Thursday, Mar 11, 2010
Britain's AAA-rating is highly at risk
The Telegraph: Europe's banks brace for UK debt crisis
Britain is at serious risk of a bond market and sterling debacle and faces even more intractable budget woes than Greece.
Posted by devo @ 09:12 PM (2241 views) Add Comment
17 Comments
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1. icarus said...
To AE-P and the 'leading analyst' - if you fancy the horse don't tell me, just back it. If this is your forecast for the coming year just put your money on it. You're one punter among many with an opinion. There's nothing new here that's obviously going to move markets one way or t'other. There's no evidence here that Greece is better placed than the UK. "Greece can just collect uncollected taxes." Simplistic or what?
2. devo said...
@icarus.... If this is your forecast for the coming year just put your money on it.
That's a long timeframe!
3. fallingbuzzard said...
Greece collecting uncollected taxes is laughable, if not impossible. So Greece is far worse placed than the UK. The problem here is different. In an election year, its difficult to decide who to take it from when you have to stop taking it from the generations that don't yet pay tax.
4. devo said...
Greece is far worse placed than the UK.
no, it is in the same place
neither is an a position to increase tax take
how they got into that position is irrelevant
5. drewster said...
AEP is making the point that Greece can only surprise to the upside, whereas the UK can only surprise to the downside. Greek politicians have (recently) been honest and up-front about the problem, and everyone acknowledges that there is a problem. In the UK politicians argue and nobody acknowledges the problems.
6. drewster said...
The media is a large part of the problem. If one political party says white is black and the other party says white is white, then our impartial media bends over backwards and proclaims that white is a shade of grey. Add in the financial illiteracy of most journalists, and it's no surprise that most people are in denial about the problems.
7. devo said...
5. drewster said... Greece can only surprise to the upside
how?
oh, do you mean this?...
Greece's government can count on a majority to push austerity measures through parliament
the Greeks on the streets will love that!
8. devo said...
6. drewster said... The media is a large part of the problem
rubbish
the media is a servant of its audience
9. devo said...
"It's The Sun Wot Won It"
Saturday 11 April 1992
who'll win this year's gamble on loose horses?
10. mander said...
Hold on a minute! It is generally accepted that a weak currency is good for the economy. So that foreign investors get a 30% discount for UK properties but what did people living in this country get apart from higher taxes?
11. rumble said...
"It is generally accepted that a weak currency is good for the economy" -- for exports, not property
"what did people living in this country get apart from higher taxes?" -- higher property prices
12. rumble said...
"Greece can just collect uncollected taxes." -- tell that to the greeks, united in their (socialist) selfishness - gimme, gimme... you want to take?!?
13. drewster said...
"what did people living in this country get apart from higher taxes?"
Devaluation has probably saved a lot of jobs. UK unemployment has risen far less than in the US, Ireland, Spain or Latvia. Needless to say, if you're a UK homeowner then the rock-bottom interest rates may well have saved you from repossession too. To the average swing voter (homeowner, worker) those are two very big achievements. If I was a homeowner I'd be very grateful to Brown.
14. devo said...
AEP's articles inspire excellent comments
an excerpt...
But I ask you this: what of the working stiffs? What of the people who live day by day without care of this mess? When they find they no longer earn enough to pay for the excesses of the few; when the pensioners realise they have been sold down the river?
I AM a peaceful man; but I fear that for many the change (though more gradual than I first anticipated) will still leave many out of the political system. And they will react if things get too bad. I pity the government's decision makers; such a hard choice ahead!
Have you considered what will happen when all the women realise the truth?
15. fjcruiser said...
In times of election, no politician is going to win votes by acknowledging the need for austerity to get out the hole.What will make people decide whether to vote tories rather than labour is whether they believe the country is in a hole and sinking further and who is best to get us out of the hell we are heading towards. If history repeats itself, the tories have got the edge....
16. cat and canary said...
"So that foreign investors get a 30% discount for UK properties"
...true, but this still doesn't mean UK house prices are cheap, say (for example) to those holding euros.
The playing field is more level now, and what european would want to live in london??? ...just because the prices are comparable to their home country, and give up all that lovely sunshine!
Its not like we have many more jobs (once you factor out all the ONS fiddle factos concerning the true unemployment rate)
17. mander said...
A weak currency can only help UK to export services but does not apply to goods because for the goods we export we import first the raw materials and other parts in USD and also because we import more goods than we export devaluation has contributed zero. Devaluation puts assests and existing UK companies up for sale. See Cadbury case being bought because of a weak pound. How to export if we no longer will have factories like Cadbury?