Realistbear Posted November 10, 2005 Share Posted November 10, 2005 http://uk.biz.yahoo.com/051110/214/fwiwl.html "The consumer credit marketplace has become more difficult and general arrears levels amongst the company's direct unsecured loan customers have risen as anticipated, resulting in increased provisions." "London Scottish Bank added that in order to improve its profitability it was continuing to review the potential of loss making branches having already announced the closure of an additional five branches since the half year-end." An often repeated story in the news these days. The cash flow is running dry as people are finding that they can no longer pay for the goods they bought. This trend is finding its way into the housing market where the exact same problem, albeit on a larger scale, prevails. Repo rates are up everywhere with Merseyside leading the trend with a 78% YOY increase from 2004. The HPC is coming--it has to work its way through the steps and step one is summed up in the above article. The article above talks about BANK CLOSURES--evil omens for the marketplace do not come any stronger than that. Quote Link to comment Share on other sites More sharing options...
BoredTrainBuilder Posted November 10, 2005 Share Posted November 10, 2005 http://uk.biz.yahoo.com/051110/214/fwiwl.html "The consumer credit marketplace has become more difficult and general arrears levels amongst the company's direct unsecured loan customers have risen as anticipated, resulting in increased provisions." "London Scottish Bank added that in order to improve its profitability it was continuing to review the potential of loss making branches having already announced the closure of an additional five branches since the half year-end." An often repeated story in the news these days. The cash flow is running dry as people are finding that they can no longer pay for the goods they bought. This trend is finding its way into the housing market where the exact same problem, albeit on a larger scale, prevails. Repo rates are up everywhere with Merseyside leading the trend with a 78% YOY increase from 2004. The HPC is coming--it has to work its way through the steps and step one is summed up in the above article. The article above talks about BANK CLOSURES--evil omens for the marketplace do not come any stronger than that. Come on - the closure of a few branches of a minor bank is not 'an evil omen' for the marketplace. It is merely the closure of a few branches of a minor bank. Quote Link to comment Share on other sites More sharing options...
Guest horace Posted November 10, 2005 Share Posted November 10, 2005 Realistbear Do you mean `Branch` closures not `Bank` closures? horace Quote Link to comment Share on other sites More sharing options...
BandWagon Posted November 10, 2005 Share Posted November 10, 2005 I hardly think a few branch closures signifies armageddon for the economy. But it does show how nicely things are contracting at the moment. Quote Link to comment Share on other sites More sharing options...
crash 2005 Posted November 10, 2005 Share Posted November 10, 2005 ah yes but its the domino effect, other banks will also consider similar strategies if it becomes common place. Quote Link to comment Share on other sites More sharing options...
Realistbear Posted November 10, 2005 Author Share Posted November 10, 2005 ah yes but its the domino effect, other banks will also consider similar strategies if it becomes common place. Precisely! It demonstrates a trend and the underlying reasons for the trend point to a credit problem of significant proportions. Quote Link to comment Share on other sites More sharing options...
IMD Posted November 10, 2005 Share Posted November 10, 2005 Precisely! It demonstrates a trend and the underlying reasons for the trend point to a credit problem of significant proportions. One incident is not a trend. Quote Link to comment Share on other sites More sharing options...
BoredTrainBuilder Posted November 10, 2005 Share Posted November 10, 2005 (edited) Banks in the UK have been declaring bumper profits. What is the trend being referred to? Edited November 10, 2005 by BoredTrainBuilder Quote Link to comment Share on other sites More sharing options...
IMD Posted November 10, 2005 Share Posted November 10, 2005 Banks in the UK have been declaring bumper profits. What is the trend being referred to? I think it's the trend on this site of some people to clutch at any straw they can find. Quote Link to comment Share on other sites More sharing options...
user_s1 Posted November 10, 2005 Share Posted November 10, 2005 agree with IMB unfortunately. Australian top 5 banks had best year ever - all records broken. However -ALL banks here forecast tough times (like most companies downgrading profits) ahead and unemployment has risen in consecutive months here. Step by Step I agree with - HPC on the way - my own landlord put my place on the market this week - I'll no doubt make some silly offers to p**s him off in a bid to minimize his profit and maximize a potential bargain for me. The owner of my apartment turns around unprofitable business for a living, he has sat on my unit for 12 years - it's a growth area - you dont get better advise than that when smart people sell in growth areas - HPC on the way Quote Link to comment Share on other sites More sharing options...
right_freds_dead Posted November 10, 2005 Share Posted November 10, 2005 (edited) Banks in the UK have been declaring bumper profits. What is the trend being referred to? i think you summed up the trend perfectly by using the word HAVE in the above sentence. Edited November 10, 2005 by right_freds_dead Quote Link to comment Share on other sites More sharing options...
right_freds_dead Posted November 10, 2005 Share Posted November 10, 2005 im sure this was on some property program ? Quote Link to comment Share on other sites More sharing options...
Adam Posted November 10, 2005 Share Posted November 10, 2005 Banks WILL ALWAYS report bumper profits. They can print their own money. Out of interest, do banks ever report losses, without a complete collapse? Or do they just get slightly smaller profits some years? Quote Link to comment Share on other sites More sharing options...
bottletop Posted November 10, 2005 Share Posted November 10, 2005 Went round my neightbours house for fireworks last weekend and his daugter turned up. She works for HSBC and has to achieve 50 credit card signups a month I think it was. She must have been a bit short as she'd already persuaded her mum and dad to apply for CCs and me and mrs bottletop were next on the list. Just goes to show how pressured bank employees are to encourage indebtedness. Quote Link to comment Share on other sites More sharing options...
rollercoaster Posted November 10, 2005 Share Posted November 10, 2005 I think it's widely appreciated by the banking industry that thing are about to get tougher - especially BarclayCards lates 2% APR rise! Britain’s biggest and oldest credit card company said it was introducing the rise because more customers were defaulting on their loan repayments Quote Link to comment Share on other sites More sharing options...
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