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sizzler944

Listed below are comments made by sizzler944 between Monday, 21st September 2009 and Tuesday, 1st December 2009.

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Shouldn't banks work for us? 3:40pm on 01 Dec 2009 Pawns or players

Garage sales are not wealth creation. Retailers are because they are part of the process of taking a raw material, adding labour and capital, to provide a product at point of sale.

Leveraged gambling on the markets doesn't create wealth, it erodes the value of existing capital by transferring some of that value to the gambler. Deleveraging simply establishes the real value of assets. The problem is, it lets us know exactly how much value the gamblers have siphoned away.

Without leveraged trading p/e ratios would sit between 10 and 15.

Regulation will not drive banking away from the UK. The banks did that themselves by defrauding each other and their best customers, the world's pension and sovereign wealth funds. Once bitten twice shy.

It's not just the Banks and Parliament. Fraud and Corruption have spread all over our country. From social housing allocation, to visa's and passports, via business regulations that maintains vested interests, a +million fraudulent mortgages not even investigated.

Our press can pretend it's isn't happening. But don't think the rich and powerful looking for a site for a factory or financial services haven't noticed. We are in so much more trouble than is realised.
Shouldn't banks work for us? 1:32pm on 01 Dec 2009 writingsonthewall well said.

People are saving and scared. They aren't going to start consuming for years. The word from govt is cutting back public spending by £100 billion a year. Thats 5 million jobs at 20k pa gone, and thats without the economic follow through.

So why is the market up since March. Traders cite China. But all I can see is a Maoist 5 year plan building factories and foundries when already vastly oversupplied. This is a policy founded on hope, which itself is driven by fear of rebellion from a government with a victim mentality.

Here is the best investment advice you'll ever get.
Accept that all your money and assets belong to your family not you. Have more kids. Send the children to private schools. Sell your home, pass the money on to your children and move in with them or get your parents to do the same with you. Open a family business, apprentice your kids and pass power to them when they get to their 30s. Never let a child stay unemployed. Call in every favour, beg if you have to, walk those streets and get that child a job. Leave none behind.

This is all unfashionable so look at it another way. What pension fund guarantees to house you, feed you, nurse you, value your advice, and pass on all you've saved to your children. None. There isn't an investment in the world that can compete with your family. Not even Buffett.

So there you have it. That's where we're heading. Large family homes and big extensions on existing homes, retired parents living with their children, many more family business' and many of them being home based, more children, more private schooling, a lot less borrowing particularly mortgages.

And with this will come a more callous approach to the feckless, to single mums and to offenders. Because it's easy to give ones own money to the foolish, but not ones family money.
British banks and Dubai 3:33pm on 29 Nov 2009 Hi Robert. Good to read you.

There is a lot of talk about cutting the UK deficit. £100 billion a year is mentioned. This figure is the equivalent to 5 million people earning £20,000 a year losing their jobs.

There is an expectation that growth will fill this gap. That concerns me for several reasons:
-Without the consumption fueled by equity withdrawal, US GDP since 2002 has been about 1.5% pa. For the UK the figure is even lower.
-UK financial services ripped off their biggest customers for $ trillions. Do we really expect them to come back when we have failed to root out and legislate against the fraudulent business practices and the fraudsters who practiced them.
-we have 2 natural resources with more than 10 years life in them, wind/wave and coal.
-A huge building program (ie the 30s) to soak up unemployment will lower house prices and in turn lead to further mortgage defaults that we taxpayers have to cover through the govt guarantees to the banks. So we can't do this. That means even more unemployment and more adults living with their parents, not having children.
-The web and global economy are presented as if its all about competing on wages. Thats rubbish. What is really measured is a nations legal, physical and tax infrastructure. For example. The NHS is outsourcing it's typing to freelance typists in New Zealand, Australia and Canada. Not because UK freelance typists are more expensive per line, it's due to UK Employment Agency law which adds huge admin costs and outlaws the business model being used by our competitors. The govt's stated rational for our legislation is the need to protect star struck girls from being conned by bogus talent agencies.

The last point is the one that really worries me. We have a very serious problem with unemployment and it's about to get much worse. But the UK govt continues to favour off shore providers by outlawing the same business models in the UK. Various political and business lobby groups, together with an outdated understanding of economics and business models, are dominating policy and legislation, to the detriment of the UK economy and our people.

Adopting the business models allowed in Australia, New Zealand and Canada would create upward of 4 million full time jobs in the UK within 5 years. Thats all our current unemployed and most on incapacity benefit. Currently these are costing us over £100 billion a year in benefits.
Why them and not us? 02:48am on 24 Oct 2009 48% of mortgages in the UK were self cert in 2007. Yet less than 10% of the population are self-employed.
Thats an awful lot of people lying about their income on historically high multiples.
No wonder UK banks are marking mortgages and their derivatives to 'fair value' rather than to market.

The BoE can't raise rates without causing rising mortgage defaults invoking govt guarantees etc.

Admittedly a £ carry trade would remove some of the 175 billion QE, but we aren't a manufacturing giant like Japan. It takes decades to build up the manufacturers and infrastructure to make that work.

