frisson" when in the company of either Adolf Hitler or Oswald Mosley. Many of England's ruling classes found a certain [...]
CWU – An Assisted Suicide.
The modern face of Royal Mail So the Royal Mail strike is on. It has been booked to continue for only two days but the fallout will last for the next few weeks. The Royal Mail system will not suddenly right itself after two days of inactivity. Letters, people, vans and parcels will not magically materialise at the depot where they are supposed to be. (more...)
Merv the Wise
"Bless you all. The economy will soon crash land again- so please adopt the correct position. Stick your head between your legs and kiss your ass goodbye." (more...)
Postman Prat
Royal Mail is going to hire 30,000 workers to "help" during the impending strike. Usually the Post Office hires only an additional 15,000 staff for the Christmas rush. Let us hope that this blatantly provocative gesture by the Royal Mail management does not backfire. Let us also hope that in their haste, they do not forget to run proper background checks on the people that they hire and so keep the number of thieves and terrorists to a minimum. Expensive temporary labour plus the millions in [...]
It’s those Banks again
The government shouldn't issue mandatory executive-pay guidelines and although Gordon Brown may think that it's a smart move to somehow link bank executives' pay to share price, he is introducing yet another element of risk. (more...)
That was the week….
"Aren't you one of those Fuzzy-Wuzzies that we've been hearing about?" "Actually, I'm the Mayor of London." "Sorry, Doris." Diwali was celebrated at Downing Street . Members of the Hindu, Sikh, Jain and Buddhist communities were invited to Downing Street to celebrate Diwali, known as the Festival of Lights, which promotes messages of hope and togetherness. Let us hope that the most important Christian Festival is also celebrated and acknowledged by the Prime Minister. Mind you, by next [...]
Spelthorne? Moorlands?
David Witshire MP David Wiltshire, Conservative Member of Parliament for Spelthorne will be sitting outside the headmaster's study this morning. (more...)
Don Gordo speaks
"Just pay the money, you punks. We don't want no accidents, do we? When Tommy the Legg is unhappy - I am unhappy. Think about it. OK so he's a "testa di cazzo" but he's like a brother. Sei niente senza rispetto!". Many MPs just don't want to return any expenses and it seems that Sir Thomas Legg has neither the authority nor any sanctions to apply to this rapidly amplifying problem of parliamentary dissent. Party leaders are showing little management ability and are communicating [...]
A real Legg-up
"I'm as innocent as the next man." The MPs expenses fiasco rumbles on and Parliament's reputation is still heading South. Much was made of the previous Speaker's lack of management skill and consequently he was removed from office. So where is Speaker Bercow? In the last few days, his name has not been mentioned at all. This is the time when he should be earning his salary and TELLING members what they should do. (more...)
Westminster Back to School
"Tell you what - I'll throw-in The Dartford Crossing and Northern Rock" It appears That the Government is about to hold a boot sale. One would like to say that they were selling-off the family silver but unfortunately, that's already gone. Gordon Brown does not have the best record for selling the country's assets- the most well-known being his sale of our gold reserves. He sold at the bottom of the market at somewhere near $200 per pounce CLICK HERE. Today, gold is trading at well [...]
Dave’s Speech
Standing ovation? Inevitable. Interestingly enough, the autocues were not visible. Dave walked on clutching a pile of notes - which was probably a disappointment to those who expected another off-the-cuff session. He told us in true "Honest Dave the Voters' Friend" style that the next few years will be tough. The Honest Dave approach will be contrasted by many with Gordon Brown's style which increasingly resembles that of an ageing Poker player holding his cards ever closer to his chest. [...]
Conservative Party Conference week.
Boris Johnson once again has showed his leadership credentials by being approachable, witty and engaging. He does make the rest of them look a little bit pedestrian. In spite of his shambolic image, you can sense a rod of steel running through both his speech and personality. One to watch for the future. Imagine a TV debate between Boris and Gordon Brown. It will never happen - but what a prospect. Boris Johnson and friend George Osborne's [...]
Friday October 2nd 2009
Ethiopia has suddenly become the focus for all anthropologists. An ancient skeleton was found in 1992 and it has taken 17 years for the research team to rebuild it. Why all the excitement? The skeleton belongs to an in-between species of humanoid about 4.4 million years old. It has been designated Ardipithecus Ramidus. It is not “the missing link” but by extrapolation, it appears that it is probably about 9 million years since the division between apes and humans. So where was John [...]
