Wednesday, July 12, 2023

Mortgage Misery For A Million


 

The Bank of England has warned that nearly a million homeowners across the UK will see their monthly mortgage payments increase by £500 or more in the coming months.

The central bank's models show that the average mortgage payment could rise by £6,000 a year as interest rates continue to climb.

The Bank of England has raised interest rates five times since December in an attempt to bring inflation under control. Inflation is currently at a 40-year high of 9%.

The increase in interest rates is having a knock-on effect on mortgage payments. The average mortgage rate is now 5%, and it is expected to rise further in the coming months.

This means that homeowners with large mortgages could see their monthly payments increase by a significant amount. For example, someone with a £300,000 mortgage on a 25-year term could see their monthly payment increase by £500 if interest rates rise to 6%.

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Tuesday, July 11, 2023

Hunt's Mansion House Speech


 

In his first Mansion House speech as Chancellor, Jeremy Hunt set out plans to make the UK capital markets more attractive to investors.

Hunt said that the government would be "removing the barriers" that prevent pension funds from investing in start-ups and other fast-growing companies. He also announced plans to create a new "innovation exchange" to help businesses raise capital.

Hunt said that the reforms would help the UK to "become the world's next Silicon Valley" and a "science superpower". He said that the government wanted to "make sure our financial services sector has the right architecture to provide the best possible security for investors as well as capital for businesses".

Hunt's speech comes at a time when the UK economy is facing a number of challenges, including inflation and the war in Ukraine. The Chancellor said that the government was committed to "tackling inflation" and "boosting growth".

Here are some of the key points from Hunt's speech:

  • The government will be "removing the barriers" that prevent pension funds from investing in start-ups and other fast-growing companies.
  • The government will create a new "innovation exchange" to help businesses raise capital.
  • The UK wants to "become the world's next Silicon Valley" and a "science superpower".
  • The government is committed to "tackling inflation" and "boosting growth".

Hunt's speech was well-received by business leaders. The Confederation of British Industry (CBI) said that the reforms would "make the UK a more attractive place for investment". The Financial Times said that the speech was "a clear signal that the government is serious about supporting the UK's financial services sector".

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Thursday, June 29, 2023

Bailey Talking Absolute Bollocks Again!

 


As usual Bailey is talking bollocks. The tight labour market is not to blame for inflation.

The cause can be laid squarely at the door of Bailey and his cronies in the Bank of England for failing to recognise that the covid lockdown and spunking up the wall of billions would cause inflation, and for failing to raise rates at the time. 


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Wednesday, June 28, 2023

Government Considers Nationalising Thames Water


 

The UK government is considering nationalising Thames Water, one of the country's largest water companies. The move comes after years of criticism of the company's performance, including high prices, poor customer service, environmental violations, and a staggering debt load.

Thames Water is currently owned by a consortium of private investors. The company has been privatized since 1989, and it has been one of the most profitable water companies in the UK. However, critics argue that the company has not invested enough in its infrastructure, and that it has not done enough to protect the environment.

In recent years, Thames Water has been fined several times for environmental violations. In 2018, the company was fined £40 million for discharging untreated sewage into rivers and waterways. The company has also been criticized for its high prices. In 2022, Thames Water's average water bill was £419 per year, which was the highest in the UK.

The UK government has said that it is considering nationalising Thames Water in order to improve the company's performance. The government believes that a publicly owned water company would be more accountable to customers and would be more likely to invest in infrastructure and environmental protection.

The nationalisation of Thames Water is a controversial proposal. Some people believe that it is necessary to improve the company's performance, while others believe that it would be a waste of taxpayer money. The government is expected to make a decision on whether to nationalise Thames Water in the coming months.

Here are some of Thames Water's current debt figures:

  • Total debt: £13.5 billion
  • Long-term debt: £10.9 billion
  • Short-term debt: £2.6 billion

The company's debt load has been growing in recent years, as it has had to invest heavily in its infrastructure to comply with government regulations. The company's debt is also a major factor in its high water prices.

If Thames Water is nationalised, the government would inherit the company's debt burden. However, the government believes that it would be able to manage the debt and improve the company's performance.

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Tuesday, June 27, 2023

Reg Varney Opens World's First ATM On This Day 1967


 

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Monday, June 26, 2023

Andrew Bailey: The Wrong Man in The Wrong Job at The Wrong Time


 

Andrew Bailey has been the Governor of the Bank of England since 2020. In that time, he has presided over a period of unprecedented economic turmoil, including the COVID-19 pandemic and the war in Ukraine.

Bailey's handling of these crises has been widely criticized. He has been accused of being too slow to raise interest rates, of failing to adequately regulate the financial sector, and of making insensitive comments about the impact of inflation on ordinary people.

