Archive for the ‘Economics’ Category

The Greeks will vote no to austerity and then default anyway

November 2, 2011 by · Leave a Comment
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As if the Greek government could possibly cause any more trouble. On Monday they announced a national referendum on accepting the austerity measures demanded by the EU and and IMF so that the next tranche of bailout money can be paid. This led to the markets taking a nosedive yesterday (Tuesday). The problem, and every [...]

The USA is still bankrupt and the markets know it

September 3, 2011 by · Leave a Comment
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The markets have tumbled again this last week and this should come as no great surprise, the USA is still effectively bankrupt. They’re still borrowing huge amounts just to keep cash flowing but fundamentally the US Govt needs to stop spending and start paying. Fundamentally it’s fairly simple: government finance is, in many way, just [...]

Why the markets are heading down and how a budget deficit works

August 7, 2011 by · Leave a Comment
Filed under: Business, Economics 
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This past week the markets have been in turmoil and have fallen sharply with the FTSE down by 10% over the last week. And in my view that’s a good thing. You see, for too  long now the market has been going up (see chart below), it went from around 4500 in May 2009 to [...]

Tesco could be bad for the health of your local economy

June 8, 2011 by · 3 Comments
Filed under: Business, Economics, Politics 
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Let’s be honest, almost all of us have shopped at Tesco at some point in the recent past. Often because they have low prices (and they do) or because it’s your nearest (or most convenient) superstore. However, some local authorities seem to be in love with Tesco so much (and Leicester City appears to be [...]

The budget deficit is the fault of the Labour Government and not the bankers

March 9, 2011 by · 4 Comments
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I often get very frustrated when I hear people talk of the banks and how they caused the credit crunch which caused the budget deficit which has caused the government to make serious cuts to public spending. Because the state of the government’s finances is nothing to do with the banks, it’s Gordon Brown’s fault. [...]

Why the gov’t won’t be able to tackle bankers’ bonuses

February 10, 2011 by · Leave a Comment
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The bonuses of bankers has always been a contentious issue and it’s even more so since casino-like behaviour of the banks is partially blamed for our current financial mess and subsequent recession. But the UK government is in a difficult situation when it comes to making sure that bonuses don’t appear excessive and that the [...]