Thursday October 1st 2009
A survey has just been published of the world's top Broadband Countries - taking into account speed etc. The United Kingdom is languishing in 25th place. The top country? South Korea. Is this another indicator of the rise of the East and the slow eclipse of the West?. The Daily Mirror has adjusted its reportage of the Tories today - presumably in response to the Sun's decision to back the Tories. It's going to be a right mess leading up to the election. The gloves are off [...]
Wednesday September 30th 2009
So the Sun will not be supporting the Labour Party. No real problems there, except the usual one. Why should an Australian like Rupert Murdoch have any say in which newspaper supports which Party. The Sun is read largely by the drooling classes who are very susceptible but regrettably, there is very little that can be done. The Sun’s sister paper , the News of the World, no doubt is poised with some salacious Labour politician scandal ready-to-go. The Sun will not just be [...]
Tuesday September 29th 2009
Interesting statistic which doesn’t appear to be receiving the publicity that it deserves: In the United States, a house is foreclosed or repossessed every 7.5 seconds. As usual, the politicians are taking care of business at the macro-level, while the grass-roots are burning. It is an excellent idea for Gordon Brown to take-on the other two Party leaders in televised debates. Any future Conservative or Liberal vote should be a “pro” Conservative or Liberal vote and not an [...]
Monday September 28th 2009
Excellent headline grabbing by that jug-eared gargoyle Andrew Marr. He is without doubt a supreme journalist but his questioning of Gordon Brown yesterday was inexcusable. Suggesting that Brown needs prescription drugs to get through the day, followed by Brown’s admission that he has trouble with his eyesight was a direction that no journalist should steer. There is a real danger that if the Tory Press goes down the ” Brown’s a sick man and therefore unfit for office” route, there [...]
Sunday September 27th 2009
Just down the road in Brighton THEY are arriving for the Labour Party Conference - or should that be the New Labour Party Conference. Did we elect Labour or NEW LABOUR? Anyway, that’s now just a technicality or a long-forgotten dream of how things could or might have been. Here’s a Labour FACT, given to me by a friend who used to be Chief Barman at the Grand Hotel. More Champagne is consumed at the Labour Party Conference than at all other conferences and he told me stories of vintage [...]
Saturday September 26th 2009
The American Fed has issued the following statement: “To provide support to mortgage lending and housing markets, and to improve overall conditions in private credit markets, the Federal Reserve will purchase a total of $1.25 trillion of agency mortgage-backed securities and up to $200 billion of agency debt.” Now we can watch the demise of the once-mighty American Dollar. Fund Managers and Investors will now start dumping dollars like confetti. A TRILLION is a million millions [...]
Friday September 25th 2009
Friday September 25th 2009 The mole who leaked the MPs’ expenses information to the Daily Telegraph has revealed what motivated him to do so - apart that is, from the £110,000 fee that he was paid. It now appears that his primary motivation was not money but the fact that serving soldiers were “moonlighting” at the House of Commons. They were working in the Security department and protecting the Civil Servants who were dealing with confidential matters - one of which was [...]
Thursday September 24th 2009
The Government has criticised the Football Association for not reforming itself. It has also asked the F.A to spend more time and resources on ethnics and women as well as telling them that they should provide better leadership. Perhaps when the F.A has completed its restructuring it can then give H.M Government a few tips. Talk about Pot-Kettle. A recent U.S survey shows that many Americans think that Tony Blair is the British Prime Minister. Someone ought to tell them who the real UK [...]
You calling me a banker?
"Move over, Darling. Please!" Banks are currently reducing their assets and hoarding cash because of liquidity requirements. Put in simple terms, that means that the magic conjured-up money - the so-called Quantitative Easing is making it in through the banks' back doors but the front doors remain only slightly ajar. No amount of media-blackmail or Government arm-twisting is going to persuade the banks to start lending to commerce or to the private sector in reasonable volumes or at [...]
Wednesday September 23rd 2009
Apparently, there is a small but statistically significant rise in patient deaths when junior doctors start work in August. Perhaps the same survey should be done with slightly different parameters: Before pubs open and after closing time. A friend sent me a cartoon yesterday which, for the first time, explained the constant Midde East conflict . Jewish man looking up at the sky saying, “Now, let me get this straight God. The Arabs get the oil and you want us to cut the end off [...]
