Category Archives: Finance

New Year, New Stuff

It is easy with hindsight to look back and say if only. If only the Labour government had properly regulated the financial institutions in London we might not be in this sorry state.

Hindsight is a wonderfully thing.

Of course that does not preclude any government from properly planning and preparing resources.

One must ask themselves why is it that the UK may well with in the next ten years start to suffer black outs due to inadequate planning in electricity supply. What is more surprising is that we do not even have the skills to build a modern power station. We are totally reliant on the French EDF controlled company to do it for us. If a smaller percentage of the 400 billion pounds that we spent on bailing out our high street banks at a debt of 10,000 pounds for every single person living in the UK, was to be spent on upgrading our transport infrastructure. We might than have a few more engineers that could be used for our own energy related business. Not forgetting of course that we would have a coherent and reasonable transport network like the one that our European neighbours experience.

Long term planning

Suggest long term planning to politicians here is like talking about SDP winning the next election. It is a reasonable choice, but you know it is not going to happen. May be politicians could be more accountable if they were given a free vote on all legislation in parliament. Instead of the old line of using government whips to insure the party line is met. Than people can decide for them selves way we can not regulate a bank to lend money reasonable.

It is interesting to note that Obama has chosen to keep the current defence secretary from George Bush. The question now is who is he more accountable to Obama, the Republicans or the American public. A shrewd move indeed.

Borrowing Money

Why do politicians think that spending more money is going to save the economy? Does George Bush or any other world leader think that they can remotely buck/control the economy.

If your economy is already broken and by that I mean that is it has stopped making money. Why borrow? The current trend in the world is than to spend more money to solve it.

Let me see if I understand it correctly? 

You do not have any money,

the companies are not making any money but you want to borrow money to supposedly solve it.
I can understand the theory about borrowing money to grow a business, but borrowing money to prop up badly run companies does not sound like a business plan to me. Especially when it is Tax payer’s money. I know which way I will vote.

What would be your advice to the government?

Novel Ideas for Saving Money

Vegas or BustI was just listening to radio four where the conversation was focusing on loan sharks. Loan sharking has increased significantly in the last six months due to the current economic crisis, as it usual does. I do have a lot sympathy for people who find themselves in difficult times. I was rather impressed by some of the ideas talked about to help people handle their finances better. In fact I think the model can be use by anyone entrepreneurs included.

The ideas that was talked about on the program was that you can loan as much as you can borrow. So if you save 6 pounds a week from now until Christmas you will have saved £150 pounds. This bank/corporation will than lend the some amount to the person over the Christmas period enabling them to cover some of the extra cost Christmas brings.

The theory is if you can encourage responsible saving you can than encouraged responsible lending. Will the Labour goverment do the same with our current debt or go over the 60/40 rule. What do you think?