Thought Id start this one going because its rather dead on this board at the moment and I suppose all my usual muckers are either at the Stella tennis event watching Dim Tim (lose again) or at Henly Regatta eating cucumber sandwiches (they wish,...NOT).

Anyway please feel free to just talk to yourself blast away and let it go on any company or subject you wish. Just wish Id thought of this one before.

cheers GF.

In this society people in positions of power, influence and control get away scot-free whatever they do, however they mess up.
Remember Norman Lamont? Fixed parity range nonsense. Now treated as a guru on financial matters.
Applegarth of Northern Wreck? Had to be forced out. Lent long, borrowed short in the wholesale markets.
Another "expert" coming to a screen in your living room soon, no doubt.
Rowan (Sharia, sharia, I've just met a pearl called sharia) Williams. Poisons Moslem/Christian relations. Still in position.
Coming to a shopping mall near you:
http://news.bbc.co.uk/1/hi/world/middle_east/7260314.stm

I don't think you will have seen a lecture like this ever before.

Hans Rosling: "Watch the end of poverty"

Corruption in the EU.

According to The Daily Telegraph, a report has been completed into corruption in the EU. The report has been so damaging that only MEP's and a select band of other officials are allowed to read it. It must be read in a sealed room where no notes are allowed or any other form of record can be taken. A form of confidentiality also has to be completed and signed. When the newspaper approached officials re this document being secret, they replied that it is not secret, it's confidential. They went on to explain that if a document is secret, no one would be allowed to see it, whereas if a document is confidential only certain persons can see it, (true). Obviously it is not for the likes of those who pay vast amounts of money into this corruption machine, IE us, to have the knowledge of it's contents. No wonder the EU accounts have not been signed off for the last 10 years. At least Robert Mugabe is only screwing his own country.
Thank goodness we are still ruled mainly from this country where our own politicians can be trusted in the knowledge that they are honorable, honest and generally incorruptible.
And before anyone tries to persuade me otherwise, I still believe in the tooth fairy, Santa Claus, and little green men.

A couple of interesting indicators from my area of expertise (?), for anyone interested.
The lender who has tried to plug the gap by using Swiss money has announced that their lending criteria is to be made more robust.
Secondly, there are virtually no lenders prepared to consider 100% lending at the moment. There are a couple of minor ones who will do so for professionals only, but other than that its down to C&G on the high street.
Even those who are part of a group of lenders and whose specalist area is designated as the 100% arena (such as Birmingham Midshires of the HBOS group) have withdrawn their 100% offerings.
This seems to me to mean that the sector is no longer confident of property values remaining stable. It is not the banks, it is the mortgage indemnity insurers who have decreed the risk to be too high to take on their books. Indeed we are seeing the higher lending charge applied at lower and lower loan to values recently. 12 months ago, a LTV of 85% was rarely charged such a fee. Now 75% is common.
No matter what they say in public, this points to them predicting a worst case scenario of values falling by as much as 15% over the next couple of years. Prices sold only indicate the history. The underwriting criteria indicate the potential future and it doesn't look too rosy.
it may not come to pass. Bankers and insurers get it wrong, but they are planning for it.
Alan

Alan,

Spot on. A very rocky ride for the next 12 months at least. It's a sign of lacking confidence in the countries finances and peoples spending power.

'This seems to me to mean that the sector is no longer confident of property values remaining stable. '

Presumably, we can expect to see property values rise then, Alan, for when did the financial sector ever get anything right?

Prices are still rising in parts of London - always a strong indicator.

Flat for a year or two maybe, then they'll begin to rise again. I've seen it all before, even when interest rates were 15% and higher (early 80's) property prices rose against all predictions of doom and gloom!

TBH Greek & Oblo,
you may as well stcik a pin in the chart as try and make a prediction at the moment. The banks and lenders are hiding away at the moment, but what is left are certainly battening down the hatches.
The product that was available 12 months ago is a distant memory. 125% loans - gone, 100% secured loans for self cert - gone, unlimited adverse above 70% - gone.
This is not due to thinking people will be unable to repay it, these lenders don't give a damn, it is the thought that they cannot get their money back when it does go unpaid, coupled with an uneasy feeling that the FSA will blame them for wreckless lending and make the courts refuse to assist in delinquincy cases.
Fears are growing in the market that for the sake of popularity, the treasury and FSA between them will concoct new rules to make it very difficult for niche lenders to recover their debts, making up some cock and bull crap about the lenders knowing what they were getting into.
That, combined with stagnent (at best) property values is a double whammy the industry cannot live with and so they are preparing for it to happen.
My belief is that the FSA and treasury need to make it clear that they will not do this. While the industry believes it might, they will restrict lending and that will cause the property squeeze. If prices do drop, it becomes a self fulfilling prophecy.

