Latest: Finance Blog

David Davis resignation undermines Brown in brilliant political strategy

David Davis resignation undermines Brown in brilliant political strategy

The shock resignation of David Davis from the House of Commons is a brilliant political strategy. By forcing a by-election where the Liberal Democrats have agreed not to stand, Labour faces a rout that will make Crewe and Nantwich look like a picnic. And, of course, if re-elected – as expected – then David Davis […]

The UK does not need a national financial advice service

The UK does not need a national financial advice service

The recommendation of a free national financial advice service by the Thoresen Review is deeply flawed, and no panacea for sloppy regulation. The BBC reports on recommendations by the Thoresen Review of Generic Financial Advice, which includes a free national financial advice service, provided for using the internet and telephone services. Commissioned by the government, […]

How US banks are destroying the American economy

How US banks are destroying the American economy

US banks are parasitically feeding on the debt problems of America. The Bush economic rescue plan is already doomed, partly because you cannot beat economic cycles, but also because US banks and lenders are in a feeding frenzy over debt charges. We’ve already heard of the Credit Crunch – mass defaulting on US sub prime […]

Microsoft to buy Yahoo? A last desperate attack on Google

Microsoft to buy Yahoo? A last desperate attack on Google

The announcement this morning that Microsoft has placed a bid for Yahoo finally confirms chatter that has been doing the rounds for a while. But before investors get too excited in the hype, it may be worth exploring a few important criticisms of the deal. As someone who has been a specialist part of the […]

10 Ways Recession Can Help the Environment

10 Ways Recession Can Help the Environment

This is a special guest post from Fion from Fair Home, on discussing how we can improve our impact on the environment. As the world economy begins a slowdown, stock markets threaten to crash, and the USA slowly slips into recession, it’s too easy to look at the negative personal impacts of negative economic indicators. […]

HSBC banking to continues to fail to deliver

HSBC banking to continues to fail to deliver

I’ve written before that HSBC Premier Banking is not the best service around, but unfortunately my experience with HSBC is getting worse. To summarise from before, HSBC Premier accounts claim to offer lots of extra features. But these are applied so selectively that about the only difference a HSBC Premier customer could see over a […]

Threats for the UK economy in 2008

Threats for the UK economy in 2008

The Credit Crunch has dominated financial news over the second-half of 2007. As we prepare to start a new year, a number of adverse indicators continue to threaten the UK economy for 2008. 1. Property The UK property market across all sectors has shown itself to be a core factor in the economic health of […]

Britain’s obsession with debt

Britain’s obsession with debt

The Citizens Advice Bureau is advising people to be extra careful with Christmas debt this year – not surprising considering the adverse economic conditions we currently find ourselves in. Few people are looking to 2008 to be a great economic year, with problems in the financial markets threatening to undermine the entire banking sector. Yet […]

Morgan Stanley predicts new stock market crash

Morgan Stanley predicts new stock market crash

Morgan Stanley issued a stark warning at the beginning of June this year, predicting a market correction in the order of 14% in European equities – which could wipe out as much as 1000 points from the FTSE 100. Bull traders continued on till August. Then the credit bubble finally burst, the credit crunch hit, […]

FSA failing in financial mis-selling

FSA failing in financial mis-selling

Today it was announced that the FSA had fined two brokerages because of potential mis-selling. The action by the FSA just doesn’t go far enough. The Loan Company (trading as Greenhill Finance) was fined £31,500 for failing to make proper affordability checks on the sub-prime mortgages it was selling. Next Generation Mortgages was fined £10,500 […]

Property Investment: what you need to know

Property Investment: what you need to know

It’s scary the number of the people who keep asking me for tips on how to get into property investment. Scary, because at the moment we’re at the end of the property cycle – a downturn in property price growth. Which means the unwary investor looking to invest in property now could be looking at […]

Mervyn King being martyred for Northern Rock

Mervyn King being martyred for Northern Rock

There is a lot you can criticise the Bank of England for. Slow action over 2004-2005 that helped create an ugly housing boom, the instability of which already threatens us, is possibly their greatest failing. But the current fiasco over Northern Rock, and The Bank of England – particularly the governor, Mervyn King – is […]

BBC: Stock market crash in Autumn

BBC: Stock market crash in Autumn

A stark commentary by BBC radio business presenter Greg Wood suggests the real impacts of the subprime mortgage market will hit the stock market in September. And it won’t be pretty. The claim centers on the profit reports from investment banks, starting with Goldman Sachs and the rest following close behind. According to Standard & […]

Subprime Credit Bubble Yet to Burst

Subprime Credit Bubble Yet to Burst

While politicians and inside analysts are attempting to put a brave face on the current turmoil on the financial markets, commentators are likening the current subprime mortgage crisis to a pyramid scheme. In a recent CNN interview, Nouriel Roubini pointed out that current Federal Reserve estimates of the problem may be extraordinarily undervalued at $100 […]

Tax credits overpayment

Tax credits overpayment

When I first set up in business a few years ago, I had no idea what my annual income would be. Tax Credits were still relatively new, but they wouldn’t take an estimate of my income. And I couldn’t give an exact income figure until my accounts were finished at the end of the tax […]

HSBC Premier Banking – not the best service around

HSBC Premier Banking – not the best service around

The HSBC offers a Premier Banking service, like a number of other high street banks. Benefits offered include free travel insurance, preferential lending rates, and improved customer service. Unfortunately, it’s difficult to relate in what way the customer service is actually improved. True, you may find yourself able to avoid queues in high street branches […]

Bank charge cases a bigger threat to UK than stock falls

Bank charge cases a bigger threat to UK than stock falls

Today we’ve seen the FTSE 100 and other major stock indices tumble as the shockwaves from the housing and subprime mortgage market collapse in the USA. These shockwaves are likely to impact the ordinary UK consumer in a number of ways – there’s a danger of pension funds being adversely affected at best, and a […]

FTSE falls as Morgan Stanley warning coming true

FTSE falls as Morgan Stanley warning coming true

At the beginning of June this year Morgan Stanley issued a stark warning – a market correction was imminent, which could wipe out 15% from European equities over the next six months. Despite there being real concerns over the US subprime market and rising interest rates, the bull traders continued unheeding and continued their herd-like […]

World banks continue to try to avert credit crunch

World banks continue to try to avert credit crunch

Banks around the world have been pumping money into financial markets, in a desperate attempt to stabilise them against a credit crunch that could lead to recession. The European Central Bank (ECB) took the lead, with an injection of 95 billion euros, which was soon followed by the US Federal Reserve’s injection of $24 billion. […]

Farm floods to fuel UK inflation

Farm floods to fuel UK inflation

The UK faces extra inflationary pressures, and further interest rate rises, later in the year, due to a combination of flood damage to crops and increasing fuel prices. The severe flooding across June and July has seriously damaged the UK’s farming production, with extensive damage to crops such as potatoes, peas, sprouts, wheat, barley and […]