OnionTerror Posted June 7, 2010 Share Posted June 7, 2010 Apparently this is on tonight... http://www.bbc.co.uk/programmes/b00rdzyc With worries about job cuts and difficulties getting on the housing ladder, the economic downturn has hit younger people hard. Robert Peston, the BBC's Business Editor, takes questions from a studio audience and attempts to explain how the country got into this mess and what it means for ordinary people. A series of short films explains the mysteries of why different jobs attract wildly different pay, how much debt is bad for you and an animated version of Robert Peston sets up his own Pesto Bank to uncover the mysteries of the banking industry. Quote Link to comment Share on other sites More sharing options...
Bruce Banner Posted June 7, 2010 Share Posted June 7, 2010 BBC3 TV Today 19:00–19:30On the Money with Robert Peston Robert Peston examines the recent financial crisis and what you need to know about money. Peston was on BBC News this morning promoting this program. It apparently covers the housing market and FTBs. One thing that Peston said, this morning, was that borrowing is essential, otherwise only those who inherited money would be able to start a business . Quote Link to comment Share on other sites More sharing options...
OnlyMe Posted June 7, 2010 Share Posted June 7, 2010 Yhey are worried about business creation rates. They should be. There are increasingly few reasons to start a business in the UK. Overpriced costs, overtaxed, overstimulated by QE and assinine government expenditure both of which are artificial and arbitrary in their nature. Quote Link to comment Share on other sites More sharing options...
The Spaniard Posted June 7, 2010 Share Posted June 7, 2010 Peston was on BBC News this morning promoting this program. It apparently covers the housing market and FTBs. One thing that Peston said, this morning, was that borrowing is essential, otherwise only those who inherited money would be able to start a business . Usual obfuscation. Sure, borrowing is good for business. What's bad for business (banking excepted) is the unnecessary and hugely expensive borrowing into existence of our means of exchange. The BBC should screen an in-depth analysis of the alternative ways in which a nation might provide itself with an adequate means of exchange. Now that would make interesting viewing. Quote Link to comment Share on other sites More sharing options...
porca misèria Posted June 7, 2010 Share Posted June 7, 2010 Peston was on BBC News this morning promoting this program. It apparently covers the housing market and FTBs. One thing that Peston said, this morning, was that borrowing is essential, otherwise only those who inherited money would be able to start a business . That's perfectly true. Indeed it's the fundamental principle of uncorrupted capitalism that capital + work = value. We all have potential for work, but far fewer have capital. And in a market dominated by greed and fear, it's hard to raise capital for a new (unproven) idea. And without new ideas, our economy stagnates and go into long-term decline. Quote Link to comment Share on other sites More sharing options...
Bruce Banner Posted June 7, 2010 Share Posted June 7, 2010 That's perfectly true. Indeed it's the fundamental principle of uncorrupted capitalism that capital + work = value. We all have potential for work, but far fewer have capital. And in a market dominated by greed and fear, it's hard to raise capital for a new (unproven) idea. And without new ideas, our economy stagnates and go into long-term decline. It is perfectly possible to start a business without borrowing money, it involves saving for the initial working capital, good management, hard work and re-investing the profit for a few years. Quote Link to comment Share on other sites More sharing options...
Stars Posted June 7, 2010 Share Posted June 7, 2010 It is perfectly possible to start a business without borrowing money, it involves saving for the initial working capital, good management, hard work and re-investing the profit for a few years. It's perfectly possible but far less efficient Visualise a farmer who buys the machinery needed with a loan and then pays back the loan with the higher profits from farming with the machinery vs someone who saves first for maybe decades with a lower income in order to get the machinery to start farming Quote Link to comment Share on other sites More sharing options...
Alan B'Stard MP Posted June 7, 2010 Share Posted June 7, 2010 Usual obfuscation. Sure, borrowing is good for business. What's bad for business (banking excepted) is the unnecessary and hugely expensive borrowing into existence of our means of exchange. The BBC should screen an in-depth analysis of the alternative ways in which a nation might provide itself with an adequate means of exchange. Now that would make interesting viewing. What is expensive for business is lenders who won't lend because they can't managed the risk - because they arent the ones who hold it. Quote Link to comment Share on other sites More sharing options...
ken_ichikawa Posted June 7, 2010 Share Posted June 7, 2010 It is perfectly possible to start a business without borrowing money, it involves saving for the initial working capital, good management, hard work and re-investing the profit for a few years. You can only make savings when you have money left, unless you live like a hermit the opportunities for saving money are limited. When you do save money the government inflates and taxes it away anyway. There was a thread about has it always been this way? About the high cost of living. I have peers who think it is completely normal to spend 60% of their take home pay (those which still have jobs) on housing expenses. Add in council tax, food, utilities and they don't have much left over Steve-o would actually be better off on the dole, but he chips away at the coal face andlast month had £16 left in his pocket to last a week. Quote Link to comment Share on other sites More sharing options...
The Spaniard Posted June 7, 2010 Share Posted June 7, 2010 It is perfectly possible to start a business without borrowing money, it involves saving for the initial working capital, good management, hard work and re-investing the profit for a few years. But the overarching money system ensures that only the determined few can do this. Any money they save must already have been borrowed into existence from the banking system. Someone somewhere is paying interest on the corresponding bank loan. Collectively we pay very heavily indeed simply for the capacity to conduct business. Quote Link to comment Share on other sites More sharing options...
