Tuesday, May 23, 2006

More retailers going to the wall

Retail Bulletin: Retailing business failures up 19% in quarter one 2006

Despite Gordon Browns insistence that the UK economy is thriving, the latest analysis from Equifax, reveals that business failure rates are up in Quarter One 2006 by 13%.

Posted by webmaster @ 10:49 AM (670 views)
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3 Comments

1. denzil said...

This is sad but interesting. There has been much talk recently about shoppers returning to the high-street. I remain unconvinced as to the longevity of any consumer spending increases. Abstention creates a spike of demand that quickly tails off.

Tuesday, May 23, 2006 12:47PM Report Comment
 

2. webmaster said...

And also more and more people are buying on the internet rather than being ripped off on the high street.

Tuesday, May 23, 2006 01:32PM Report Comment
 

3. Bobbill said...

As I see things the UK and US economies are built on unsustainable debt and are both due to collapse like a house of cards.

Now the interesting thing, attempting to protest the overall economy requires the restoration of faith (if it ever existed) in the paper money. This can only be achieved by making money more valuable through the raising of interest rates, as is now occurring in many counties. Now the problem of doing this is harming those who have done it so much good for the economy by getting into debt and of course retail and housing and. It is my belief that this hype on all sides about how amazing the economy is doing is no different to the way EA and other VIs groups talk up the housing market. The aim is to soften the blow of an inevitable cycle of increasing interest rates. If there was widespread gloom about how bad things really are then there would be strong arguments to reduce interest rates in order to give the economy a boost for political short term gain and to hell with inflation which officially is benign no matter what increase occur for the normal household, however more ultimate pain.

The hype of things being really good with sudden shocking increase in sales and a surging housing market etc etc is all a smoke screen to say we doing so well we need to increase interest rates to cool things off. No! its to save the faith paper currency!! (The stock exchange knows better! And rapidly corrects) OK maybe with so much money being squirted at thing it is difficult not to catch some? Whatever interest rates now need to go up.

I see this as a time when interest rates should be lowered to give the economy a boost, however from a very much higher interest rate level than we currently have. During the good times of a few years ago interest rates should not have been lowered, that is when they should have been increasing allowing room to lower them now, not increase them. Alas for short term political gains they get it all wrong and created bubble after bubble, continually arguing that there are no bubbles, its all supported by fundamentals. Lets see what happens when rates rise so that those who have saved and not got into debt can get some reward.

A rise in rates is inevitable if other countries are raising rates because without following the currency will lose value and imported goods will increase in price resulting in inflation the trigger for a rate rise. Now these increases would be in imported items such as food so there is no way such increase can be fudges as benign inflation.

Feel better for my rant, wonder what you think?

Tuesday, May 23, 2006 01:49PM Report Comment
 

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