I'm afraid the Tories are right. Public spending has to be cut massively and the costs our employment legislation puts on job creation removed. We really have no choice. We'll all have to be self employed soon.
Moving in the right direction 1:36pm on 20 Oct 2009 I have 2 business', one on a self employed basis, the other a Limited Company.
I completely agree with stopping self cert mortgages. However I see no reason I should be suffer for the fraudulent activity of those who were PAYE yet getting self cert mortgages.
Does this mean I have to buy a home without a mortgage or will the FSA get back in to the real world and use our tax returns to verify income. After all if it's good enough for the tax man, it should be good enough for the FSA.
And as for those who argue that self-employed income is under-represented for tax purposes, pay your fair share of taxes or suffer the consequencies.
Lloyds: compensating taxpayers 11:46pm on 09 Oct 2009 Inflation is upon us.
Average house prices have risen for 3 months despite being 6-7 x average income. QE has led to shares inflating 50% in 6 months on nothing but sackings and factory closures. The post office workers are striking despite their cause being over a year away and negotiations ongoing. Railway staff are heading this way too. Infrastructure vital to our economy is not being built.

Yet QE and low interest rates continue.

So the real question is, will this inflation go hyper.

For hyper inflation to emerge 3 conditions are required.
1/ A govt printing money to meet it's everyday expenses and unable to finance itself otherwise for the foreseeable future. (tick)
2/ A lack of social mobility. (tick)
3/ A narrative attributing the cause of an economic disaster for the majority population to the corrupt enrichment of a national elite, dominates popular economic and political analysis. (tick)

they can be summarised as, the govt is broke, I can't help my kids, the rich have stolen all our money. The result is, I'm getting some back, STRIKE.
Lloyds: compensating taxpayers 8:15pm on 09 Oct 2009 Now for a change of subject.
For some time I've been considering the inflation/deflation debate.
BAE: Can't pay, would like to pay 3:44pm on 01 Oct 2009 The 'rule of law is not a luxury to be deemed superfluous when weighed against several thousand jobs. It is the bedrock upon which every contract stands.

The other party to these BAE contracts was a national government, not the politicians and civil servants taking bribes. BAE executives knew this. The next question is, are the contracts now void. Potentially BAE could find itself having to pay back the full price to the buyer and take back the goods in whatever condition they now are.

We should be very worried. Our largest manufacturer is dependent on bribery and corruption. Finance, our largest industry, has been bankrupted by it's own greed inspired fraudulent products. A widespread culture of defrauding the public purse has been uncovered in parliament. Our government is printing money to cover it's everday expenses while our competitors build real infrastructure.

We are in very serious trouble. We are a service economy. If our customers can't trust us, they will go elsewhere.
Brown and markets 1:57pm on 30 Sep 2009 It is not the markets that failed, it is the criminal justice system, which despite the pretense of separation, is a creature of government.

Nu Labour has abandoned the "rule of law" and the result has been turning a regular recession in to the UK credit crisis. This abandonment continues.

To repeat:
- deliberate lying about income on a mortgage application is fraud.
- bank staff processing such an application suspecting the income quoted may not be true is aiding and abetting the fraud.
- bank executives bundling what they referred to as 'liar loans' in to securities and selling them as AAA rated was fraud.
- MPs claiming expenses that did not further their function as an MP was fraud.
- 1/3 of the cream of the metropolitan police claiming personal expenditure as work expenses was fraud.
- the attorney general failing to abide by law she took part in drafting is very suspicious. Whether she was just incompetent or criminal is a question for the criminal courts not a civil servant.

A govt which follows policies that knowingly push 100s of thousands of citizens to commit very serious fraud, to get a home, is a corrupting government.
A government that fails to prosecute people and offenses because it would cause that govt embarrassment is a corrupt government.

We pay for the BBC. It's purpose is to inform. The BBC is continuing to ignore the nu-labour government's abandonment of the 'rule of law'. The reason is the spread of people who committed mortgage fraud, in london most people have a friend or family member they suspect of doing this. I've no doubt it's the same in the BBC.
But that is immaterial. Serious crimes have been committed and the result is 10s of millions unemployed around the world, $ trillions lost, 100s of bankrupt banks, bankrupt countries, pensions diminished, good business' starved to death. And people are and will die because of this.

The BBC is happy to see 100s of thousands of license payers get away with mortgage fraud. What next, a BBC campaign to legalise lesser crimes like street robbery, burglary, shoplifting, cheque book and credit card fraud, drug dealing. Where does it stop.
Should students pay our bills? 11:43pm on 21 Sep 2009 At last we are getting to the core of what has gone wrong in UK economy and society.

A high tax welfare state (including good pensions) and high family home prices cannot exist together. As a pair they are unaffordable.

Across society, those whose agreement was needed to create a high house price economy, all voted and influenced for their own enrichment while watching their grandchildren and those of their secretaries, being put in to creches at a few months old. Be they newsnight editors, senior bankers or our friend's parents, greed consumed them and still does. We owe them nothing.

In the coming years, whatever the mechanism, wages will grow relative to house prices and savings. The generation who exploited their own children, dependant on savings and house prices, will be on the recieving end of the values their own actions created in their children.

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