Dunfermline 0 Mandarins 5

Posted on March 31, 2009 by John Ashcroft

When Sir Fred Goodwin reported on his RBS encounter with the Treasury he described it as a “drive by shooting”. In comparison, Jim Faulds, the Chairman of the Dunfermline Building Society has just experienced a blind date with Jack the … Read More

Is the mortgage market basing? – latest approvals offer comfort

Posted on March 31, 2009 by John Ashcroft

According to the Bank of England the number of loan approvals for house purchases was 37,937 in February compared to 31,791 in January an increase of 19%. This is not recovery. Compared to February 2008 approvals were down by 56% … Read More

Obama’s tough love for Chrysler and GM

Posted on March 30, 2009 by John Ashcroft

Today President Barack Obama said that neither General Motors nor Chrysler had offered enough in terms of reorganisation to justify further federal bailouts. Greater changes are demanded by the administration including the departure of Rick Wagoner as CEO of General … Read More

Why banks failed – disaster myopia and the madness of crowds

Posted on March 30, 2009 by John Ashcroft

In a further extract from the Andrew Haldane paper this makes for great reading of risk. Why banks failed the stress test. Disaster myopia – we forget or choose to ignore just how bad it can get. “Disaster myopia refers … Read More

Why banks failed the stress test – misaligned incentives

Posted on March 30, 2009 by John Ashcroft

This is an extract from a great Bank of England Paper by Andrew Haldane which explains why banks failed the stress test – disaster myopia, network externalities and misaligned incentives. In this extract an insight into the latter is provided. … Read More

Barclays shares soar – the bank passes the candles and cans test

Posted on March 30, 2009 by John Ashcroft

Barclays shares soared this week on news the bank had passed the FSA stress test. Over the past few weeks the Financial Services Authority has subjected the asset portfolio of the bank to intensive testing and evaluation. Known as “candles … Read More

UK Retail sales increase by just 0.5% in February

Posted on March 26, 2009 by John Ashcroft

According to the latest information from the Office for National Statistics, retail sales in February, increased by just 0.5% compared to February 2008 the lowest growth since September 1995. Non-specialised stores sales fell by by 5.2 per cent and food … Read More

UK Inflation : Governor’s letter and the reply they wanted to send

Posted on March 25, 2009 by John Ashcroft

Chancellor,February's inflation out turn is somewhat higher than expected. That could reflect pass-through of the exchange rate depreciation to consumer prices since much of the strength in the out turn appears to be concentrated in components where a large share … Read More

CBI in clear warning to the Chancellor

Posted on March 24, 2009 by John Ashcroft

The CBI is calling on the Chancellor to deliver a Budget, shaped around jobs, investment and competitiveness. "Don’t spend any more money but outline a clear and credible strategy to get the public finances back under control." The CBI is … Read More

February Inflation rises to 3.2% – deflation will prove elusive

Posted on March 24, 2009 by John Ashcroft

UK Inflation CPI annual inflation increased to 3.2 per cent in February, up from 3.0 per cent in January. RPI inflation slowed to 0.0 per cent down from 0.1 per cent. RPIX inflation – the all items RPI excluding mortgage … Read More

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Monthly Archives: March 2009

Dunfermline 0 Mandarins 5

Is the mortgage market basing? – latest approvals offer comfort

Obama’s tough love for Chrysler and GM

Why banks failed – disaster myopia and the madness of crowds

Why banks failed the stress test – misaligned incentives

Barclays shares soar – the bank passes the candles and cans test

UK Retail sales increase by just 0.5% in February

UK Inflation : Governor’s letter and the reply they wanted to send

CBI in clear warning to the Chancellor

February Inflation rises to 3.2% – deflation will prove elusive