Wednesday, Dec 09, 2009
Here it comes
Telegraph: News article
One the usual posters have missed
Posted by boss @ 12:13 PM (1256 views) Add Comment
10 Comments
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1. alan said...
Jeff Randall on Sky last night emphasised these points. He also looked at Greece and Portugal's debt problems within the EU. Other agencies (not just Moody's) have adversely commented on the UK sovereign debt problems - however, Dubai and Venezuela seem to be leading the possible default race on that article.
A Bloomberg article highlighting the UK's weakness was posted at the start of the week. I can see a situation where our UK debt rating is cut early in 2010 which will push up the cost of Darling's borrowing well beyond current estimates.
From a global perspective, the debt situation looks pretty unhealthy almost everywhere we look.... Lithuania, Pakistan..... even California isn't looking healthy!
2. jack c said...
When the world was spending roughly £1.10 for every £1.00 earned a blind man in a darkened room looking for a black cat could see it was all going to end in disaster.
3. a saver said...
Agree with jack c. The sort of situation the gov pays huge fat fees for an agency to research.
They come up with a load of sh*te and don't even have to refund the dosh when everyone realises it.
4. alan said...
On my first visit to East Ham Technical College at the start of my accountancy exams Mr McPherson taught the class about debts and repayment. We learned how important it was to work out how you were going to repay the debt before you saw the bank manager. The first example was applying for a mortgage....Mr McPherson liked practical examples to help us understand money and finance. Sound people those Scots!
Did anyone else do basic accounting & economics? If so, where are you now? Certainly not in RBS!
I'm not trying to turn the site into "Accountants Reunited", but does anyone do the maths these days?
5. mark wadsworth said...
That's incredible. Nobody on this site ever warned us that this would happen. Or have I missed something?
6. timmy t said...
From another Telegraph article... "Figures in the Treasury’s pre-Budget report documents reveal that in 2014/15, the national debt will be £1,473 billion. That is 77.7 per cent of gross domestic product
And given that Darling has a habit of underestimating our debt requirement and overestimating our GDP forecast, I would have thought this could easily top 80%... So only double what Brown imposed as the limit - just 100% out - not bad really...
7. the number cruncher said...
alan @ 4
Amongst the many qualifications I gathered , as an alternative to a good social life, I have an MBA
An MBA did teach a little finance and accountancy, but the pass rate was so low any one can get a MBA with poor numeracy skills - I have a feeling that many of our b(W)ankers have worthless bits of paper like me and no real accountancy or banking qualifications.
I have a feeling also that the rise of MBAs in business leaders is a very dangerous thing and such qualification and are chiefly to blame for the mess we are in (although I had great fun doing it and enjoyed the social life tremendously)
8. tenyearstogetmymoneyback said...
jack c said..."When the world was spending roughly £1.10 for every £1.00 earned a blind man in a darkened room looking for a black cat could see it was all going to end in disaster."
How can that be so (unless we are buying goods on credit from the Martians) ?
Replace World with Western World and I think you might be much closer.
Things are made worse when you add in interest. I have just heard on the TV that 10% of Government
spending will soon be just on paying interest on the National Debt.
9. drewster said...
The ratings agency cartel needs to end, and soon. It's ridiculous that a handful of bean-counters at Fitch and S&P effectively control government policy in every country around the world. The sooner we get abolish them, the better.
10. techieman said...
MW - how did you eat dinner with your tongue fixed in that position?