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When Will This Credit Crisis Ease?

They talk about the green shoots of recovery; well I have not seen any, have you? I personally think that it is a form of increase confidence trick; an attempt to make people believe that the worst of this current recession is over.

They, and when I say they I am talking about the Government and business leaders, are no doubt hoping that this new confidence (false as it undoubtedly is) will spur people on to start spending money again; to start buying houses etc. In reality the only way this credit crunch will ease is when the banks start to lend money again, at reasonable interest rates. Already we hear stories of the bankers going back to their bonus culture, will they never learn? In a way a more important question is why is our Government allowing them to get away with it? What our great country needs is a strong hand at the top, a person who can be a “real leader”.

Now I am not some financial whizz kid who thinks he has all of the answers. I am in fact just an average working class guy from the UK who runs a web promotion company and who also has a partnership in a company that offers a professional DVD duplication service. I do however watch and listen in amazement at times when I see what some of the politicians and greedy bankers say – they really are not in the real world – they probably would have absolutely no idea as to the average cost of a pint of milk or loaf of broad – they are complete jokers and a waste of space.

I personally believe that this current credit crisis will last until the end of 2010, at least. I know that this seem rather negative but it is just my opinion on the situation. With a stronger leadership this would no doubt change but while the Labour cronies continue to bicker and squabble what chance have we got? Bring in Vince Cable I say as the new Labour leader!

The main stock markets from around the world have had quite a good start to the year. I have to say that this, in my opinion, is quite a surprise as the overall economy is still in dire straits – it was only a couple of months ago that General Motors went into administration for example. I am asked on a regular basis whether I think that the stock markets will continue to rise in the second half of 2009.

Now I have to say that I am more than happy that the main stock markets from around the world have been performing so well. I love to invest on the markets, or gamble as my family like to call it.

I should mention however at this stage that I am not a financial adviser and that I am merely a novice investor who is hoping that the “gamble” will pay off. Please therefore do not take any of what you read in this article as financial advice as I am not authorised to give advice etc. I actually work on various projects including offering a DVD duplication service, offering stuttering therapy and also assisting a business cost reduction specialist.

Investors are hoping to see some green sheets of recovery and are eager to enter the market at the right time; or at “the bottom” as they call it. I have to say that I have not seen any green shoots thus far!

Over the last few months we have seen some dramatic gains on more of a hope that the recovery has started. So just how will the markets react when it sees some “real evidence” that the credit crunch is starting to ease? Well I would very much expect them to rally in a major way. With interest rates at historical lows people are seeking an investment which offers a much greater return than the measly three percent offered on the high street.

I personally believe that there are going to be some rocky roads ahead but that the bottom of the market may have been reached.

When will this recession be over?

They talk about the green shoots of recovery; well I have not seen any, have you? I personally think that it is a form of increase confidence trick; an attempt to make people believe that the worst of this current recession is over.

They, and when I say they I am talking about the Government and business leaders, are no doubt hoping that this new confidence (false as it undoubtedly is) will spur people on to start spending money again; to start buying houses etc. In reality the only way this credit crunch will ease is when the banks start to lend money again, at reasonable interest rates. I am already started to read reports about the ways in which these bankers have returned to their greedy bonus culture? In a way a more important question is why is our Government allowing them to get away with it? There is a real lack of leadership at the moment and it is about time somebody at the top started to crack the whip.

Now I am not some financial whizz kid who thinks he has all of the answers. I am in fact just an average working class guy from the UK who runs a web promotion company and who also has a partnership in a company that offers a professional DVD duplication service. I do however watch and listen in amazement at times when I see what some of the politicians and greedy bankers say – they really are not in the real world – they probably would have absolutely no idea as to the average cost of a pint of milk or loaf of broad – they are complete jokers and a waste of space.

I personally believe that this current credit crisis will last until the end of 2010, at least. I know that this seem rather negative but it is just my opinion on the situation. I may well revise my opinion if we were to change in Government or a new stronger, dynamic leader? Bring in Vince Cable I say as the new Labour leader!

It’s one of the indicators of a ‘proper’ recession when the general public starts to rethink strongly held views on what they once ‘couldn’t live without’. Research conduced by Pew Research Center of a large number of US residents asked what household appliances and everyday items were being considered a lower priority as a result of the credit crunch. They asked the question “which of these are pretty much a necessity and which are pretty much a luxury you could live without?” regarding a number of household appliances and gadgets. The list ranged from cars to air conditioners to microwaves to cell phones.The results, perhaps shocking to some, show how more and more of us are becoming increasingly frugal with our purchasing decisions on ‘big ticket’ household appliances and electronics.  Owning a microwave became a luxury for 21 percent of people compared with 2006. Having a home or portable air conditioner stopped becoming a luxury for 16 percent of people asked compared to a few years ago. And perhaps most surprisingly of all, owning a TV set dropped 12 percentage points in the public’s estimation of what constitutes a must-have item.  It was technological gizmos such as cellphones, high speed internet connections and flat screen TVs that were the ones not to take a hit in the rankings, suggesting that these have become the new necessities of our time.

To be honest many of the results don’t surprise me all that much.You only have to ask around to friends and family to see that frugality is becoming key as we live in fear of rising prices, reduncancies and difficulties in obtaining credit. It seems like most people’s attitude is “only buy what you absolutely need”. Having a ceiling fan instead of air conditioning during the hot summer we have coming ahead. Sticking with the bedroom furniture or fridge freezer you’ve been promising to replace for one more year. Not driving your car as much to cut back on fuel costs and mechanic bills. In my opinion these kinds of things aren’t going to make a big difference to our overall quality of life. The worry playing on my and many other people’s minds, however, is that things will get a lot worse, and it won’t be something we can budget our way out of.  Maybe at that point people will start to think about all the billions we pay in taxes that gets spent on war, bank buyouts and corporate kickbacks, and start to demand some real change in our society.

