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NO CREDIT WHERE IT IS DUE…

By ATWadmin On January 30th, 2009 at 9:32 pm

More bad news for the Irish Republic…

“Ireland’s government debt has become the riskiest in the euro zone, surpassing Greece’s sovereign bonds, according to credit-default swap prices. Contracts on Ireland roseto 269, according to CMA Datavision prices, while credit-default swaps on Greece’s debt fell to 248.2 at 5pm. The cost to hedge against losses on Irish debt is now more than Chile, the Czech Republic, Israel, Malaysia, Saudi Arabia, Thailand and China, the CMA prices showed.”

It seems that regardless of Government spin, the Irish economy is now seen as a basket case almost on a par with Iceland, and there is much more trouble to come. Can Ireland survive?

BRITAIN ISN’T WORKING…..

By ATWadmin On January 27th, 2009 at 8:00 am

I see that the sheer scale of the economic recession has been  brought home with the announcement of more job cuts in Britain. In one of the darkest days since the credit crunch started, more than 4,000 posts in Britain were axed, with Corus, the UK’s largest steelmaker, alone cutting 2,500 staff. At ING, the Dutch banking and insurance group, 1,600 British workers were waiting to hear their fate while another Dutch company – the electronics giant, Philips – announced 6,000 job cuts. It has 2,500 workers in the UK. Lucky that Britain is “better-placed” than most other countries to withstand such devastating losses, according to the Great Leader himself.

MONEY FOR NOTHING…

By ATWadmin On January 26th, 2009 at 9:37 am

I see that Lord Rumba of Rio is going to waste millions of tax-payers money bailing out the British car industry.

“The Business Secretary is expected to make the announcement as part of a multi-million pound rescue package for the struggling motor industry. Details of the bailout are expected to be revealed on Wednesday when the Government meets the industry at a special summit. The package is aimed at allowing car manufacturers apply to the Bank of England for credit, which they can use to provide affordable loans to new car buyers.”

This ignores the reality that with a crashing economy and widespread employment insecurity, not so many people aret interested in taking out loans for new cars. Propping up loans for cars is one thing but what if the borrower defaults? Who pays? You and me – the taxpayer. In an economic recession, there are going to have to be major economic adjustments – and the car industry cannot remain immune from this.

THE RETURN OF THE THREE DAY WEEK..

By ATWadmin On January 25th, 2009 at 10:47 am

I am sure there will be those reading this who can remember the dark days of the 1970’s, the days when Labour were last in power, when Britain was on a three day week due to the shocking state of the economy. Now this…

The prospect of the three-day week returned to haunt Britain yesterday as it emerged that ministers are considering paying firms to cut hours in order to survive the recession.

Tens of thousands of businesses are already planning to scale back working hours this year in an effort to stay afloat. But as the country comes to terms with the reality of a recession, it emerged that the Government is looking at compensating employees, through their firms – thereby drawing comparisons with the shutdowns of the 1970s.

While the move would safeguard jobs, it would mean that the financial crisis is on a much larger scale, further undermining confidence in the economy with the suggestion of Britain grinding to a halt.

Major firms such as JCB have already downed tools for one day a week and are considering moving to a three-day week, with state help, if the recession gets worse. The firm’s chief executive, Matthew Taylor, said that he is pressing Lord Mandelson, the Secretary of State for Business, to introduce compensation for workers if their hours are reduced. Some of the jobs earmarked for redundancy, he said, could be saved if the move is introduced by April.

It seems more than possible to me – with history repeating itself as Britain is reduced to the shambolic State in which Labour last left it.

BRITIAN OFFICIALLY ENTERS RECESSION…

By ATWadmin On January 23rd, 2009 at 8:08 am

A black day for the UK economy.

“The UK is expected to officially enter a recession today with the release of new figures that are forecast to show the British economy shrank by at least 1.2 per cent in the fourth quarter of 2008.

The decline would follow a 0.6 per cent contraction in Gross Domestic Product (GDP) in the third quarter and put Britain into a technical recession, defined as two consecutive quarters of negative growth.

A 1.2 per cent decline in fourth-quarter GDP would be the biggest contraction since the third quarter of 1990. However, some experts believe national output could have shrunk by 1.3 per cent or more, marking the biggest contraction in 28 years.”

Against such an darkening background, with soaring unemployment, thank goodness so many Government Ministers are able to use their superhuman powers to see the green shoots of recovery and even light at the end of the tunnel! I think that what is most frightening, if not that surprising, is that real world economic events are leading our political class, not the other way around. It is clear this government does not know what to do, and one could argue that perhaps no government can be sure how to best deal with this looming depression. But when we consider that here in  Britain, the man who presided over the rocketing credit-driven boom and boasted that he had done away with financial bust is now Prime Minister, perhaps we have more to fear than most? It will take a change of government to restore any stability to the UK economy, and what worries me most is that the liklihood of any such change happening lies in 2010. What will happen to our Nation between now and then?   

PRINTING MONEY…

By ATWadmin On January 21st, 2009 at 8:17 am

The really good news for the British government is that media obsession with King Obama’s coronation has proven a very welcome distraction from the incredibly disturbing economic news coming out of the UK.

We now read that the Bank of England is preparing to PRINT MONEY in a last gasp attempt to try and deal with the freezing up of the financial institutions. The posh term for this is “quantitative easing” – but the truth is that this is drinking in the last chance saloon. Meanwhile, international financial experts suggest that the British currency is all but dead in the water and not worth investing in.