In my view, Bailey is the wrong man in the wrong job at the wrong time. He is not up to the task of leading the Bank of England through these challenging times.

First, Bailey is not a particularly experienced central banker. He has only been in the role for three years, and his previous experience was in the financial regulation department. This lack of experience has been evident in his handling of the recent crises.

Second, Bailey is not a particularly strong communicator. He has been criticized for his use of jargon and his inability to explain complex economic concepts in a clear and concise way. This has made it difficult for the public to understand the Bank of England's policies and actions.

Third, Bailey has made a number of insensitive comments about the impact of inflation on ordinary people. In one interview, he said that people should "accept they are poorer" because of inflation. This comment was widely criticized as being out of touch with the reality of people's lives.

The government needs to replace Bailey with a more experienced and capable leader. The Bank of England is facing a number of major challenges, and it needs someone at the helm who can effectively address them.

In conclusion, I believe that Andrew Bailey is the wrong man in the wrong job at the wrong time. He is not up to the task of leading the Bank of England through these challenging times. I urge the government to replace him with a more experienced and capable leader.

 

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Friday, June 23, 2023

The Wrong Man in The Wrong Job at The Wrong Time!

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Thursday, June 22, 2023

Bank of England Hikes Rates by 0.5%

 The MPC has voted 7-2 to hike rates by 0.5% to 5%.

The ever useless Bailey and his chums have finally realised, despite what they assured the world a month or so ago, that inflation is persistent not transitory!

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Wednesday, June 21, 2023

Inflation Figures Pave The Way To Stagflation


 

Today's inflation figures show that the UK economy is a basket case.

-Inflation (CPI) unchanged at 8.7% in the 12 months to May 2023.

-CPI rose 0.7% in the month. 

-Core CPI rises in May to 7.1% from 6.8%. 

-Highest reading since 1992. 

Higher prices for air travel and recreational goods and services were a key contributor to inflation over the month. Food and non-alcoholic beverage inflation 18.4%, eased slightly from 19.1% 

Inflation had been expected to fall to 8.4% year on year.

Why is inflation hitting the UK so hard?

1 The billions spunked up the wall on Covid

2 The Covid lockdowns that wrecked the economy

3 The ever useless Bank of England failing to raise rates early enough to stave this off 

4 The war in Ukraine causing a spike in energy prices etc

All of this means that the UK is nnow facing the prospect of several years of stagflation.

Stagflation is a combination of high inflation and slow economic growth. It is a very difficult economic environment to manage, and it can have a devastating impact on businesses and households.

These factors are all combining to create a perfect storm for stagflation in the UK. If inflation continues to rise and economic growth stalls, the UK economy will be in for a very difficult period.

The impact of stagflation will be felt across the economy. Businesses will face higher costs, which would make it more difficult for them to stay profitable. This will lead to job losses and a slowdown in economic activity.

Higher inflation will eat into disposable incomes, making it harder for them to afford essentials. This will lead to a decline in living standards and a rise in poverty.

The government would also face a number of challenges if stagflation were to hit the UK economy. It would need to find ways to support businesses and households, while also trying to control inflation. This would be a very difficult balancing act.

The threat of stagflation is a serious one for the UK economy. It is important that the government and businesses take steps to mitigate the risk. This includes finding ways to reduce energy dependence, supporting businesses to become more energy efficient, and investing in infrastructure.

If the UK is able to avoid stagflation, it will be a major achievement. However, the risk remains, and it is something that businesses and households need to be aware of.

What can you do to prepare for stagflation?

There are a number of things that you can do to prepare for stagflation, including:

  • Increase your savings. This will give you a buffer in case your income falls or your expenses rise.
  • Pay down debt. This will reduce your monthly outgoings and make you more resilient to financial shocks.
  • Invest in assets that are likely to hold their value in stagflation, such as gold or property.
  • Diversify your income streams. This will reduce your reliance on a single source of income.
  • Make sure you have a financial plan in place. This will help you to stay on track financially, even if the economy takes a turn for the worse.

Stagflation is a serious economic challenge, but it is not insurmountable. By taking steps to prepare, you can reduce your risk and protect your financial future.

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Monday, June 19, 2023

Interest Rates Hit 6% as UK Sleepwalks Into The Next Financial Crisis


 

Interest rates have hit 6%, and the Bank of England is expected to raise them further. Markets expect rates to remain above 6% in 2024. This is bad news for businesses and consumers, who are already struggling with the cost of living crisis.

The problem is that the UK economy is in a very fragile state. Household debt is at record levels, and businesses are facing rising costs. This means that even a small increase in interest rates could have a big impact.