Tuesday September 22nd 2009
Did you see Darth Mandelson being questioned on the subject of bankers’ bonuses last night? As Business Secretary, he has the power to stop the bankers in their tracks. But he cannot and he would not answer any bonus-related questions. General Stanley McChrystal, the top US commander in Afghanistan has warned that the war there could be lost unless there is an increase in troops within a year. He is asking for an additional 30,000 troops. This is truly developing into another [...]
Monday September 21st 2009
It now appears that Womens World 800m champion Caster Semenya was tested ages ago and there has been concern over her sex for months. The issue did not suddenly materialise at the last Word Championships. The whole thing has been handed so badly that there is every likelihood of IAAF resignations. Baroness Scotland will probably resign this week. If every politician who made a mistake resigned, Westminster would be empty by now. It looks as if Megrahi is going to be the first [...]
Monday September 7th 2009-Friday September 18th 2009
Friday September 18th 2009 There has been some concern that Romell Broom may have suffered mental anguish when two Ohio State officials failed to find a vein in order to deliver a fatal injection. According to Broom’s lawyer, Broom had suffered both “mental and physical injuries” and apparently became distressed and appeared to cry. Broom was convicted of raping and then killing a 14 year-old girl. We’re too fat, we drink too much alcohol, we’re unfit, we ingest female [...]
The Phony Economy
The approximate position of the British Economy One of the great questions of our age is "Have the billions handed over to the banks had any affect on the economy?" Some say "YES", some say "NO" and others say " IT'S TOO EARLY TO TELL" Currently , we appear to be living through what can only be described as a Phony Economy. The Footsie looks much healthier and there is sort of "whistle in the dark" pretend-confidence in the markets. Pundits are talking-up the markets, politicians [...]
What Recovery?
TOOLS OF THE TRADE: INVESTMENT BANKING Since 2007, there have been at least three announcements which declared an end to the economic crisis. Today, we have the latest pronouncement of a slight ”recovery” and the fact that a survey shows “increased confidence” from consumers. All a bit nebulous but nevertheless welcome. The FTSE 100 is trying to muster the courage to break through the 5000-barrier and there are predictions that it will be well over 5000 by [...]
Clever but Dull
" I see no shits" There have been rumours again that as soon as a General Election is announced (probably May 2010) David Cameron will be challenging Gordon Brown to a Presidential-style live TV debate. That does not seem like a great move. WWF it ain't but Gordon "the Undertaker" Brown has nothing to lose and "Pretty Boy" Cameron has nothing to prove. The best that the Conservatives can hope for is that New Labour keeps Brown in place as Leader and Prime Minister. The two falls [...]
Cut and Paste Brown
"I was both angry and I was repulsed by the reception of those conniving bankers guilty of a huge economic crime . . . on their return to bonus payments. "When I met Mervyn King over the summer I made it absolutely clear to him that we had no role in making the decision about the United Kingdom's future." "Because it was a quasi-banking matter, because it was a matter legislated for by the European Parliament and not by us . . . it was a matter over which we could not [...]
Antonio Polverino scores again!
There are two types of organisation that have made such huge financial rods for their backs that it looks as if they are beyond help. At first, it appears that they have little in common but if you look closely, you will see that they do share two very basic elements. The first is a weak and often unskilled boardroom and the other is direct access to the public's money. Another interesting similarity is that their personal incomes bear little relation to how they perform long-term. [...]
Why are we waiting?
There used to be a saying: " Brazil is the country of the future - and it always will be." That's not so funny now because it looks as if the Brazilian and Chinese economies are the ones in pole position, poised to take off like a rocket while the West wallows in Depression-scale unemployment and debt. (more...)
Hell on a Bonus Starter.
"City Slickers are holding onto their bonuses so tightly that the Queen's tongue is hanging out!" (more...)
Goldman Sachs – Fiscal Frankenstein.
It was a few months ago that I realised the size of the divide between us ordinary Earthlings and the government-venerated banking royalty had gone past the tipping point and that we were now separate species. Survival of the fittest? Darwin was right. We are the peasants with pitchforks gathered below Frankenstein's castle where mysterious new things are happening. (more...)
Naughtiness or Incompetence?
There is a very unpleasant ripple which is in danger of growing and engulfing the banking–world. One has already seen the first stirrings of Madame Défarge-like blood-lust being directed at the “evil” bankers. (more...)
