Wednesday, 3 August 2011
Northern Rock Results today
Northern Rocks losses are a byproduct of tHe North East of England being dependant on Japanese firms since teh 1980s. Given recent events in Japan the reduction in teh supply of parts for their factories here and resultant job losses on top of reductions in the economy is to be expected. Previous reports on Northern Rock showed that it had since state ownership stopped its 125% mortgages and reinstated responsible lending based on the review of financial services and teh reform of the tripartite system.
Tuesday, 2 August 2011
Syria
The Syrian government has started to use tanks against its population in the city of Hama. This has been condemned by the UK government. There is a mediated peace process through teh medditteranean Union and teh Arab League and as such the violence should cease. Turkey has provided peaceful mediation in the past as Israel and SYria are in a cold peace and after Lebanon and Gaza withdrawals, a solely Israeli intervention could jeopardise its peace agreements with other states and jeopardise a peace accord with Palestine as it seeks statehood at the UN in September.However any UN led military intervention has to be done after a UN resolution and Chapeter 7 resolution.
How to ensure that there are no panic situations with investment banks and multinational ones like HSBC
HSBC is a multinational bank with a registered HQ in one country but divisions based in other countries and legal jurisdictrions and tax locations like many others. Since the G20 banks such as these are required to hold more cash reserves and investments and lend slightly less and not mortgages at above a certain amount of a persons income.
An example of a bank which didn't do that is Northern Rock wihich didn't do that with 125% mortgages and paid the consequences needing state bailout debt restructuring and loss adjustment (allowing its customers to default with debt advice and support) so that now its shares can be sold off again on the UK states stock exchange should the government be so minded.
However Northern Rock was a mainly one jurisdiction bank and not a multinational one like JP Morgan, Barclays or HSBC. What happens now for banks such as these affected by the East Africa droughts or Australasian Earthquakes, how does the international community ensure that aid and reconstruction continues and is stabilised.
While The previous UK governments tripartite regulation system failed to prevent the last recession it did mitifgate it unlike previous ones where credit spivs and doorsteo lenders exacerbated the microeconomic pain within a jurisdiction. that is because the FSa amalgamated self created and self regulated bodies which were accountable to parliament and the treasury but could not be coordinated under the economic regulations of the day. The FSA is funded by a percentage of share dividends and profits from all those who it regulates so if the World Bank could have a similar body within and offerring full disclosure to it of the danger zones without delay as occurred in the UK prior to Northern Rocks collapse (which created ongoing lending and the long boom 1992-2007). Then it could liase with the UN and teh G20 to produce combined sovereign debt restructuring, longer repayment periods for those that can (such as Sundays compromise for the USA and states of similar economic size such as Russia, India and China) and write off for those that can't (such as agreed at Gleneagles by the G8 in 2005 and followed through with with the G20 in London prior to the last general election) and find ways of reducing teh risks to the investment banks and those who are really 'casinos' to quote the Business secretary Vince Cable by restructuring repayments in a similar way that the futures market did after the Oil leak in the Gulf of Mexico. This is especially important if there are more earthquakes or reductions in states GDPs owing to unpredictable transport delays between states (such as Volcanic ash clouds and aviation) as
If that is done then corporations who have the investments of places such as Middle America and Metroland and Germany would be as protected as hard working families who have invested in them are being done now with the speration of retail and investment banking that is already underway. Then the Euro could be sustained with perhaps a period with Greece having its own currency if needed which in turn could allow the pound sterling to survive and sustain the economy peacefully. This is important so that the UK constitution is reformed such as the election of second chamber, codification of the constitution and the resolution of the West Lothian question with an English Parliament and regional cttes based on regional stv voting system for England within the Second Chamber. Within that context there is also the resolution of the status of Scotland following the democratic mandate the secessionist SNP achieved.
They could then in turn aid regional economic recovery in Northern England, Scotland and South Wales with better Transport links sustainably funded through Investment banks investing in Government bonds for projects such as rail both conventional and highspeed. The UK has several projects such as these in the development pool and one of these is Croxley Rail Link where the devolved transport authority for the neighbouring region and county has with it and district / borough / unitary council support and engineering advice by the Federal Rail agency (Network Rail) delivered a submission and public consultation. This one could be a case study for bond issues as the WEstminster MP for Watford has advocated the retention of the land that was to be sold off to fund it for overnight train storage (also post recession its land value may have gone down).
In short as the FTSE opens today there is no need to panic. It is also the case that now Wales has primary law making powers its regional financial regulation should be turned into national status to fund its transport improvements as mandated by the Welsh Sennedd.
Globally World Bank regulation of investment and multinational banks and credit institutions could be funded as the same way as the UK FSA has been with an insurance fund / capital reserves for their restructuring and default in the event of natural disasters such as in east Africa and to ensure that crudely put without waiting for UN accounts to be signed off, aid can get to the poor by trained and aided aid workers and medics. The status of Un financial management is the next potential problem.
An example of a bank which didn't do that is Northern Rock wihich didn't do that with 125% mortgages and paid the consequences needing state bailout debt restructuring and loss adjustment (allowing its customers to default with debt advice and support) so that now its shares can be sold off again on the UK states stock exchange should the government be so minded.
However Northern Rock was a mainly one jurisdiction bank and not a multinational one like JP Morgan, Barclays or HSBC. What happens now for banks such as these affected by the East Africa droughts or Australasian Earthquakes, how does the international community ensure that aid and reconstruction continues and is stabilised.
