[Archived] The End Of Global Capitalism?

[AussieinUk]

Ok, I know that Woolworths has gone under. An English mate of mine said that Currys and Dixons were also gone...or about to go.

Is that correct? I haven't seen anything on the BBC.

Not yet pg..

Currys and Dixions are both owned by DSG Int'l, which hasn't been exchange suspended, unlike Woolworths. The CEO of DSG, was stating recently that it will take four years to recover company growth (in retail trading terms).

On Woolworths -I think Deloitte is still trying to find a buyer for parts of of the business, but that is looking unlikely to happen before the Jan 5 deadline.

[philipl]

Some numbers to ruin your Christmas party with (unless you are in banking)

[grizfoot]

Bank cuts interest rate to all-time low of 1.5%

[blue phil]

It looks like a nightmare on the high street- any retailer with significant debt is potentially in trouble.

Mercer's of Blackburn has gone under .

Maybe if they hadn't have sold expensive frying pans which weren't quite as non-stick as they claimed then they'd have my sympathy ....

(Sorry there's no LINK by the way ....)

[Paul]

Bank cuts interest rate to all-time low of 1.5%

Finished paying our mortgage a short while ago. The title deeds to the house arrived today, which has been very interesting to read as it contains the house history going back 170 years.

Anyway on topic the deeds show our first mortgage on the property was at a stunning 14.75% just over 25 years ago. Puts some of the current rates in perspective, plus we had to come up with 15% deposit

[Paul]

Over the weekend I was thinking about interest rates and sustainable borrowing / lending which leads me to pose a serious question for members who might have an insight to this.

Using my own house as the example, in 1983 I took out a mortgage at 14.75% variable for 25 years. By the time this was due for repayment, autumn 2008, we had increased our borrowing for improvements etc to double the orginal figure. At the time of redeeming the mortgage we had been on a five year fix at 4.79% and prior to that 4.99% for five years.

The question has to be how on earth did the financial industry ever think this would work? I realise I'm being wise after the event but the reality is that by the end of the mortgage term I was borrowing double the amount for one-third of the cost. How many other industries would double their sales for one-third of the revenue. It's no wonder things are a mess! Should any of us trust the banking system with our money when this is how it is used?

[Ray-Von]

Mercer's of Blackburn has gone under .

Maybe if they hadn't have sold expensive frying pans which weren't quite as non-stick as they claimed then they'd have my sympathy ....

(Sorry there's no LINK by the way ....)

I think that's a real shame. Although I can't really comment on the hardware section, the toy department was absolutely superb and was infintely better than traipsing to "Toys R Us" at Preston to sort the Kiddies birthday/xmas presents out.

[dave birch]

Over the weekend I was thinking about interest rates and sustainable borrowing / lending which leads me to pose a serious question for members who might have an insight to this.

Using my own house as the example, in 1983 I took out a mortgage at 14.75% variable for 25 years. By the time this was due for repayment, autumn 2008, we had increased our borrowing for improvements etc to double the orginal figure. At the time of redeeming the mortgage we had been on a five year fix at 4.79% and prior to that 4.99% for five years.

The question has to be how on earth did the financial industry ever think this would work? I realise I'm being wise after the event but the reality is that by the end of the mortgage term I was borrowing double the amount for one-third of the cost. How many other industries would double their sales for one-third of the revenue. It's no wonder things are a mess! Should any of us trust the banking system with our money when this is how it is used?

Paul, it's all down to the cost of funds to the lending institution. When you were paying 14.75% the cost to the (bank or whatever) would have been something like 10 or 12%. At 4.79/4.99% the margin in their favour would still be about 2-3%.

[thenodrog]

How many other industries would double their sales for one-third of the revenue.

There's loads of them.

Mercer's of Blackburn has gone under .

Maybe if they hadn't have sold expensive frying pans which weren't quite as non-stick as they claimed then they'd have my sympathy ....

Hey I bought two expensive 28cm frying pans there. Superb pans they are too. You must've been using too high a heat setting.

[blue phil]

The same heat setting that my late (and much lamented) frying pan coped comfortably with for many a year .

I'll stick to Tefal in future (for want of a better expression )

[thenodrog]

One liners..............

1.The US has made a new weapon that destroys people but keeps the building standing. It's called the stock market - Jay Leno

2. Do you have any idea how cheap stocks are? Wall Street is now being called Wall Mart Street - Jay Leno

3. The difference between a pigeon and a London investment banker. The pigeon can still make a deposit on a BMW.

4. What's the difference between a guy who lost everything in Las Vegas and an investment banker? A tie!

5. The problem with investment bank balance sheet is that on the left side nothing's right and on the right side nothing's left.

6. I want to warn people from Nigeria who might be watching our show, if you get any emails from Washington asking for money, it's a scam. Don't fall for it - Jay Leno

7. Bush was asked about the credit crunch. He said it was his favorite candy bar - Jay Leno

8. The rescue bill was about 450 pages. President Bush's copy is even thicker. They had to include pictures - Jay Leno

9. President Bush's response was to meet some small business owners in San Antonio last week. The small business owners are General Motors, General Electric and Century 21 - Jay Leno

10. What worries me most about the credit crunch is that if one of my cheques is returned stamped 'insufficient funds', I won't know whether that refers to mine or the bank's.