The Real World
The "Real "World There is still one contentious Westminster issue which has yet to be properly resolved and that is the question of whether MPs should be allowed "outside" jobs and how much time they should dedicate to non-parliamentary interests. (more...)
Give it a Tweak.
We are currently a single-concept country. It is still MPs' expenses - although Susan Boyle has also embedded herself in our psyche, providing very welcome relief from the ridicule and vilification of our Parliamentary representatives. The most disturbing thing though is not the range and volume (and ingenuity) of our Members of Parliament but the inertia of all our political leaders. It is now dawning on Joe Taxpayer that there isn't a single political leader who has any idea how to [...]
Those damned rules!
Elliot Morley MP did not "made a mistake" when he fraudulently claimed £800 per month for a non-existent mortgage. Likewise, Andrew MacKay MP and his wife and fellow MP, Julie Kirkbride knew exactly what they were doing when they were claiming for two "second homes". Two Labour Lords have allegedly been exposed as a couple of crooks who were willing to take cash in exchange for altering Laws. Again, these were not mistakes. The "It was within the Rules" mantra is no longer being trotted out [...]
Retribution or Restitution?
Unlike your MP, at least Dick Turpin had the grace to wear a mask. The taxpayer is looking for two things as a result of the current MPs' expenses campaign. Retribution and Restitution. Retribution can be delivered through the medium of the ballot box but the matter will not be allowed to rest until there is at least some attempt by Members at restitution. Apologies are no longer hard currency. How about if some of the more frivolous Members' claims were dealt-with by the [...]
Quantitative easing
According to the Maastricht Treaty, EU member states are not allowed to finance their public deficits by printing money. That is one reason why the Bank of England will buy government bonds from financial institutions, not directly from the government. It is called naughtiness-with-intent. The danger is that so much money will be pumped into the economy that hyper-inflation will occur ( Weimar Republic and more recently, Zimbabwe) This was all tried in Japan ten years ago and did not [...]
G20 bender
These are the wines that were served up to the G20 delegates. The total bill for the wine was a bargain £6000 which is a small fraction of the total wining and dining bill which was approximately £500,000. Perhaps the taxpayer should be grateful. Here is the list: Château Pichon Longueville Comtesse de Lalande 1986 - 19 bottles @ £140 per bottle. Château Leoville Poyferré 1989 - 29 bottles @ £60 per bottle. Concha Y Toro Merlot Sunrise 2006 - 11 bottles @ £6 per bottle Domaine de [...]
Where’s the New World Order?
A twisted fusion of capitalism and socialism is being forged in the white-hot heat of political panic. No-one should complain because we are all being forced to run blindfold towards a world where profits are privatised and losses are nationalised. We cannot lose. Competition within financial services will be a quaint throwback to the last century because both the US and UK governments have now demonstrated that if a company is big enough, it will have Federal and Treasury [...]
Darling has the solution in his hands.
If you have read a good balance of the reporting and commentary on yesterday's budget, you will have realised by now that this was a political budget. The Chancellor and his puppet-master know that their stewardship of the economy has a maximum of 12 months to run and then , as is the fashion nowadays, the lecture and non-exec circuits beckon. There is light at the end of the tunnel for some but unfortunately, not for all. There is no point in raking through the coals of yesterday's return to [...]
The Scam of the Millenium
The Government has a vested interest in allowing us to assume that suddenly the comparatively modest bailouts and part-nationalisations of our banks have somehow solved our economic woes. They would have us believe that we can now sit back and await the often-mentioned green shoots of economic recovery to somehow poke their way through the concrete of economic failure. We have even had "estimates" as to when the recovery will kick-in. Where were these soothsayers one year ago? I am using [...]
Socialist? Moi?
The current Labour government is having a very tough time and a very bad situation is made worse by what appears to be a lack of leadership and management skill. Gordon Brown seems to feel that you can manage by changing the rules or by organising enquiries. You can imagine Brown being informed that more and more people are on the breadline and solving the problem by having an enquiry whose purpose would be to confirm that the breadline is in the right place and if not, recommending where [...]
The Brown Delusion
"Now down again. Slowly." The G20 conference was the most orchestrated, pre-determined piece of theatre that we have had the privilege of seeing since the 1968 Morecambe and Wise Christmas Show. The primary motivators were to somehow please the banks, instill confidence in both the markets and the voting public and lift Gordon Brown's approval rating. The three main devices used were the over-wide smile , the already well-tried method of "let's throw more money at it" and a long [...]
