The world's second largest economy has reported it's sharpest drop on record yet remains positive about recovery. Economists are apparently in agreement that Japan is over the worst despite a decline in GDP of 4% in the last quarter, marking a full 12 months of decline totaling more than 15%. In contrast the UK and US only declined by 1.9 and 1.6 per cent respectively in the first quarter of 2009. The crisis is now impacting on domestic spending as the effect of falling global demand takes it's toll and exports plummet. Workers are being laid off as production is cut back but the ...
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'Positive results from a Negative Economy' is the way I am going to sum up the year for me financially. Although the Western economies are in a steep decline this does not mean that individuals cannot create a positive financial environment. I am pleased to be able to report that my goal of paying off credit card debt is now within reach (and don't forget I have paid NO interest on this debt for two years) The green graph above was my debt progress about ten months go. The latest version (pinky-blue below..) shows how I have been able to continue to shrink this ...
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The UK economy is obviously not the only economy to be hit by the current crisis, but it may be hit harder than others - why is this? The fact is that over recent decades the UK economy has shifted towards service industries and has been particularly successful in the financial sector. The UK has concentrated on new innovative financial 'products' and is therefore overly exposed on this front. Although we are heavily reliant on the financial sector, we are nowhere near as exposed as Iceland, who's entire GDP was more or less totally dominated by it's banks. Nevertheless, it is a fact that ...
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Buy-to-let was a buzz-word that became a market of it's own in the last decade or so as many individuals discovered it as a means of generating huge amounts of money, and as a side-issue, huge amounts of debt. Whilst it is certainly true that the 'Buy-to-let Boom' is over, buy-to-let as a concept is still a feasible business model as long as not taken to the extremes that have left individuals with millions of pounds of debt and a declining property portfolio. One such person was interviewed on British television this week, stating that their debt stood at something like £6.5m and losing ...
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The Government are not going to allow Sir Fred to take his outrageous pension of £693,000 a year, vowing to take 'any measure' to prevent this happening. Sir Fred Goodwin thrashed out his pension deal in October when bailouts were being worked out, and at 50, would be very nicely set up for early retirement having just led RBS to the very brink of collapse according to government ministers. In reality, Sir Fred is being held up as a bit of a scapegoat as he is cannot be held personally responsible for the credit crunch. However, allowing a former banking chief who's recent track ...
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