While The previous UK governments tripartite regulation system failed to prevent the last recession it did mitifgate it unlike previous ones where credit spivs and doorsteo lenders exacerbated the microeconomic pain within a jurisdiction. that is because the FSa amalgamated self created and self regulated bodies which were accountable to parliament and the treasury but could not be coordinated under the economic regulations of the day. The FSA is funded by a percentage of share dividends and profits from all those who it regulates so if the World Bank could have a similar body within and offerring full disclosure to it of the danger zones without delay as occurred in the UK prior to Northern Rocks collapse (which created ongoing lending and the long boom 1992-2007). Then it could liase with the UN and teh G20 to produce combined sovereign debt restructuring, longer repayment periods for those that can (such as Sundays compromise for the USA and states of similar economic size such as Russia, India and China) and write off for those that can't (such as agreed at Gleneagles by the G8 in 2005 and followed through with with the G20 in London prior to the last general election) and find ways of reducing teh risks to the investment banks and those who are really 'casinos' to quote the Business secretary Vince Cable by restructuring repayments in a similar way that the futures market did after the Oil leak in the Gulf of Mexico. This is especially important if there are more earthquakes or reductions in states GDPs owing to unpredictable transport delays between states (such as Volcanic ash clouds and aviation) as
If that is done then corporations who have the investments of places such as Middle America and Metroland and Germany would be as protected as hard working families who have invested in them are being done now with the speration of retail and investment banking that is already underway. Then the Euro could be sustained with perhaps a period with Greece having its own currency if needed which in turn could allow the pound sterling to survive and sustain the economy peacefully. This is important so that the UK constitution is reformed such as the election of second chamber, codification of the constitution and the resolution of the West Lothian question with an English Parliament and regional cttes based on regional stv voting system for England within the Second Chamber. Within that context there is also the resolution of the status of Scotland following the democratic mandate the secessionist SNP achieved.
They could then in turn aid regional economic recovery in Northern England, Scotland and South Wales with better Transport links sustainably funded through Investment banks investing in Government bonds for projects such as rail both conventional and highspeed. The UK has several projects such as these in the development pool and one of these is Croxley Rail Link where the devolved transport authority for the neighbouring region and county has with it and district / borough / unitary council support and engineering advice by the Federal Rail agency (Network Rail) delivered a submission and public consultation. This one could be a case study for bond issues as the WEstminster MP for Watford has advocated the retention of the land that was to be sold off to fund it for overnight train storage (also post recession its land value may have gone down).
In short as the FTSE opens today there is no need to panic. It is also the case that now Wales has primary law making powers its regional financial regulation should be turned into national status to fund its transport improvements as mandated by the Welsh Sennedd.
Globally World Bank regulation of investment and multinational banks and credit institutions could be funded as the same way as the UK FSA has been with an insurance fund / capital reserves for their restructuring and default in the event of natural disasters such as in east Africa and to ensure that crudely put without waiting for UN accounts to be signed off, aid can get to the poor by trained and aided aid workers and medics. The status of Un financial management is the next potential problem.
Monday, 1 August 2011
HSBC job losses
HSBC has announced that it is to cut 25,000 jobs. It is not a panic situation for teh global economy as this bank is one which has teh greatest number of countries in which it operates. It has so far managed to avoid UK government taxpayer support.
With the US government agreeing debt restructuring over ten years of an amount that it will borrow by raising its debt ceiling of its government borrowing by that amount. At the time of state intervention in the banking sector by buying shares previously, the offer of state support was made to HSBC and other banks.
The question to ask is if to maintain cvilian infrastructure in rural locations in other countries is a global private sector institution allowed to use funds gained from one states jurisdiction to subsidise its operations in that state under ultra vires.
If not then HSBC has no option but to go to each nation state individually and make its own job losses in each global institution accordingly. The alternative is for the world bank to regulate multinational financial institutions as well as aid statesbut that might be democratically unpalatable in many countries.
With the US government agreeing debt restructuring over ten years of an amount that it will borrow by raising its debt ceiling of its government borrowing by that amount. At the time of state intervention in the banking sector by buying shares previously, the offer of state support was made to HSBC and other banks.
The question to ask is if to maintain cvilian infrastructure in rural locations in other countries is a global private sector institution allowed to use funds gained from one states jurisdiction to subsidise its operations in that state under ultra vires.
If not then HSBC has no option but to go to each nation state individually and make its own job losses in each global institution accordingly. The alternative is for the world bank to regulate multinational financial institutions as well as aid statesbut that might be democratically unpalatable in many countries.
Saturday, 9 July 2011
With South Sudan now gaining independence today with the issue of some territory now to be decided peacefully as part of a negotiated settlement by those actually living there, is that the best way for Israel and Palestine to ratify their borders by referendum after negotiation mediated by the quartet?
Tuesday, 14 June 2011
time to stop a middle east arms race, NOW
The US secretary of state Hilary Clinton has claimed that there is substantial links between Iran funding the Syrian regime. In order to prevent regional arms race in the middle east with nukes for Saudi and more for Israel, could this matter go to the United Nations? Otherwise other states elsewhere in the world might start spending their aid budgets in the same way and that would negate the relative peace and progress since the end of the cold war.
Friday, 3 June 2011
FSA leaflets
http://www.moneymadeclear.org.uk
http://www.moneyadviceservice.org.uk
Helpline: 0300 500 5000
Typetalk 1800 1 0300 500 5000
Part of the Consumer financial education body
Their leaflets on setting up bank accounts, mortgages, pensions and savings
I'll be retyping for this blog over the summer with their useful contacts as well.
They are not qualified advisors and don't make recommendations themselves and any advice you seek should be with a body regulated with the Financial Services Authority and Bank of England. Their leaflets contain explanations for financial words themselves.
Financial Services Authority (FSA)
Consumer Helpline: 0845 606 1234Minicom / textphone 0845 730 0104
www.fsa.gov.uk
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