February 26, 2009
Brits need to think more about saving
Story link: Brits need to think more about saving
The recession is and will continue to put the strain on individual finances throughout the UK, throughout 2009.
That being said, and even though people are saving, there are definitely not enough people putting some cash away for a rainy day. Lets face it though, the interest rates offered by the banks are hardly an incentive are they!?
Brits need to think more about saving
Saga has conducted a survey which reveals that Brits may not be giving their savings enough thought as the recession continues.
The savings account provider found that 38 per cent of over-50s say they haven’t changed their spending habits since the onset of the credit crunch, but as over a third of them have an ongoing savings pot they may be well-placed to weather the financial storm.
New drive for savers
Story link: New drive for savers
As mentioned before, I am definitely with agreement with Abbey Savings here, as I believe the recession has increased the awareness and highlighted the importance of saving and stabilising finances for the future, just in case things get worse.
Abbey Savings has claimed that the recession has given rise to “a new age of thrift” as people cut back on their outgoings in order to save more money.
The bank conducted a study which found that Brits have made an average saving of £3,168 by cutting down on their living expenses in the past year.
The future is bleak for UK finances
Story link: The future is bleak for UK finances
The consumer confidence that is currently present in the UK is at an all time low, with most UK citizens having little or no faith in the Government and their efforts to kickstart the economy.
So far things such as interest rate cuts have done nothing to alter the gloomy path that the UK financial industry is on.
The future is bleak for UK finances
A survey has revealed that the majority of Brits are gloomy about the financial outlook for 2009 and 2010.
The Nottingham, which conducted the poll, claims that 80 per cent of respondents predict that the credit crunch will last until the end of 2010, despite the fact the best efforts of the government and the Bank of England to reverse the shrinking of the economy.
February 23, 2009
Hot summer for police…and banks
Story link: Hot summer for police…and banks
I would hope and think that the description of what could be this summer is an extreme exageration.
Banks probably deserve some kind of stand, but there is definitely no need for violence and of course the police have a lot of important matters to attend to, without uneccessary violence on their hands as well.
Hot summer for police…and banks
Police are preparing for a “summer of rage” as victims of the economic downturn take to the streets to demonstrate against financial institutions, the Guardian has learned.
Britain’s most senior police officer with responsibility for public order raised the spectre of a return of the riots of the 1980s, with people who have lost their jobs, homes or savings becoming “footsoldiers” in a wave of potentially violent mass protests.
February 17, 2009
Credit card payments unstable
Story link: Credit card payments unstable
This is the point where many borrowers can find themselves in extremely sticky situations. Missing one payment is not to bad, but you can soon find yourself being charged fees left right and centre and finding your self in even more debt than you thought
Missed payments by UK credit card borrowers surged in the last three months of 2008 and lifted delinquency rates in bonds backed by such debt to a historical high, according to a report out on Tuesday from Fitch Ratings.
The sharp rise in missed payments, which lifted average delinquency rates among Fitch-rated bonds by 50 basis points to 4.3 per cent compared with the previous quarter comes in spite of card lenders having tightened their standards.
Save East Europe, Save the World!
Story link: Save East Europe, Save the World!
The size and position of the Western European banks makes them an asset to keep world wide finances afloat. The collapse of these banks could be catastrophic for financial institutions not just in Europe, but World Wide as well.
Save East Europe, Save the World!c
If mishandled by the world policy establishment, this debacle is big enough to shatter the fragile banking systems of Western Europe and set off round two of our financial Götterdämmerung.
Austria’s finance minister Josef Pröll made frantic efforts last week to put together a €150bn rescue for the ex-Soviet bloc. Well he might. His banks have lent €230bn to the region, equal to 70pc of Austria’s GDP.
PFI Needs Government Funds
Story link: PFI Needs Government Funds
The recession has hit the PFI hard. Usually they are setting up new projects like schools or hospitals, but the recent reccession means they have been receiving a huge lack of funding, meaning they cant complete their projects. The only way forward Is Government Funding.
The government could have to bail out Private Finance Initiative projects to the tune of £4bn in the next 18 months, an industry spokesman has warned.
Tim Pearson, of the PPP (public-private partnership) Forum, said the recession was limiting loans to firms on PFI projects like schools and hospitals.
February 11, 2009
Recession; worse to come
Story link: Recession; worse to come
The financial regulator has warned that the economic recession that we currently find ourselves in could get even worse and could go on for a lot longer than many economic analysts expected, due to factors that have suggested a negative stretch is ahead.
Britain’s recession could be deeper and last longer than expected despite economic rescue plans, the country’s financial regulator warned Monday.
The Financial Services Authority released its Financial Risk Outlook saying the risks to the British economy are “weighted to the downside and, while the effects of fiscal stimulus and monetary easing remain unclear, the recession may be deeper and more prolonged than expected.”
Banks should Guarantee
Story link: Banks should Guarantee
Banks should offer their depositors a guarantee whether they operate in other countries or not.
When you invest in a company, you don’t have a secure deposit, but at least if they do well your likely to get a healthy return on your money; banks look like a lose, lose situation to me.
Banks that operate in more than one country should guarantee compensation for depositors, no matter where they live, while the deepening U.K. recession threatens more financial institutions, Britain’s market regulator said.
The system of banks outside the U.K. accepting funds from the country’s citizens without setting aside deposit insurance is “untenable,” the Financial Services Authority said today, referring to the collapse of Icelandic banks. The call for a review comes amid the FSA forecast for a U.K. recession that will be deeper than in other countries, including the U.S.
More European bank oversight needed
Story link: More European bank oversight needed
The banks need to have a European regulator, that makes sure all banks are abiding by the strict standards set in each country, of course, finding the perfect regulator could be the biggest challenge yet for the banking sector
More European bank oversight needed
The U.K.’s markets watchdog says Europe should consider giving countries more power to regulate foreign banks they host — or letting a single European regulator do the job instead.
“We have to face the fact that we need either less Europe or more Europe,” said Adair Turner, who took over as FSA chairman in September and launched a detailed examination of banking regulation in the U.K.