Archive for the ‘The effect of low interest rates’ Category

just wondered if any of this sounded familiar? #London #BOE #houseprices #inflation

February 26, 2014 Leave a comment

So here we are again, the Bank of England isn’t worried by the rise in house prices, the FTSE is at a 14 year high, Taylor Wimpey are about to become part of the elite FTSE 100 index and this 5 bed flat will cost you £45,000 a MONTH to rent.

No need for a rise in interest rates then?


HM Revenue & Customs: Tackling tax avoidance: Spotlights #QE #BOE #HMRC #tax #taxpayer #saver #pension #hypocrisy

September 9, 2013 Leave a comment

HM Revenue and Customs seen from Parliament Sq...

HM Revenue & Customs: Tackling tax avoidance: Spotlights.

Interesting article from HMRC on tax avoidance.

Go towards the bottom of the page…

Further information, tax planning to be wary of:

Tax planning to be wary of

  • It sounds too good to be true.
  • Artificial or contrived arrangements are involved.
  • It seems very complex given what you want to do.
  • There are guaranteed returns with apparently no risk.
  • There are secrecy or confidentiality agreements.
  • Upfront fees are payable or the arrangement is on a no win/no fee basis.
  • The scheme is said to be vetted by a top lawyer or accountant but no details of their opinion are provided.
  • The scheme is said to be approved by HMRC (it does not follow that this is true).
  • Taxation of income is delayed or tax deductions accelerated.
  • Tax benefits are disproportionate to the commercial activity.
  • Offshore companies or trusts are involved for no sound commercial reason.
  • The involvement of professional trustees is claimed to guarantee that the arrangements succeed.
  • A tax haven or banking secrecy country is involved without any sound commercial reason.
  • Tax exempt entities, such as pension funds, are involved inappropriately.
  • It contains exit arrangements designed to sidestep tax consequences.
  • It involves money going in a circle back to where it started.
  • Low risk loans to be paid off by future earnings are involved.
  • The scheme promoter lends the funding needed.
  • There is a requirement to take out insurance against the failure of the tax planning to deliver the tax benefits.

is it just me, or do some of these sound like the definition of QE?

Common sense?

Carney Cripples Savers for Years With Rates Pledge: U.K. – Bloomberg #savers #pension

September 9, 2013 Leave a comment

cropped-tomb-commonsense.jpgCarney Cripples Savers for Years With Rates Pledge: U.K. – Bloomberg.

Seems a bit harsh to kick Mr Carney in the ‘painfuls’ when his predecessor Mr King failed to even spot the financial crisis. Either way neither will go hungry.

Common sense and fairness, not really!

Legal & General, just wondering how this works? #pension #saver #savers #prudence #savings

August 7, 2013 Leave a comment

no wonder the younger generation don't bother saving!

no wonder the younger generation don’t bother saving!

Despite announcing a profit after tax up 15% to £464m yesterday, I was shocked to receive my pension statement this morning showing the following.

According to my statement my fund value has increased by 17% over the past 6 months. Not bad at all to be honest. So why has my projected pension  actually decreased in value?

Something not right here surely?

Common sense, don’t save, just spend spend spend!

Where have all the carbon credit cold callers gone? #unregulated #scam #pension #economy

English: Pencil

English: Pencil (Photo credit: Wikipedia)

TONY HETHERINGTON: Carbon credits pitch is rife with false claims | This is Money.

To be fair to the FCA, this is and was an unregulated business, so progress at your own peril was definitely the shout.

As with any cold caller promising huge returns, one should always proceed with caution. If you still feel the urge to go for it, don’t put all your eggs in one basket.

Unfortunately due to the low level of interest rates, pensioners may feel the urge to take bigger risks to generate an income, much more so than if they were receiving a nice return from the hard earned nest egg at their local building society or bank. Unfortunately those days seem to have long gone and as people become more desperate the ‘fraud’ and ‘scam’ industry will remain on an upward growth trend (unlike the economy).

As with any investment apply Common sense and at all costs AVOID desperation.

Payday Loans Firms Face Competition Inquiry #RBS #Lloyds #Cable #loanshark

English: Cash Advance, Payday Advance Store Ou...

English: Cash Advance, Payday Advance Store Outlet in Toronto downtown. (Photo credit: Wikipedia)

Payday Loans Firms Face Competition Inquiry.

Well this is a refreshing start.

But I could save everyone a lot of time and money by letting you know that if our high street banks started to support ‘individuals’ in their time of need by lending money at sensible rates, the payday industry would simply disappear.

After all it’s not rocket science, just common sense.

Another long, long, long summer ahead #austerity #Merkel #Greece #Spain #Italy

Christmas in the post-War United States

Christmas in the post-War United States (Photo credit: Wikipedia)

So what’s changed since my original article in May 2012?

Not a lot really, other than Italy is about to explode with reportedly huge derivative losses approaching expiry. Hotly denied by the Italian government of course.

There is only one answer of course to the global mess, which is the good bank, bad bank theory……leave all the rubbish to your great great great grandchildren, stick interest rates up, lob Basel III in the bin, start lending again and get on with it.

Unfortunately there are no major global sporting events to look forward to this summer…

Oh well, it’s nearly Christmas…

Common sense, just common sense.