Minutes of the MPC meeting were unanimous in cutting rates. Hence markets believed further rate cuts would follow as early as February. Rates may then fall to 4% by the end of the year. Let’s hope not. In quarter 3 … Read More

The impact of the subprime crisis around the world leading to humongous writedowns by Merrill and others defies belief. The quantum of the issue seems unbelievable. Alan Greenspan in the “Age of Turbulence” provides some insight. (p233). “Of the nearly … Read More

SIV’s structured investment vehicles are investment “vehicles” structured in such a way as to be off-balance sheet entities but operated by banks and asset managers. They invest in bonds or CDO’s backed by mortgage and other debt. At the high … Read More

The Governor of the Bank of England killed hopes of an early rate cut this week saying the rate will not be set to “insulate the banking system from the re-pricing of risk.” “The current turmoil in the financial markets … Read More

Growth : 3% this year, slowing to 2% to 2.5% next year, then 2.5% to 3% in 2009and 0210. Inflation to hit target 2% in 2008 and 2009. Net borrowing, £38 billion in 2007-8, £4.3 billion higher than the budget, … Read More

It’s inheritance tax stupid. Well it didn’t take long for the Chancellor to spot a winner. Today in the pre budget review announcing a rise in the inheritance tax threshold to £600,000 rising to £700,000 later. Taking Osbourne’s thunder at … Read More

It’s the election that never was. Brown’s decision not to call for an Autumn election is no surprise. He has been after the job for fifteen years at least. No-one in their right mind would put all at risk after … Read More

As we called it in August 07, the crash was a great time to average in. By the end of last week, the Dow was over 14,400 and the FTSE had rallied beyond the 6,500 mark. It’s been a great … Read More

This weekend it is reported that Citigroup is planning to bail out Northern Rock providing some £10 billion of funding to the troubled mortgage company. Over the past three weeks the the company has been forced to borrow £10 billion … Read More

As financial crises come and go the latest credit squeeze is a bit of a no show. I mean, people queing outside of Northern rock is a bit of a shock. The last time I saw a run on the … Read More