OnlyMe Posted June 7, 2010 Share Posted June 7, 2010 You can only make savings when you have money left, unless you live like a hermit the opportunities for saving money are limited. When you do save money the government inflates and taxes it away anyway. There was a thread about has it always been this way? About the high cost of living. I have peers who think it is completely normal to spend 60% of their take home pay (those which still have jobs) on housing expenses. Add in council tax, food, utilities and they don't have much left over Steve-o would actually be better off on the dole, but he chips away at the coal face andlast month had £16 left in his pocket to last a week. And of course no money to sstart a business or invest in their future in some other way. Unless they borrow a shit load more, against the house - which is waht is required in most cases if you borrow business capital from the bank as an individual. Totally ******ed up system, this is on a one way trip to econommic hell. Next we find out how much demand destruction you get when you rob cavers of their spending power and lump it on top of the overstretched debtors. It will not be pretty. Quote Link to comment Share on other sites More sharing options...
Bruce Banner Posted June 7, 2010 Share Posted June 7, 2010 It's perfectly possible but far less efficient Visualise a farmer who buys the machinery needed with a loan and then pays back the loan with the higher profits from farming with the machinery vs someone who saves first for maybe decades with a lower income in order to get the machinery to start farming Obviously, but some people hate being in debt and prefer to fund their own business, that way they retain control . Quote Link to comment Share on other sites More sharing options...
notMyName Posted June 7, 2010 Share Posted June 7, 2010 Linky Seems the program will cover the baby boomers etc, and how unfair it is for younger people now. Link above is to his blog covering the program. Quote Link to comment Share on other sites More sharing options...
Topher Bear Posted June 7, 2010 Share Posted June 7, 2010 I'd love to start a business, a modest one which won't make much money, though could open the door to greater things. However I don't see that I can right now. 1- with everyones spending in decline I don't see that any business is going to do very well, even long standing businesses are barely surviving. I'd be a fool to try right now. 2- I have some savings to invest, but that is supposed to be deposit money, and even if I was succesful I wouldn't get thee return for several years. 3- not being a homeowner it is very difficult to run a business from a rental and banks wouldn't like to lend to me for extra investment cash flow. So to me I see the housing bubble is also choking off new business as well as all the other social ills of th country. Quote Link to comment Share on other sites More sharing options...
Ologhai Jones Posted June 7, 2010 Share Posted June 7, 2010 I watched one of Peston's little animated clips a week or two ago on the BBC website. It was a 'how banks work' type of thing, but I would say it portrayed what I might call a very 'traditional' way of looking at banking, i.e. people deposit savings and receive some interest, others borrow those deposits from the bank at some higher interest rate. He doesn't seem to be the radical type. Quote Link to comment Share on other sites More sharing options...
Roseland69 Posted June 7, 2010 Share Posted June 7, 2010 Peston's blog on the programme here: http://www.bbc.co.uk/blogs/thereporters/robertpeston/2010/06/no_more_money.html Quote Link to comment Share on other sites More sharing options...
porca misèria Posted June 7, 2010 Share Posted June 7, 2010 It is perfectly possible to start a business without borrowing money, it involves saving for the initial working capital, good management, hard work and re-investing the profit for a few years. Try and do that with a human lifetime, and the range of businesses you can start up is extremely limited. For example, you won't get started in the most fundamental business of all (growing food) unless you inherit a farm. EasyStelios is commendably open about the privileged start in life that enabled him to start up a bigger business. But how many Brits can you think of who combine his family wealth with his entrepreneurial drive? Quote Link to comment Share on other sites More sharing options...
ShedDweller Posted June 7, 2010 Share Posted June 7, 2010 Peston's blog on the programme here: http://www.bbc.co.uk/blogs/thereporters/robertpeston/2010/06/no_more_money.html Do you see the first comment ? Peston has a load of "Comedy" followers, who are convinced (so it would seem) that Robert Peston is engineering this crisis for own advantage .. the lunacy that was printed after the Northern Rock thing was insane .. We of course have seen doom mongers and they Make Peston look positively optimistic .. Quote Link to comment Share on other sites More sharing options...
bomberbrown Posted June 7, 2010 Share Posted June 7, 2010 My Windows 7 Media Centre has this program down as a repeat. Original air date 26/03/2010. Odd? Quote Link to comment Share on other sites More sharing options...
Bruce Banner Posted June 7, 2010 Share Posted June 7, 2010 Try and do that with a human lifetime, and the range of businesses you can start up is extremely limited. For example, you won't get started in the most fundamental business of all (growing food) unless you inherit a farm. EasyStelios is commendably open about the privileged start in life that enabled him to start up a bigger business. But how many Brits can you think of who combine his family wealth with his entrepreneurial drive? I did (not farming) and sold it, and bought it back , and sold it again and retired. All in one lifetime . Quote Link to comment Share on other sites More sharing options...
moonriver Posted June 7, 2010 Share Posted June 7, 2010 Reminder... this programme just started on bbc3. Quote Link to comment Share on other sites More sharing options...
'Bart' Posted June 7, 2010 Share Posted June 7, 2010 One thing that Peston said, this morning, was that borrowing is essential, otherwise only those who inherited money would be able to start a business . Strange, I never borrowed a penny to start mine. Quote Link to comment Share on other sites More sharing options...
Stars Posted June 7, 2010 Share Posted June 7, 2010 I did (not farming) and sold it, and bought it back , and sold it again and retired. All in one lifetime . You have never borrowed money? Quote Link to comment Share on other sites More sharing options...
D.C. Posted June 7, 2010 Share Posted June 7, 2010 ohhh. Should I get on the housing ladder? asked as a question. Peston just evading and spouting... Quote Link to comment Share on other sites More sharing options...
spiney Posted June 7, 2010 Share Posted June 7, 2010 Hardly cutting edge is it this program? Herd it all before. Bag o' Sh1te. Spiney. Quote Link to comment Share on other sites More sharing options...
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