G19 (+1)
"Sorry! That should have read: Monsieur Sarkozy is regarded by many as a cult" There ought to have been just the one hymn sheet because if there are several hymn sheets, we are in for a very discordant Thursday. Barack Obama is hoping that: " G20 countries will do what is necessary to promote trade and growth."M le President Sarkozy wants to create a Financial Interpol to police the financial services industry. The delusional Gordon Brown's not-so-hidden agenda is to rescue his [...]
Dunplaying
"Ooh look - something has bounced off the fan and it appears to be coming my way!!" The Dunfermline Building Sociey had the temerity to go cap-in-hand to the Government. The Chairman Jim Faulds was rude about the Chancellor and accused him of making the wrong decision, based on erroneous information. Bad move. The truth is that the Financial Services Authority has been hawking the Dunfermline around the indutry for a few weeks - without too many takers. Jim Faulds' outburst was nothing more [...]
Home Sexretary
What a laugh - Jacqui Smith's husband has been watching porn movies at the taxpayer's expense!!!! The red-tops are in a frenzy and poor Jacqui is both angry and embarrassed and there have been the usual mutterings of "We will of course pay it back." "Schadenfreude" was invented for this situation. The fact is that the type of film that he has been watching is irrelevant. The real argument is about MP's expenses. How many of us have never watched a porn movie? Admittedly, the fact that [...]
Oink!
The perfect line of curly tails has temporarily stopped flicking with pleasure because it seems that the trough of plenty is about to be removed. The squealing and slurping has stopped because the Mama Pig that is the taxpayer needs some respite. There is a real danger of drought - and it is not the drought predicted by the Global Warming Mullahs - it if the financial drought caused by the double-whammy of "on the take" bankers and their avaricious politician chums. The Home Secretary, Jacqui [...]
Bear necessity.
We have entered a long-term bear market and equity prices are heading towards Ground Zero. All that Governments have managed to achieve so far, is to delay the decline. The currently established pattern is very simple - investors wait and see what the government is going to do. Then there's a short Stock Market rally. That is usually followed by another business admitting losses, bad debts or a cash shortage and shares move down again. Then the cycle is repeated. The whole [...]
A very dangerous precedent.
"Sit on this and swivel , you bastards" Let's get one thing straight - when an Executive is hired by a Board, a contract is signed. That contract will contain information about remuneration, bonuses, pension contributions and a hundred other things that cannot be settled by a handshake. Sir Fred Goodwin will have agreed such a contract with the Board of the Royal Bank of Scotland. Furthermore, the shareholders will have ratified all pensions contributions for his benefit and that [...]
Revenue and Misappropriation
What the Banks really mean It is about time that the taxpayer was told exactly.what the banks have done with the money that they have been handed by the Government. Vague statements such as "plugging holes in the balance sheet" mean nothing to most people (including politicians). "Restoring confidence" in inter-bank lending is also a meaningless phrase as is "toxic assets". Alistair Darling has just asked the banks to "tidy up" their Balance Sheets. Does that mean that the banks [...]
I’m a real FRIC.
A Valuer FRICS Gordon Brown continues to speak with the conviction of a condemned man reading from a hurriedly-conceived briefing paper This time it is mortgages (again). No more 100% mortgages? I think that it is about time that the Prime Minister carried out a simple calculation as follows: Suppose that the Government (sorry, Northern Rock) lends 80% on a £100,000 property - that is an £80,000 mortgage. Then let's suppose that the property falls in value by 20%. That means that [...]
How to…………….
There has always been an insatiable craving for advice on quick fixes to situations which we encounter in our daily lives. There is no other explanation for the ever-accelerating sales of “How to...'' books. The very first in the field was Dale Carnegie’s “How to win friends and influence people”. The demand for Benjamin Spock's tome on baby care – a sort of baby Haynes Manual - sold millions. There was even a book called “How to succeed in business without really [...]
Sorry?……..Er….Yes, all right then.
I would have asked only the one question: Sir Tom and Lord Stevenson…….."I sincerely and unreservedly apologise for this question but can you please describe the differences between a Credit Default Swap, a Total Return Swap and a Credit Listed Note?" "Phone a friend?……….Oops, sorry, I forgot!! You don't have any." Thankfully, this morning's Treasury Select Committee Cringefest is over and there have been apologies. They were on a par-with and as pointless-as the [...]
