The taxi drivers’ guide to recession
You can tell when times are tough because you can hail a taxi. But there is more to this model of supply and demand than meets the eye. Read the rest of this post »
BLOGS
The Edge
Richard Northedge takes on corporate finance
Savers shouldn’t be rewarded for chasing risky Icelandic rewards
What on earth were people thinking of when they put their savings in an Icelandic bank? What on earth is the chancellor doing baling-out those savers?
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Darling’s bail-out looks like capital but is a loan
The state bank bail-out is not nationalisation after all. The £50bn of preference shares the government is offering to buy looks like capital but, as any finance director knows, is really a loan. It protects the taxpayers’ money but there will be no windfall if banks’ fortunes soar again.
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Borrowers rescue plan dangerous
Governments think if they help the few borrowers unable to pay their bills they will help relieve the banking crisis. What they’ll do is encourage lots more to default and thus make the crisis worse.
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Mandelson means business
Peter Mandelson has a reputation as a strategist and a schemer. We should be pleased the Department of Business has a man with such talents in charge.
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Watch for the good news on housing
There’s nothing new in reporting bad news about the housing market, so here’s the DoF guide on how to spot green shoots.
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The water fashion dries up
If the global recession has done one thing it is to puncture the fad for drinking bottled water. Consumers in developed countries have rediscovered the tap.
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Interest rates will fall so get on and do it now
It won’t help much but it won’t do much harm either, so if people want an interest rate cut, go on - let them have it.
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Changing the rent days has a price
Of course retailers don’t like paying their rent three months in advance - many of them are not sure they’ll still be in business in three months’ time. But a lease is a contract and it’s too late to tear it up now.
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How should the banks thank taxpayers for their help?
When the fire-fighting is finished and the rescue completed, there are serious questions for what remain of the world’s banks. Capitalist countries must ask whether banks can again be trusted.
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