Monday, January 29, 2007

More IR pressure – Poor Merv!

January retail sales rise fastest in 2 yrs: CBI

Retail sales volumes soared more than expected this month and at their sharpest rate in more than two years, a survey showed on Monday, and retailers are optimistic sales will remain strong in February.The Confederation of British Industry said its distributive trades survey's reported sales balance rose to +30 in January, marking a fresh 2-year high after December's reading of +25.Analysts had forecast a reading of +14 and retailers' own expectations were for a reading of +4.

Posted by tyrellcorporation @ 12:02 PM (627 views)
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26 thoughts on “More IR pressure – Poor Merv!

  • Well now, What bad behaviour by the public – No excuses. 6% before Easter.

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  • Cheekie Charlie says:

    Wonder whether Gordon will bring back MIRAS which he scrapped in 1999. When I took out my first mortgage this was worth 15% discount in interest of the first 30,000 of the loan and was even as high as 40% during the last crash. When people talk about how low interest rates are now they seem to forget about this previous discount! I don’t think there’ll be any help this time around it’ll be too expensive! Incidentally the scrapping of MIRAS was supposed to add more stability to property prices! Nice one Gord!

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  • Cheekie Charlie says:

    Wonder whether Gordon will bring back MIRAS which he scrapped in 1999. When I took out my first mortgage this was worth 15% discount in interest of the first 30,000 of the loan and was even as high as 40% during the last crash. When people talk about how low interest rates are now they seem to forget about this previous discount! I don’t think there’ll be any help this time around it’ll be too expensive! Incidentally the scrapping of MIRAS was supposed to add more stability to property prices! Nice one Gord You’ve created the biggest pyramid selling fiasco in history.

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  • Swervin’ Mervyn will be writing that letter I think …

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  • Looks like the national debt, both private and public, will be shooting up again this year. When will the banks (or possibly government) realise that if you keep throwing money at people they will continue to spend and spend with no thought for the future. Bankruptcy/IVAs have now become a lifestyle choice, meaning that the irresponsible will continue to benefit whilst the responsible will be left to pick up the pieces. I’m not one for excessive regulation, but it’s becoming quite clear that the financial industry are unwilling or incapable of restraint and there is a dire need for external regulation to ensure that they only lend to those that can afford to pay it back. The present situation smacks of children (and financially speaking most probably are) being left to their own devices in a sweetie shop.

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  • Uncle Chris.

    Agree. I believe that the next Govt should look very hard at this situation and perhaps invoke some harsh punishments on those who borrow without any intention of paying it back. Perhaps though thei income tax.

    A financial industry wide db of what a person has alreay borrowed and owes would help banks go a long way to identifying the risky customers.

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  • sirgoogle – that db already exists, which is why it is so absolutely shameful what the banks have done. There is no excuse now for them to wriggle out of stricter regulation.

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  • autopilotengage says:

    I think i’ve worked out what’s happening; the whole world has witnessed Japan lend irresponsibly and benefit royally from it; so looks like a winning formula to everyone else. Of course, there are differences between the UK and Japan though which means we might not benefit in the same way. Sure fire way to kill inflation; let a few banks collapse.

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  • So what if merv writes a letter?

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  • george monsoon says:

    Im already putting in my claim for bank charges, backpayable from 2000.

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  • tyrellcorporation says:

    A mate of mine has just come clean, he is 65k in debt and has just arranged his IVA. His debt will now be just 25k (40k kissed goodbye in an instant) and he has to pay back 5k a year for the next 5 years. Not a bad outcome for a guy who would only buy 160 quid jeans and would only consider the most expensive TVs, drinks, computers, holidays, etc.

    I came away wondering who was the mug, me with my cash earning about 4% a year or this guy who’d effectively walked away with 40K worth of fun for nowt!

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  • autopilot, Japan has not been irresponsible – their low IRs were a necessity to stimulate investment and drag itself out of deflation. The rest is no-one’s individual doing, just market forces as currency traders seek to profit on currency differentials.