Jim Rogers, chairman of Singapore-based Rogers Holdings, said the “U.K. is finished” and investors should sell the currency. Commonwealth Bank of Australia said there was a high risk of a cut to the country’s credit rating outlook and lowered its pound forecast. Prime Minister Gordon Brown authorized a 100 billion pound ($142 billion) bailout for banks. “I would urge you to sell any sterling you might have,” said Rogers. “It’s finished. I hate to say it, but I would not put any money in the U.K.” Rogers correctly predicted the start of the commodities rally in 1999.

It’s a real concern to see the UK teeter on the edge of bankruptcy and when we consider that the man who encouraged the financial credit driven boom that has now bust is our Prime Minister, our only hope is to get rid of this Government before we all crash and burn. Labour isn’t working.

THE MAN WHO SAVED THE WORLD…

By ATWadmin On January 20th, 2009 at 9:22 am

No, this is not about Obama! For goodnesss sake, there are other things happening in the world today!

I’m talking about the man who is his best friend, UK Prime Minister Gordon Brown. You will all recall how Mr Brown’s heroic actions last Autumn – throwing £££billions at the banks – saved our financial system and was instantly copied around the world as a template for success. Indeed it was Mr Brown who stood up in Parliament recently and declared that he had indeed “saved the world”. (Cue laughter from refuseniks)

But yesterday, it became obvious that although Brown’s plan was inherently brilliant, strategically sound and empirically logical – it had one little flaw. It didn’t work. So out came a NEW plan which consisted of..throwing £££billions at the banks! So how has that been getting on?

Well, shares in the Royal Bank of Scotland (RBS) nose-dived, the British Pound has plunged against the dollar and euro, we have more job losses announced today – so as they used to say in WW2, SNAFU.

Aren’t we lucky to have Gordon?

THE END OF PRIVATE BANKING…

By ATWadmin On January 19th, 2009 at 8:51 am

We are edging ever closer to the complete socialisation of the British banking system and I think that there are plenty in the Government, like John McFall for example, that could not be happier about this power grab dressed up as an economic rescue plan.

“The Treasury this morning announced its second package of measures to help bail out Britain’s battered banking sector, including allowing the state-owned Northern Rock to start lending again. Chancellor Alistair Darling said that the measures were needed because if the banking system collapsed, the economy “would come down with it”. But he also hinted that the regulation of the banking sector may be reviewed, stating that “in the world we’re living in just now we do need to look again at the way we supervise and regulate these banks.” The latest deal with the banks will require the taxpayer to pour billions of pounds into the troubled banks in the form of guarantees for new lending and the purchase of a range of loans and other assets now on their books, in addition to the £37 billion pledged in October.”

Back in October, when all those billions of taxpayers cash were poured into the banking system, we were told this was the solution to the problem the banks faced. Thing is – the plan has not worked, let alone provide the taxpayer with any return. So now billions more are being forced through the banking system with no assurance that this will work either. And at what point does the government finally exhaust funds and have to run begging to the IMF for a bail-out, as happened a previous Labour government? Some  economic commentators say 2010 could be the year Labour goes bust. This government is absolutely inept when it comes to dealing with the economic disaster it helped to  create and whilst it sure knows how to spend our taxes, I suggest to you that we will all end up paying for this folly.

GOOD BANK, BAD BANK…

By ATWadmin On January 17th, 2009 at 7:05 pm

God, it just gets worse. Listen to this insane scheme..

“In an attempt to restore confidence within the financial sector, the Treasury will tell the banks of its plan on Saturday. It aims to announce details of the rescue package publicly early next week.

The bad bank plan has climbed the political agenda in the past couple of weeks as the Government has become aware of the extent of the lenders’ bad debts. Sources said that a bad bank would have to take on about £200 billion of toxic assets. That would take the Government’s total commitment to solving the banking crisis to almost £1 trillion in taxpayers’ money that has either been spent or pledged. That equates to about £33,000 per taxpayer. The total sum is equivalent to more than two-thirds of Britain’s annual GDP of £1.4 trillion. The £1 trillion figure includes the £500 billion announced in October to buy shares in the banks and to guarantee their debt. It also includes a further £100 billion fund, which will also be announced next week as part of the rescue package, to provide the banks with cash to lend to ordinary customers and businesses. As well as creating a bad bank, the Government is planning to use Northern Rock as a “good bank” which can dramatically increase lending to individuals and businesses.

Government is INTENT on making a bad situation worse. It is racking up future generations worth of debt and all because it cannot accept that the best solution is to let inefficient banks fail, to cut taxes and to reduce the State sector. Here’s a great evisceration of it from a Vulcan.

GIEVE AND TAKE…

By ATWadmin On January 16th, 2009 at 10:10 am

Even as Labour sooth-sayers claim to spot the odd “green shoot of financial recovery”, and Mr Brown himself boasts that no other major G7 economy is as well-placed as Britain to withstand the gathering economic storm, the Bank of England’s Deputy Governor John Gieve warns things are going to get much worse as we enter the worst financial recession for years.

I dare say he is right but to be honest, I have little confidence in these allegedly wise-heads at the allegedly independent Bank of England. After all, they did not see what was coming until it started to happen, then they reacted too slowly, and now they are all but a spent force having essentially abolished interest rates and ruined savers expectations. His notion that lower interest rates whilst triggering a sharp fall in the pound could be helpful for the economy is also spurious nonsense.  Just about every UK  business that I know has suffered horribly because of this currency change(Pound vs Euro and Pound vs Dollar are the nightmare areas) and I fail to see how Gieve can take solace from that. Perhaps the one lesson this entire financial fiasco teaches as that when push comes to shove, the experts are no better than the amateurs?