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Realistbear

Mega Accountants Ernst & Young Warn On Insolvency Explosion

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http://www.ey.com/global/Content.nsf/UK/Me...encies_mount_up

Households feeling the squeeze as insolvencies mount up
Rising interest rates, increased energy costs and falling disposable income will only exaggerate future problems for individuals and corporates
Liz Bingham, London Head of Corporate Restructuring at Ernst & Young comments on the insolvency figures released today:
“The insolvency figures released today show that for
both
individuals and companies it has been a rocky few months and the outlook is increasingly uncertain.
“The fate of the corporate and consumer is inextricably linked,
rising energy costs, for example, put pressure on businesses as well as individual households. Corporates are often unable to pass the increase of operating costs on to the consumer and if businesses have to swallow these costs it will have an inevitable effect on profitability. The Ernst & Young discretionary spend survey showed ‘fixed’ monthly household costs have risen more than 30 per cent since 2003, and with yesterday’s decision to raise interest rates consumers are going to find themselves with less disposable income. The higher cost of borrowing is going to lead to further insolvencies and households are going to feel the squeeze.
“In corporate land the number of complex and highly leveraged deals especially in Private Equity leave little margin for error and although available money is still cheap for both corporates and consumers this stores up problems that are now coming home to roost.”
There was further gloom too, with figures released by the Council of Mortgage Lenders showing that the number of properties taken into possession by UK mortgage lenders rose to their highest level in five years.
A total of 8,140 properties were taken into possession in the first half of 2006, equivalent to 0.07 pct of all mortgages and a jump from 5,690 in the second half of 2005.
This is the highest number of possessions since the first half of 2001
.

The bottom line is worth repeating:

“In corporate land the number of complex and highly leveraged deals especially in Private Equity leave little margin for error and although available money is still cheap for both corporates and consumers this stores up problems that are now coming home to roost.”

Edited by Realistbear

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Summit up wit tha link

http://www.ey.com/global/content.nsf/International/Home

Seems to work okay :)

Tried again and it takes you to E & Y website--they must have pulled the farticle :(

Found it--you enter "households" in their search engine and it will pull it up.

http://www.ey.com/global/Content.nsf/UK/Me...encies_mount_up

Their headline: Households feeling the squeeze as insolvencies mount up

Edited by Realistbear

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  • 302 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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