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Lost AAA rating

Community Veteran
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Registered: 02-08-2007

Lost AAA rating

Seems we have lost our triple A rating, be interesting to see if this results in even more price increases and/or a change in the governments strategy ?
29 REPLIES
Community Veteran
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Registered: 23-09-2010

Re: Lost AAA rating

Isn't this an excuse for the banking system that caused the problems to raise their interest rates and cause even more problems?
I still think at least one bank should have been allowed to go to the wall. I can't see it would have cost us any more in the long run, and at least it may have focused the remaining bailed out banks attentions in the right direction. That is away from gambling with our money in an attempt to get the fattest bonus possible and to hell with everyone else.

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Re: Lost AAA rating

Quote from: billnotben
I still think at least one bank should have been allowed to go to the wall.

Me too. Perhaps the other lot would then get their acts together instead of just doing stupid things knowing the government won't let them collapse. If one had been allowed to collapse it would have sent shockwaves right through the banking industry.
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itsme
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Re: Lost AAA rating

Northern Rock did collapse.
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Re: Lost AAA rating

@itsme:- beat me to it
Was just typing Embarrassed
I thought Northern Rock "went to the wall", shareholders lost their money, depositors were protected by the FSA compensation scheme, several thousand folk lost their jobs.
I'm not so sure about low-interest rates, it is the time-bomb awaiting Mark Carney’s decision (several years ago) to cut interest rates in Canada to almost 0%.
It funded a spending spree where home-owners borrowed against property for expensive holidays, and lifestyle, this gave the economy a nudge in the right direction, but the apparent ‘growth’ was funded by borrowing against existing assets not real growth.
Personally I’d like to see BOE interest rates around 2% and for banks to undergo a stability check wrt to forbearance on all commercial property.
http://en.wikipedia.org/wiki/Forbearance
edit:- added after reading news:- Wouldn't surprise me to see an increase in Stamp Duty in the March Budget. HK now stands at 8.5% on property >£220k
http://www.bloomberg.com/news/2013-02-22/hong-kong-doubles-stamp-duty-on-all-properties-on-bubble-concern.html
kdoug007
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Re: Lost AAA rating

basically,, the uk is  in a  right mess...
  everyone  is  skint,, no  one  is  spending... Crazy
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Re: Lost AAA rating

Quote from: itsme
Northern Rock did collapse.

..........and in a recent speech the Chancellor warned the banks that the government wouldn't bail them out again. 
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Re: Lost AAA rating

Quote from: kdoug007
  no one  is  spending... Crazy

No one is spending on British made goods! Until we stop buying imported goods the problem is only going to worsen.
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Re: Lost AAA rating

What are 'British made Goods'? If there were any people would buy them!
We don't manufacture 'British' consumer goods here. Those companies that are producing goods are foreign and their profits go overseas!
Geoff,
York.
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Re: Lost AAA rating

Quote from: artmo
Quote from: itsme
Northern Rock did collapse.

..........and in a recent speech the Chancellor warned the banks that the government wouldn't bail them out again. 

Do you actually believe that?
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When faced with two choices, simply toss a coin. It works not because it settles the question for you. But because in that brief moment while the coin is in the air. You suddenly know what you are hoping for.
Community Veteran
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Re: Lost AAA rating

Difficult to say until it happens but seeing the mess Brown/Balls made of it last time I think Osbourne would be very wary.
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Re: Lost AAA rating

Quote from: AlaricAdair
Quote from: kdoug007
 no one  is  spending... Crazy

No one is spending on British made goods! Until we stop buying imported goods the problem is only going to worsen.

At One time this country lead the world in Manufacturing goods but two main things changed that situation. Goods could be made more cheaply abroad and some industries were just not competitive enough, whilst some in the motor industry went on strike for the least reason and produced cars of a poor standard other countries were busy developing and improving on their products. True some current car production in this country is the best in the world but they are all foreign makes and most of the profit will go to other countries.
We were at the top and let it slip through our fingers.
Quote from: kdoug007
basically,, the uk is  in a  right mess...
 everyone  is  skint,, no  one  is  spending... Crazy
No Sure about 'No one'  More like the average person is not spending doubt some of those in the Millionaires class have cut back much on their spending !
I Was abroad recently and walking along one of the Marinas with all the big Yachts and boats asked one guy who was cleaning one, "who owns that boat" and got the reply "Sorry we are told not to tell people who owns it but he is only here for 3 weeks every year"
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Re: Lost AAA rating

A company I worked for could buy from the far east, a piece of machinery fitted with a Honda GX160 engine cheaper than we could buy the GX160 in quantity from Honda direct.
Until wages and salaries in the developing countries rise to the level of those in the developed countries competition will remain one of the biggest problems for the likes of the UK.
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Registered: 12-08-2007

Re: Lost AAA rating

@gleneagles I have to agree with you.  Our manufacturing base was destroyed by poor quality and labour disputes.  These have been addressed in recent years but it could be too late.  The cost of manufacturing is moving back in our favour again as labour rates are increasing elsewhere making it less attractive to buy abroad.
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Re: Lost AAA rating

Quote from: itsme
Northern Rock did collapse

A collapse where it is nationalised/bought out/bailed out with vast bonuses still paid to staff.
A "collapse" most firms can only dream of.
If only my old engineering firm had "collapsed" like that. Instead after debts were nearly paid there was nothing left. No company, no wages, and certainly no bonuses.
That's what I call going to the wall/collapsing.