If interest rates continue to rise, it will lead to a recession. This will mean job losses, lower wages, and even more economic pain.

The government needs to do more to help businesses and consumers through this crisis. They need to cut taxes, increase spending, and support businesses that are struggling.

If the government doesn't act, the UK could be sleepwalking into the next crisis.

Here are some of the reasons why the UK is sleepwalking into the next crisis:

  • The UK economy is heavily reliant on debt. Household debt is at record levels, and businesses are also heavily indebted. This means that even a small increase in interest rates could have a big impact on the economy.
  • The UK is facing rising inflation. Inflation is currently at a 40-year high, and it is expected to continue to rise. This is putting pressure on household budgets and businesses.
  • The UK is facing a cost of living crisis. The cost of energy, food, and other essential goods is rising. This is making it difficult for people to make ends meet.
  • The UK government is not doing enough to help businesses and consumers. The government has cut taxes, but it has also raised taxes in other areas. This is not helping businesses and consumers who are struggling with the cost of living crisis.

What can be done to prevent the next crisis?

The government needs to do more to help businesses and consumers through this crisis. They need to cut taxes, increase spending, and support businesses that are struggling.

The government also needs to take steps to reduce the UK's reliance on debt. They need to encourage businesses to invest and grow, and they need to help households reduce their debt levels.

If the government doesn't act, the UK could be sleepwalking into the next crisis. This would have a devastating impact on the economy and on people's lives.

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Friday, June 16, 2023

People Think That The Bank of England is Crap - Source: The Bank of England


 

Respondents were asked to assess the way the Bank of England is ‘doing its job to set interest rates to control inflation’. The net satisfaction balance, the proportion satisfied minus the proportion dissatisfied, was -13%, down from -4% in February 2023.

Source: Bank of England

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Bring Back MIRAS to Help Homeowners With Rising Mortgage Rates


 

Mortgage rates have been on the rise in the UK in recent months, and this is putting a strain on many homeowners' budgets. The average rate for a new mortgage is now over 5%, and it's expected to continue to climb in the coming months.

For many homeowners, this means that their monthly mortgage payments are going to go up significantly. This can be a real hardship, especially for those who are already struggling to make ends meet.

One way to help homeowners with rising mortgage rates is to bring back MIRAS. MIRAS, or Mortgage Interest Relief at Source, was a scheme that allowed homeowners to claim tax relief on their mortgage interest payments. This was a great way to help homeowners save money on their monthly mortgage payments, and it also helped to stimulate the housing market.

MIRAS was abolished in 2000, but there have been calls to bring it back in recent years. With mortgage rates on the rise, now is the time to bring back MIRAS and help homeowners with their monthly payments.

How MIRAS Would Help Homeowners

MIRAS would help homeowners in two ways. First, it would reduce the amount of money that homeowners have to pay in mortgage interest each month. This would free up some much-needed cash for other expenses, such as groceries, bills, and transportation.

Second, MIRAS would make it easier for homeowners to afford to buy a home. With MIRAS, homeowners would be able to borrow more money to buy a home, and they would also be able to afford a higher monthly mortgage payment. This would make it easier for more people to become homeowners, which would help to boost the economy.

Why Bring Back MIRAS Now?

There are a few reasons why now is the time to bring back MIRAS. First, mortgage rates are on the rise, and this is putting a strain on many homeowners' budgets. MIRAS would help to offset the rising cost of mortgage interest payments, and it would make it easier for homeowners to afford their monthly payments.

Second, the housing market is currently in a bit of a slump. This is partly due to the rising cost of mortgage interest payments. MIRAS would help to stimulate the housing market by making it easier for people to buy homes.

Finally, MIRAS is a popular policy with the public. A recent poll found that 60% of people support bringing back MIRAS. This shows that there is a clear demand for this policy.

Conclusion

MIRAS is a policy that would help homeowners with rising mortgage rates. It would reduce the amount of money that homeowners have to pay in mortgage interest each month, and it would also make it easier for people to buy homes. Now is the time to bring back MIRAS and help homeowners with their monthly payments.

 

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Wednesday, June 14, 2023

The Bank of England's Failure Writ Large!


 

Having forgotten the basic rule of economics that a lax money supply stokes inflation, the Bank of England (despite being one of the first central banks to start raising rates) is singularly failing to get inflation under control.

As such, we can expect a long hot summer of continuing interest rate rises.

These will of course push the housing market over the edge, and squash the very modest green shoots of recovery viz the  0.2% rise in GDP in April.

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Tuesday, June 13, 2023

The Bank of England is Asleep at The Wheel

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Friday, June 09, 2023

Russian Banking System Has Crashed

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