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Everything posted by flapjack

  1. Wilkinsons are taking over the old Woolworths store in centre of Exeter. Recruitment underway at moment - reported in local press 800 turned up for around a 100 jobs. I suppose thats not too bad 8:1 ratio but seems a bit drastic as most of jobs will be at minimum wage. But not much choice down here - temp tourism jobs or care homes!
  2. The Prime Minister will say today that the level of fraud is “absolutely outrageous” and an “uncompromising” strategy is needed. It really is time they got these politicians under control!
  3. Connaught is spread across much of the UK, this a big employer - around 10,000 I think. Too big to fail? Will it be bailed out? This is one to watch I think - it will be a very bad sign for the economy if they do go out of business! 10,000 redindancies and the knock on effect will be horrendous. The firm is based in Exeter - if it goes that will be very bad for the city as well. Just goes to show what happens if you go around shouting 'cuts, cuts, cuts', without thinking through the consequencies. Plus all the MPs etc on holidays from today. Oh happy days -
  4. Scary stuff - down by around 94% since last November. High of 444p - now at 29p - massive drop at end of June. A pure public service contractor - just goes to show what unintended consequencies can occur if you don't have a coherent strategy and just slash and burn. Connaught are a major employer down here in the westcountry - could be devastating. I think there will be major efforts to save them. Hopefully they will get some more contracts when the ConDems sort them selves out (if they sort themselves out). http://www.connaught.plc.uk/investors/shareprice/
  5. How anyone can think we are not heading down the crapper is beyond me. Millions of $ 2000 2080 2163.2 2249.7 2339.7 2433.3 2530.6 2631.8 2737.1 2846.6 In 10 years the economy has grown by 42% and 200 million will be about 7% of GDP and thats without a single cut. But as the economy grows the Govn tax take will increase steadily so that deficit will be back down to 4 or 5% by then. Best thing is to do nothing!
  6. Eric! Eric! Eric! Like the quote about - 'liar loans' - even the MSM are beginning to get it!
  7. This has been picked up in main broadsheets now - who are reporting it as a blow to Georgie boys plans. Could it be anything to do with the fact that they forgot to mention to Budd that they were going to cut the schools capital expenditure? After they said that they wouldn't cut capital projects. You just get the impression at the moment that they're just making it up as they go along. What credibility will the OBR have now? The trouble is all of these organisations are subject to political bias under which ever Govn is in power. But I just can't see how they can get a growth figure or falling unemployment while they are going around slashing major budgets. All we hear is cuts, cuts cuts - but where is the growth coming from. An impossible task for the forecasters in my mind! Great new words going around - Slashophilia and slashoholic! Guess who?
  8. Maybe he's to become the new 'Work til you Drop' poster boy!!
  9. Sir Alan Budd who heads up the Office of Budget Responsibilty is set to quit. http://www.guardian.co.uk/business/2010/jul/06/alan-budd-quits-government-spending-watchdog The OBR which is meant to give impartial figues for the economy is under pressure already. Why has he quit? We don't know but looks like George and Dave were leaning on him for being too honest. This an interesting story as the OBR is a the heart of the new Tory machine. I sense a scandal brewing over this.
  10. Mr Smith said the fall was in response to "the Government's austere emergency Budget, with concern expressed that the fiscal tightening could push the country back into recession". Now that we begin to see the real intentions of the Tories - people are beginning to realise what it actually means for them. The Govn just announced they were cutting £5bn of capital spending by axeing the schools programme - thats a huge amount of work for the building firms. But hardly a thing in the MSM about this. Typically not a word in the Daily Mail - staggering. Many of these projects are in the £20-30m range - so a years work for what 50 blokes? Thats a huge loss for some firms. Plus I notice somewhere that the service firms that work for the public sector - like Connaught - are downgrading their forecasts and issueing profit warnings. There a lot of private sector firms that rely on publuc sector spending - if that all goes then we will go into double dip for sure. A lot of MDs scratching thier heads today! Where else will they get work from. The way things are going - it seems that the cure will be worse than the disease!
  11. Good article RB. This should add to the debate - it was property speculation wot did it!! http://www.guardian.co.uk/business/2010/jul/05/government-borrowing-public-sector-cuts MSM catching up at last. Wonder how this will go down in the Treasury this morning - oh sorry they only read the Daily Mail
  12. 150bn x 3% = 4.5bn 1400bn x 1% = 14bn Profit = 9.5bn Simples!
  13. I thought Georges first effort was excellent - C+ at least. Could do with doing a bit more homework and not playing so many silly wall games. Hope he carries on the good work in October - maybe he can dig an even bigger hole for himself and his chum, Dave! Off for my hols now - toddle pip old boy! Will be interesting to see how these free marketeers manage another banking crisis - presumably they'll just let them go bust! That'll sort things out!
