Archive for September 2008

Scottish Parliament to rescue Banks?

Its refreshing to see that the unloved Republicans have stuck to their guns and said no to intervention – even it it means a crash and the collapse of their economy and all its global fallout.
Why? Because in the UK the opposite situation exists where an underlying fundamental ideology of nationalisation to the rescue still exists!

Or does it?

I’ve just heard A Darling say ‘we’ll do whatever it takes to keep the economy stable’

Maybe, the Yanks are right – You cannot underwrite a House of Cards Institutional collapse – especially if your not getting the profit in the good times.

Obviously the UK Government thinks you can!

When the Japanese banking system collapsed in 1990 the only solution was the introduction of ZIRP – Zero Interest Rate lending from the State to the Banks in order to kick start the circular liquidity flows. It took ten years to recover.

Maybe there’ll be a honeymoon periods in a month or so after Obama wins the US election handsdown.
It might even help Mr Browns UK image, after all the Conservatives here (the republican equivalents) are marching around their annual conference here like headless chickens, triumphing the rise of New Conservatism and already talking about power.
Why the glum faces then?
These same people are being shot by both sides. The collapse of their beautified banking system and the value of their shares free falling, their system falling into the hands of the enemy (the current Government) has rather taken the shine of the promised election victory to come!

Well whoever wins it has just won a bucket of ****

Rumours are abounding that Lloyds board are trying to renegotiate the takeover of Halifax Bank of Scotland – its sending waves around the industry.

Well Mr A Darling it looks like you may have your first bank to nationalise….
It will probably be closely followed by Royal Bank of Scotland!

Hang on! – Whose in Charge? – a certain Scot Mr G Brown

Maybe he’s planning to hand the Scottish banks over to the Scottish Parliament to run

Now there’s a thought – Alex Salmon in charge of 2 of the UK’s largest financial and insurance comglomerates!

Banks Fall – Whose Next? RBS Looks dodgy

Just been watching Sky news and the relative drops in the value of shares of the biggest banks ( and therefore insurers) in repercussion to the Dow dropping 777 points overnight.

Not surprisingly HBOS were top of the list with a massive 17% fall and then very worryingly were RBS with nearly 12% fall in the value of their shares!

The others like Lloyds and Barclays looked stable around the half to one percent fall.

So this tells us that the City thinks RBS are the next to fall

If this happens the ramifications to the Insurance world will be massive as RBS is a major player in the personal lines section.

Bradford & Bingley Nationalised

Hurrah !
Now we the taxpayers rescue another failed business – Bradford and Bingley – and as a country are now the proud sponsors of Bradford City FC (as well as Newcastle Utd!).

bradford and bingley insurance

Bradford and Bingley (aka The Government) also sponsor the Bradford Bulls Foundation, Yorkshire County Cricket Club Indoor Cricket Centre and Bradford and Bingley RFC incidentally.

Bradford and Bingley were one of the major culprits in the creation of the Credit Crunch with their ridiculous overloading of buy to let mortgages and self certified mortgages accounting for over 80% of their business, and directly accounting for the outrageous growth in house prices. It was bound to fail and City Analysts were predicting months ago that their shares were worth nothing -much to the annoyance of the banking sector!

It Stinks – these bad businessmen are allowed to create a house of cards in the UK housing market and walk away from it leaving us the taxpayers to pick up the pieces – whatever happened to the free market? And where were the FSA in all this?

On an Insurance front their book of business is relatively small in the larger scheme of things with a lot of home insurance particularly landlord insurance cover and mortgage protection insurance policies sold on the back mortgages.

Our advice to anyone holding these policies is to switch today. This applies particularly to mortgage payment protection which is a monthly policy and is easy to cancel and set up elsewhere. With lenders charging more than five times the rates for this type of insurance than the independent sector – you would be wise to switch mortgage insurance today!

Taxpayers sponsor Newcastle United – Is this Right?

Just been watching a Joe Kinnear video talking about the future of Newcastle United.
Looking at the billboards in the background, and across the shirts, of the main sponsor ‘ Northern Rock ‘ it got me thinking.

Hey WE – the taxpayers (proud owners of Northern Rock) – are sponsoring Newcastle United.

Tony Blair must have made a pact with Gordon Brown when he left office!

This is definitely nationalisation through the backdoor!

Maybe you’re a shareholder or investor who lost money in the Northern Rock collapse – what are your thooughts about this – Comment and let me know!

As a taxpayer I insist they sell Michael Owen to a London Club!

Seriously though, its not just the Football Club or Northern Rock or the Government which has been affected by the credit crunch – My best selling Newcastle United Credit card website has had its product – the MBNA Newcastle United credit card- discontinued due to lack of sales!

So its not just the club up for sale – if there’s any Geordies out there who would like to purchase some prime ( currently redundant) internet real estate email with your offers! – any offer considered – it’d make a good email – maybe!!

Fantastic Value unemployment PPI products released to cope with Credit Crunch

Safety First has announced the release of Unemployment only mortgage , income and loan protection products, backed by Munich Re to cope with the demand caused by the gloom in the money markets and the credit crunch.

These products are not age related and offer better value for money as the premiums do not increase each year. Monthly premiums, flat rated lifestyle related, these insurances offer great value for all employees looking to safeguard their short and long term future in an increasingly unstable economic environment.

Safety First welcome employees from within the banking, insurance and finance sectors.

Unlike many other products on the market, you are covered for unemployment after just the first month from which you take out cover.