    The irresposible ones are the banks who built their current business models (and therefore set the lending benchmark) based on cheap credit becasue of Japan’s low interest rates. Japan has effectively exported its banking problems to the rest of the world, beacuse normally the Japanese yen would have been worthless relative to other currencies because of the excessivley low interest rates. However, the buyers viewed it as cheap money, bought yen by the shedful and sold it to the rest of the world.

    And the UK banks lapped up the new found “free” money. They are the banks that will suffer as their market share is founded on cheap money deals right up the liquidity chain, from the bricks and mortar-secured capital right through to the riskier hedge-fund investments leveraged on that capital. When the music stops, and the last layer of wrapping is taken off, the receiver will get a hand grenade without a pin.

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  • japanese uncle says:

    The Japanese government is 51% stakeholder of the BoJ. The rest is classified!!!
    I wouldn’t be surprised if the rest 49% is owned by the House of XXXXXXXXXX. The bank is supposed to serve as a cash cow for the
    anglo-american banking tycoons.

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  • dohousescrashinthewoods says:

    That is galling, tyrellcorporation. You must be really put out. I wouldn’t mind blowing 40K and walking away.

    George monsoon, I have filed my calims too. I sense the financial sector will be licking wounds this year.
    Between consumer bankruptcies, mortgage defaults (residential and commercial), reclaimed charges and a global slow-down the financial sector looks to be in for sub-1M bonuses.

    I know of redundancies in the sector and parents taking kids out of private school in favour of a substantially cheaper state education.

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  • inflation is eating my savings says:

    The boom is continuing- houses are still shifting here in shitty old Dundee (yes that’s Dundee, not Chelsea) in spite of over 1% of the workforce finding out last month that they are sacked. I think 6% by Easter would be nice for us, but I have a nagging itch that it will still be 5.25.
    The people who lose out during inflation are those holding cash (or on fixed incomes)- us in other words. As 70% of the adult population are home owners, it is almost the duty of the powers-that-be to devalue the currency. Daily Mail readers with shovels and picks are much more threatening than a bunch of marginalised antiestablishment crazies who don’t want to play ball.

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  • TC, Don’t worry the guy can’t even work out the simple cause and effect linking your title and the article – hardly someone to fear at forty paces. (Handbags at dawn may be another matter, however.)

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  • Its been a bad week for Mr.King, poor old Merv lost he’s world bowling crown at the weekend, sooo sad…he he he

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  • tyrellcorporation says:

    “More IR pressure – Poor Merv!”

    I would have thought my assumption that booming high street sales feed through into pricing pressures/inflation is GCSE Economics stage 1!!!

    Ho hum…

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  • TC

    That makes you over qualified to be an Economics Journalist / Estate Agent.

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  • Figures like that cannot surely last, I’m sure (and hope) a few rising bills in February/March will sort out most sensible peoples spending habits.

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  • TC, I’m wondering whether it would have been clever to borrow immense amounts a few ears ago and, insteead of blowing it ( let’s face it we are recalcitrant bears) made it “disappear” conveniently.
    We could now sit on 40 grand to use when the crash finally comes

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  • Sometimes sales are up because prices have been slashed so this does not necessarily mean inflation

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  • magnifico, I’m sure quite a few people with IVAs have ‘nice little earners’ in the foothills of the Pyrenees, paid for with cash (no questions asked). Where better to scarper off to when things go t*ts up at home with the bank/lender.

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  • tyrellcorporation says:

    I read a recent article which said that IVAs are now being targeted by organised crime gangs (primarily from Eastern Europe). Not sure of the details but it does appear to be a system open to abuse. We really are a nation of Dodos…

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  • I have the excuse (which may be valid) as to why Sales in January are so strong – Global Warming – Instead of people being huddled by the fire keeping their feet warm, the central heating has been switched off – saving them money on Gas / Electricity – thus allowing them to enjoy the warm weather walking the high streets looking for bargains. Give us a cold snowy frosty February and all the shops will start bleeting about how bad things have turned.

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