Easy credit may teach hard economic lessons October 31, 2011 ONE thing about public opinion I fail to understand is this: people understand that easy credit was a cause of the financial crisis, so why are policies that make credit easier popular? George Osborne’s credit easing plans for small businesses are noble in that these firms are indeed the lifeblood of the economy. But it [...]
Cut in bad debt spurs profit at National Australia Bank October 26, 2011 THE PARENT company of Yorkshire and Clydesdale banks has increased second-half cash profit by 17 per cent as bad-debt charges fell and mortgages grew at more than three times the rate of the industry. National Australia Bank said this morning that profit was a record A$2.79bn (£1.82bn), despite doubts over the immediate health of the [...]
Barclays to offer 90pc mortgages October 26, 2011 BARCLAYS launched a new bid to entice prospective house-buyers back to the market yesterday by offering no-fee mortgages needing only a ten per cent deposit. The bank has refused to offer 90 per cent loan-to-value mortgages since 2008 when it pulled them during the financial crisis, but is now following rivals such as NatWest and [...]
US new homes sales see surprise increase October 26, 2011 Sales of new US homes have posted a surprise higher than expected rise in September, new data shows, but asking prices continued to fall as the market remains weak. Sales were up 5.7 per cent in September, to a seasonally adjusted 313,000-unit annual rate, as sales in the South logged their fastest pace since April [...]
Radical thinking on tax from the US October 25, 2011 WHILE the Eurozone moves ever closer to the brink, the US presidential elections have suddenly become more interesting. Two of the Republican candidates – former Godfather’s Pizza CEO Herman Cain and Texas governor Rick Perry – have kick-started a major debate on tax reform and economic growth. It all started with Cain’s fascinating 9-9-9 plan: [...]
Bank lending on mortgages is on the rise October 25, 2011 MORTGAGE lending rose over the twelve months to September, according to figures out yesterday from the British Bankers’ Association, though at a slowing rate. Growth of 1.6 per cent was recorded in net mortgage lending over the last year. Gross mortgage lending came in seven per cent higher in September than a year ago, at £8.4bn. [...]
Lending to businesses is still subdued, says Bank October 20, 2011 LENDING to businesses fell again in the three months to August, Bank of England figures showed yesterday. On an annualised basis, the stock of lending from financial institutions fell by 2.1 per cent, or £2.5bn. The decline represents a slowing rate – lending was down 5.8 per cent in the three months to July and [...]
Time to debunk the silly myths about personal credit ratings October 19, 2011 A BAD credit rating is the financial equivalent of a six-year hangover. We should fear them. They can stop you getting a mortgage, new car and leave your credit card trapped on a crippling interest rate. But a lot of what is said about them is rubbish. For example, 71 per cent of people still [...]
Inflation: an undemocratic stealth tax October 19, 2011 INFLATION is taxation without legislation, as Milton Friedman, the Nobel prize winning economist, once said. He was spot on. Yesterday’s figures were truly appalling: inflation on the retail price index measure hit 5.6 per cent, the fastest rate for 20 years. On the official consumer price index measure, it reached 5.2 per cent. Over the [...]
Inflation: an undemocratic stealth tax October 18, 2011 INFLATION is taxation without legislation, as Milton Friedman, the Nobel prize winning economist, once said. He was spot on. Yesterday’s figures were truly appalling: inflation on the retail price index measure hit 5.6 per cent, the fastest rate for 20 years. On the official consumer price index measure, it reached 5.2 per cent. Over the [...]