  14. Ummm - shoe soup. I love shoe soup! This is what I was reading - that prompted question! http://www.dailymail.co.uk/news/article-1290616/Billions-wiped-British-shares-FTSE-plunges-3-shaky-recovery.html
  15. So if there is a default (bust) now - Dave & George won't bail them out? They believe in free markets - so no bail out - is that right? But........what happens next?
  16. Good post - I saw this and thought it should have its own thread. Greg Pytel's analysis is staggering - that the ratings agencies a threatening to downgrade Govn ratings if they don't cut the deficit by a substantial amount. With the main aim of freeing up Govn cash for more bank bailouts. *!**?!!!$&!! Lost for words - if this is true its staggeringly cynical, if not criminal. What we are about to see is thousands of job loses, no infrastructure spending, no investment and no growth for years to come - so that the banks can get their hands on more money to rebuild their balance sheets. Unfortunately it has the ring of truth about it. The whole of the Tories strategy is based on the premise that if they don't cut then the UK may get downrated by Fitch et al. But that means that in effect the ratings agencies are running the agenda! What right does a small, unelected, company have to influenece a national govnment - none. If this is even remotely true then there should be an enquiry immediately! It amounts to the banking sector holding the Govn and electorate to ransom. More squid anybody?
  17. Err we live in a service based economy. We have done for the past thirty years!! Try to keep up
  18. The pain in Spain falls mainly on ........Germany, France, Netherlands, Belgium (soon to be abolished) Greece UK etc All together now! Sorry to much sun
  19. 'A deficit of any kind is a joke. A structural deficit that is created at the height of the boom is criminal' But its not as straitforward as that is it? It never is in economics! It all depends on what the money was spent on - some of it was spent on assets and therefore should be regarded as investment. If the UK was a company these assets would appear on the balance sheet as tangible assets. But if the deficit was as a result of increased costs ie wages then that would be really bad and unsustainable. So to answer the question you would need to know exactly what the money was spent on. During a boom it makes sense for the Govn. to spend money on roads, schools, hospitals, rail links, olympic games etc. Previous govn. did make alot of expenditure of this nature but not all - I grant you. But can't evaluate this unless we can see UK balance sheet. But with 4000 school refurbished or rebuilt and many new hospitals the boost to assets is likely to be huge.
  20. If you've just jumped into your life raft, the wind is rising and the seas are getting choppy - then deflation is by far the greater risk. Don't rock the boat! Just reading about the young sailor who has been found alive
  21. Yes off course you can't keep on spending at this rate but they won't have to when the recovery kicks in - as it was doing. There was a very good chance that the UK would grow by 3% IMO! But as you will know - working in the private sector if a company makes savage then they often don't recover - customer service drops, customers stay away, more cuts and you end in a death spiral. The last thing Germany sould be doing is making cuts - next we'll be into import tariffs and we're back to the 1930s. We have to make a distinction between overspending as bad housekeeping or overspending as a result of some disaster. Bit like a householder when the roof is blown off or the water tank bursts - you borrow money to fix it then pay it back - over time! You don't panic and say well lets save money buy not doing any repairs. (Poor analogy) Anyway dont take my word for it - see what Greg has to say. http://gregpytel.blogspot.com/2010/06/to-chancellor-uk-aint-canada.html
  22. Yes I do believe it its called deficeit financing - nearly the whole of the business use it. Do you work in the public sector? Most companies big and small borrow money to expnad their operations - 10- 11% is very conservative (no pun) and would be seen as wholly acceptable by most accountants. There would be a problem with a 50% deficeit I agree but it happens - look at the Man U/ Glazier thread - they have a $1.1 bn debt - 50% of their 'assets'. What you seem to forget is that the UK govn has a very strong tax base - we are all hooked into the system and for most people tax is hard to avoid. When the economy starts to grow again tax receipts will accelerate rapidly. I think you need to do some more research and perhaps try Economics 101 on wikipedia. Just a foretaste of whats to come http://news.bbc.co.uk/1/hi/business/10261567.stm Hope you keep your job - I can tell you going from £500 per week to £65 is no fun and something i wouldn't wish on anybody!
  23. Totally extraordinary - we spend £200m on bailing out the banks and QE and then instead of waiting to see what affect this will have we do the ooposite and make draconian cuts. You couldn't make it up - if this was in a novel I would have dumped it by now, as being to silly for words! What do people expect the QE to do - suddenly solve everything! Any measure which tries to influenece a national economy will take years to take effect. What do people think it is - a magic wand? And it has to be said the economy IS growing - bit slow but we're coming out of recession. So now we're faced with the prospect of a new inexpereinced chancellor implementing a slash and burn strategy - just as things are staring to improve. We should take note of this moment - if the Tories implement the cuts as outlined above and the rest of Europe follows suit we will really see a recession the like of which we haven't see in our life times. These cuts are idealogical - the Tories want ro shrink the state back to levels of the 19th century - we'll be back to Victoria times.
  24. That's odd - William Hill have still got Spain at 4/1
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