Watch out for your credit limit being slashed without too much warning - and its consequences!

Alan, Oblomov.

I truly believe that banks care deeply about their customers, and not just the huge profits they make. Just as Supermarkets are only going greener because they are passionate about the environment, and not because they fear loosing customers (money) to a competitor that goes greener first.
Drug companies who also often receive a bad press are surely not in it for the sqillions of pounds they make in profits, but for reasons of compassion to fellow man/woman and those not sure (must be politically correct).
Some people also believe that our MP's are just in it for salary and all the perks (legal and otherwise) whereas I believe they do the job for the pure satisfaction of helping there fellow citizens toward a better life.

I could go on, but someone has to stand up for these often maligned institutions.

Greek, I'm sure there are individuals in the industries you mention who do care - such a the scientist trying to find cancer cures, etc - but the industries surely have to be led by dispassionate managment motivated by the figures if these enourmous entities are to survive and, in the case of the drug companies, finance research. A cancer cure is surely worth any price.

Alan, I think what you're saying is that lenders are being much more careful who they lend to - thats a good thing and will bring back confidence and sustained growth to the housing market. Its happened before - the 'slump' in the 80's came after lending rules relaxed - the recovery followed a hardening of lending rules. The current signs from lenders are good rather than bad, for the medium to long term property values - though that may not be seen as good by some people!

OB,

Fully agree re your comment on individuals.

Greek - your tongue in cheek remarks would no doubt be welcomed by the banks' directors, surrounded by acolytes who tell them what they want to hear. I have no doubt they believe they care about their customers, but if you talk to bank staff at the street level, certainly the ones I have spoken to over the last few months, there is an enormous gulf between what the directors believe is happening and the reality. Staff have been under great pressure to meet sales targets and there has been a seismic change in overall culture which has left many feeling deeply unhappy. The integrity is just not in the business any more (particularly where investment banking now dominating such as BARC) and when trust begins to disappear that leaves me nervous about their future.

Agree Partridge - my wife works in a bank. Totally sales driven now at street level - not what she and many others signed up for.

Thanks Oblo - I have nothing against a sales culture as such (clearly essential in any business if it is to be successful) but it is the manner of implementation adopted by some banks which perturbs me. It appears that there is the threat that the perceived bottom x% of performers are told to improve or face disciplinary action which I find abhorrent - and unlikely to result in practices which benefit the customer.

Under FSA guidlines it is almost impossible to fire someone for not achieving sales targets.
On regulated products the FSA takes the view that it is not the fault of the advisor/salesperson that the people he has talked to would be better advised to go elsewhere or do nothing.
Ridiculous red tape. What chance has a sales industry got if salesmen cannot be fired for not selling!!!!
I could get a job as an IFA tomorrow and never sell a single product, yet stay in the job till retirement. Providing I can show I am making sufficient appointments to see people and I am working with due diligence and within the confines of compliance.
What other industry could ever survive under such a hamstrung regime?

It isn't being fired thats the worry for bank staff, Alan - If you don't fall into place in the sort of environment partridge and I are talking about, life can be made very difficult for you by those further up the management team who are also under pressure to deliver sales. The staff aren't encouraged to help unless helping is likely to result in further sales.The customer suffers, the staff suffer.

As a pensioner I decided that after a lifetime of credit cards now was the time to call a halt and cancel my cards which I have done.
Now with all this credit crunch business, and nobody wanting to lend to anybody, what do I find on attempting to stretch my pension as far as possible in Sainsbury.
I am greeted with this nice young lady at the entrance offering me a Sainsbury credit card.
The whole store is emblazened with balloons and posters extolling the virtues of a sainsbury credit card.
Do these people live on another planet, or is it covert government plan to grab more of our money.
The store is decorated better than at Xmas.
I think it`s time I went to live on another planet......any ideas.

They live on the planet where pigs fly, porky.....

Mrcharts your right why did`nt I think of that...LOL
Cheers.

This thread is in danger of becoming far too serious ,time for one of these.