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Badger

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Bank warns of debt doom if interest rates are raised (Alliance & Leicester) with a nice photo of GB looking pensive and a thermometer, can't see much more-missus sent me a picture messgae of the article. (I know)

Also found this from This is Money:

Jobless rise could mean rate freeze

Marc Webber, This is Money

15 March 2006

THE chances of an interest rate rise look less likely after the jobless total increased at a time when shops and factories are hiring staff.

According to official statistics, a further 37,000 people joined the dole queue between November and January, taking the total number of people out of work to 1.37m.

The jobless total normally falls during this time of the year, as retailers and delivery companies hire more staff to cope with the pre-Christmas rush. Whilst many of the job losses came from manufacturing, there is also an indication that a slowdown in high street sales led to a drop in staffing requirements.

The rise in unemployment is a double-edged sword for the Bank of England's Monetary Policy Committee. It will use a fall in employment levels as a reason to hold rates at 4.5% at its next monthly meeting.

There were concerns that it would have to raise rates to curb rising wage inflation. Government statistics backed up the concern over the issue, with the average pay packet 3.5% bigger than it was a year ago.

Edited by Badger

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Grr, another classic 'don't mention the bad news'....

There were concerns that it would have to raise rates to curb rising wage inflation. Government statistics backed up the concern over the issue, with the average pay packet 3.5% bigger than it was a year ago.

...until you can mitigate it....

THE chances of an interest rate rise look less likely after the jobless total increased at a time when shops and factories are hiring staff.

I havn't seen any 'potential IR rise' stories anywhere for several

months!

Pent

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Indeed.

Who remembers Mervyn King saying 6 months ago that the NICE era was ending. Also that the bank could not be responsible for growth (read employment) and that it was up to business leaders to do that.

Mervyn is well ahead of the game here I think and he knows what is coming.

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There were concerns that it would have to raise rates to curb rising wage inflation. Government statistics backed up the concern over the issue, with the average pay packet 3.5% bigger than it was a year ago.

Perhaps they could curb it by reducing some of the rampent public sector wage inflation that they have treated us to, just and idea...

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"Improving employment and low debt levels are continuing to underpin higfher house prices" according to RICs and other VIs, but reality speaks a different message:

http://www.onrec.com/content2/news.asp?ID=10942

The Cost of Bad Debt to UK Firms Soars

16/03/2006 10:33:00

British Firms are writing-off tens of thousands of pounds every year in bad debt due to customers not paying their bills, according to new research. Bad debt amongst larger firms has almost doubled, so they now face on average 88,000 worth of unpaid invoices every year at a 5% profit margin these losses would require additional sales s of 1.76 million to cover the shortfall. If the profit margin were 1%, then the turnover would need to increase by a staggering 8.8 million!
Small Firms (less than 250 employees)
14,000 worth of debt written-off on average each year, up from p from 13,000
24% say domestic bad debt is a serious problem, an increase of 5%
15% say export bad debt is a serious problem, down 4%
38% say domestic late payment is a serious problem, up 4%
27% say overseas late payment is a serious problem, a fall of 1%
39% have to wait between 31 and 60 days after the due date to be paid, down 3%
Larger Firms (more than 250 employees)
88,000 worth of debt written-off on average every year, up from 46,000
21% say domestic bad debt is a serious problem, an increase of 5%
19% say export bad debt is a serious problem, up 7%
33% say domestic late payment is a serious problem, up 1%
34% say overseas late payment is a serious problem, an increase of 5%
32% have to wait between 31 and 60 days after the due date to be paid, up by 3%
Professor Nick Wilson, Director of the Credit Management Research Centre said: The CMRC research has shown an increase in bad debt problems in recent months that are in line with the rising trends in personal and corporate insolvencies.
The rising trend of bad debt and late payment is also spurring more businesses into taking pre-emptive measures to ensure they get paid, according to the CMRC report. For example, 58% of larger businesses use collections agents for domestic and overseas debts, a rise of 14%. Export debts are less of a problem for SMEs, yet 52% use domestic collections agencies, an increase of 10%

But debt is not a problem so the sheeple can continue borrowing without a care in the world.

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  • 331 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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