[JAL]

Mercer's of Blackburn has gone under .

Maybe if they hadn't have sold expensive frying pans which weren't quite as non-stick as they claimed then they'd have my sympathy ....

(Sorry there's no LINK by the way ....)

Mercers of Blackburn hasnt gone under Blue Phil, they've just decided to close the Northgate shop due to lack of shoppers, the other part the trade side is doing well and will continue to trade.

It all seems political and a damming indictement on Blackburn council as the town centre is being run into the ground with many shoppers deserting Blackburn for places like Preston, Manchester and other retail outlets outside of the town centre.

[thenodrog]

It all seems political and a damming indictement on Blackburn council as the town centre is being run into the ground with many shoppers deserting Blackburn for places like Preston, Manchester and other retail outlets outside of the town centre.

Business rates notwithstanding it is not all to do with the council is it though? Governments have abandoned areas like Blackburn for generations. Once the reign of King Cotton was over and with associated industries folding by the dozen Blackburn quickly became a depressed northern town whose inhabitants were able unable to earn much and therefore spend less.

The malaise spread when first Castle and then Straw in order to strengthen their political position and further their career ambitions allowed mass immigration from the Indian sub continent on the pretext of saving the cotton industry. A case of flogging a dead horse or alternatively closing the stable door after the horse has bolted? The point being that a town nowadays approaching a 40% immigrant population with another 40% either in low paid jobs or long term unemploymant is hardly likely to attract shops of quality. A quick scan around sees only the number of discount stores increasing in the centre with the likes of Netto, Aldi and Lidl currently savaging the established supermarkets. Worse still if we are honest we can all see that shopping in Blackburn centre is not a particularly uplifting experience is it?

People open shops to make profit so it's easy to see why there is now little to be had in Blackburn and even less possibility of attracting quality newcomers. Blaming the council for everything that has happened to Blackburn over the past half century is missing the point somewhat.

[JAL]

Business rates notwithstanding it is not all to do with the council is it though? Governments have abandoned areas like Blackburn for generations. Once the reign of King Cotton was over and with associated industries folding by the dozen Blackburn quickly became a depressed northern town whose inhabitants were able unable to earn much and therefore spend less.

The malaise spread when first Castle and then Straw in order to strengthen their political position and further their career ambitions allowed mass immigration from the Indian sub continent on the pretext of saving the cotton industry. A case of flogging a dead horse or alternatively closing the stable door after the horse has bolted? The point being that a town nowadays approaching a 40% immigrant population with another 40% either in low paid jobs or long term unemploymant is hardly likely to attract shops of quality. A quick scan around sees only the number of discount stores increasing in the centre with the likes of Netto, Aldi and Lidl currently savaging the established supermarkets. Worse still if we are honest we can all see that shopping in Blackburn centre is not a particularly uplifting experience is it?

People open shops to make profit so it's easy to see why there is now little to be had in Blackburn and even less possibility of attracting quality newcomers. Blaming the council for everything that has happened to Blackburn over the past half century is missing the point somewhat.

Its not the governement who should be wiping Blackburns bottom theno is it ? its the people who will and have to turn Blackburn around, sadly over the past decade or more many have decided to leave the town with it being backfilled with immigrants with no finacial wealth to bridge the gap. Hence JW's statement of an impoverished town.

Totally agree with you on the Castle and Straw, how I find myself living in Blackburn only a stones throw away from Ewood Park, yet I have NO POLITICAL SAY on Blackburn as 'Black Jack' has made the good folk of Oakdale vote for Rossendale and Darwen whilst living in Blackburn.

Started going into Preston on Sundays and i've been amazed at the number of people from Blackburn that i've said hello to over the past couple of weeks.

Cant really see a future in Balckburn any more I maybe looking to bail out like the many others before me.

[thenodrog]

Cant really see a future in Balckburn any more I maybe looking to bail out like the many others before me.

Prestons OK............ at the moment.

btw I've instructed my kids to move away asap if they want to maximise their abilities and enjoy a better quality of life.

[yoda]

Prestons OK............ at the moment.

btw I've instructed my kids to move away asap if they want to maximise their abilities and enjoy a better quality of life.

better put up the sign now

will the last one out turn the lights off

[JAL]

Prestons OK............ at the moment.

btw I've instructed my kids to move away asap if they want to maximise their abilities and enjoy a better quality of life.

Thats certainly how I feel about my kids theno, what is the future for Blackburn you just cant be positive about it.

Got to say the majority of large Lancashire towns are very similar including Preston.

[philipl]

This analysis is the simplest and starkest I have seen of what happened in the banking system.

We have now seen three huge bubbles pop in this decade:

- the dot com boom which popped pretty well of its own accord when the Nasdaq started to fall in April 2000.

- the telecoms boom which popped when Enron went bust followed by Worldcom

- the banking boom which popped when Lehman went bust

It is amazing anyone has any financial assets/pensions left after all this.

Clearly light regulation does not work and the neocon economic model works no better than communism, picking another example of failed economic beliefs.