Money Marketing cites pensions campaigner Ros Altmann, who says that the trustees of
the Northern Rock pension scheme must take advantage of the bank's nationalisation
by asking the UK government to fill the estimated £100m deficit. Altmann says any
future sponsor will not match the government in terms of strength.
Thursday, 28 February 2008
Tuesday, 19 February 2008
Credit Suisse suspends traders
Swiss bank Credit Suisse suspends some traders over inflating mortgage backed bond investments by $2.85 billion which will contribute to a reduction of $1 billion
in 2008 Q1 profits.
It seems that even the bluest of blue chip institutions are being badly affected by the global financial crisis. This follows January's news of 500 job cuts at the investment banking division of Credit Suisse.
in 2008 Q1 profits.
It seems that even the bluest of blue chip institutions are being badly affected by the global financial crisis. This follows January's news of 500 job cuts at the investment banking division of Credit Suisse.
Thursday, 7 February 2008
Bank of England cuts interest rates by quarter point.
The Bank of England has cut interest rates by a quarter of a point today (Thursday, February 7th) to 5.25 pct from 5.5 pct. Will it make a difference to the UK economy? Former Deputy Governor of the Bank of England,
Sir Howard Davies, forecasts that there will be either a slowdown or
recession whatever happens.
Davies is Director of the London School of Economics and has had a wide career. He even supports Manchester City hailing from the great city.
Today (Thursday) the Bank of England said inflation risks had worsened. So why did'nt the bank lift interest rates? I suppose we have got ourselves in a bit of a hole. The U.S Federal Reserve has been ignoring its inflation risks as well by cutting interest rates.
Sir Howard Davies, forecasts that there will be either a slowdown or
recession whatever happens.
Davies is Director of the London School of Economics and has had a wide career. He even supports Manchester City hailing from the great city.
Today (Thursday) the Bank of England said inflation risks had worsened. So why did'nt the bank lift interest rates? I suppose we have got ourselves in a bit of a hole. The U.S Federal Reserve has been ignoring its inflation risks as well by cutting interest rates.
Credit crunch (part 4?) hits United Kingdom.
The financial bigwigs are not sure when the credit crunch will be over but there are fears concerning the British consumer if the tap of easy credit is turned off.
The Daily Telegraph's Jeff Randall had a programme last night on ITV, which he plugged in yesterday's article "Debt juggernaut rolls us into madhouse". Randall
said there could be serious problems for house buyers, who used 100 per cent
mortgages.
The journalist said the banks were partially to blame, showering cheap money on customers, when interest rates hit very low levels between 2003 and 2004.
He noted the increase in credit card bad debts, which rose from the 2002 figure of
£1.1bn to £2.8bn in 2006 (with the assumption of worse to come). However, the
customers have to take the blame, when they abandoned personal responsibility.
The Daily Telegraph's Jeff Randall had a programme last night on ITV, which he plugged in yesterday's article "Debt juggernaut rolls us into madhouse". Randall
said there could be serious problems for house buyers, who used 100 per cent
mortgages.
The journalist said the banks were partially to blame, showering cheap money on customers, when interest rates hit very low levels between 2003 and 2004.
He noted the increase in credit card bad debts, which rose from the 2002 figure of
£1.1bn to £2.8bn in 2006 (with the assumption of worse to come). However, the
customers have to take the blame, when they abandoned personal responsibility.
Monday, 4 February 2008
Liam Halligan writes perceptive article about King re-appointment.
In yesterday's Sunday Telegraph, former Channel Four economist Liam Halligan has written a perceptive article about the belated re-appointment of Mervyn King as governor of the Bank of England. Halligan describes King as one of the few world-class economists in the United Kingdom and attacks the dithering of British Prime Minister Gordon Brown. The colummist considers Brown Nero-like and cites unnamed sources in Whitehall, who believe the Prime Minister finds decision-making extremely
difficult while others claim that Brown just likes playing cruel
games.
The Prime Minister's long-term adviser, Schools Minister Ed Balls, has said recently
that interest rates were low and were coming down. This reflects a government battle for lower and sooner rates.
I have always had the sensation that UK interest rates have always been too slow to come down and too quick to go up. Compared with the hare of the U.S Federal Reserve, the Bank of England is a bit of a tortoise.
difficult while others claim that Brown just likes playing cruel
games.
The Prime Minister's long-term adviser, Schools Minister Ed Balls, has said recently
that interest rates were low and were coming down. This reflects a government battle for lower and sooner rates.
I have always had the sensation that UK interest rates have always been too slow to come down and too quick to go up. Compared with the hare of the U.S Federal Reserve, the Bank of England is a bit of a tortoise.
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