Maybe it’s all the doom and gloom of the financial and metrological climate here in the UK. But more people are looking at buying a second home that they can use for credit-crunched domestic holidays and to generate some additional revenue for the other 11 months of the year. Others still have chosen to leave the UK altogether and find that piece of heaven they have been looking for by moving abroad.

Whatever the reason and whatever age group you may be, you can escape the cold winds of recession and the weather by following this route, but you still need to look at protecting your investment, whether at home or abroad. Finding a company that will give cost effective cover for second home insurance and overseas property insurance isn’t as easy and can often be more costly than you might imagine.

Deciding on insurance for your second home is no walk in the park, it can become very difficult and tiring. This is because insurance companies know that second homes are generally left unoccupied for lengthy periods of time, because of this, the home can face weather damage like burst pipes. Even if you are able to overcome those problems, it can still become stressful when the property is damaged by the current occupiers.

If you do obtain cover you will probably find that most holiday home or buy to let insurance policies have restrictions in the small print. Because of this, you can get a shock when you find out your insurance is not valid when you make a claim as you haven’t correctly crossed every T and dotted every I. There are some providers who understand that most holiday home and second home owners only use their property occasionally.  

Because of this reason, there are some policies available that won’t end up leaving you with no water or electricity as they have no restrictions or exclusions in the small print. If you choose to let out your new second property, with those same policies, you can get some extra advantages such as £5m public liability insurance and contents protection.

The credit crunch is in full swing and companies are dropping left right and centre. Although the gambling industry is not suffering as bad as the banks and retail outlets it is only a matter of time until the economic downturn catches up with them. So lets take a quick glance at why the gambling industry will end up suffering in the long run.

1) Loss of income - People are losing their jobs all over the place so they are looking to save themselves money
2) Afraid of Risk - Most gambling addicts are not too afraid of losing cash, as they know at the end of the month they will be paid. But once again due to being scared of losing their work, they are trying to stay away from casinos.
3) Jackpots will not be as big – You know that if you are playing Bingo, online poker or roulette that you are playing to win a huge jackpot. Because a lot less people will be playing, it means less deposits and smaller jackpots.

So it just goes to show that in the long run no industry is safe from the credit crunch. There may be companies struggling now when they have felt the first wave of the economic downturn, but I believe more businesses will fall when the second wave finally hits.
So if you are gambling only gamble if you are confident of coming away either level or making a profit, if you do not have a clue about how to gamble then read books or go on courses as you do not want to end up losing a fortune during these difficult times.

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The average credit card holder in Britain is now in over £2000 of debt. We spent years buying what we wanted when we wanted it but it’s clear from the recent slump in retail sales that the time has come to tighten our purse strings and rein in our spending. Here are a few tips on how to ride out the recession by saving your money and making the most of what you already have.

Mortgage: For many people, their mortgage is their most expensive outgoing. Your home is the most important thing you own, and certainly something that it is worth taking out a loan for. But that doesn’t mean it’s an unavoidable burden we all have to put up with. Shop around and make sure your deal really is the best one for you. There are thousands of alternatives out there, you just have to be sure you’re getting the most out of what’s available. Overpayments are not a bad thing – if you find yourself with a bit of extra cash to spare one month, don’t keep it aside to fritter away on things you don’t need, make extra payments whenever you can and you could save thousands on interest in the long term.

Credit cards: Resist. Don’t spend money you don’t have, if you can’t afford to pay it off that month, just don’t buy it. Try to pay off any debt you owe as quickly as possible (don’t just pay the minimum each month if you can afford more) and if you don’t think you can resist spending more on your cards again, cut them up. Just don’t go beyond your means.

Car: Owning a car can be a very expensive business. It’s not just the cost of the car itself, but also road tax, maintenance, insurance, servicing, MOT… And the list goes on. Think carefully about whether or not you really need a car. If you can’t live without one it might be worth considering a car contract hire agreement instead of buying one outright. You pay for the car in manageable monthly instalments and often you can get other additional extras like road tax or servicing costs thrown in as well. You just have to search for the best deal. And the best thing is that often the more desirable car you choose with contract hire the better deals you can get – you could find yourself with a car you would never have been able to afford to buy outright, even in better times!

Sell sell sell!: If you have clutter and unused items around your house, don’t just turn a blind eye to them or dump them off at your local charity shop. If you’ve got drawers full of clothes you don’t wear or gadgets you thought would be useful but never used, there is someone out there who will want them. Ebay is a wonderful thing, it’s quick and easy and once you get a bit of practise at how to advertise on there you could find yourself making a nice little extra bit of cash out of your old junk. Give it a go, or you’ll never know until you try!

If your business is one of the hundreds that are struggling in the recession, you’d probably never consider spending money employing people to sort out your website for you. You might think that in the current economic climate there are surely much more pressing things to be spending your cash on – you need to keep your business afloat and it’s tough enough to keep going, let alone expanding online as well. It may be a logical thought but in fact ignoring the potential of the online market completely is probably one of the worst decisions you could make right now. In fact, almost all the businesses that are still thriving in spite of the recession are succeeding because they have a strong online presence, and are finding new customers through Google. Remember, times may be hard for businesses but things are also tough for consumers, and more and more people are turning to the internet rather than the high street for the best deals on all kinds of products.

It can be difficult to get your head around the minefield that is Google and internet marketing, but with the right approach and a bit of expert SEO, anyone can improve their site and see a huge improvement in the number of people visiting, using and buying their products. With so many websites offering competitive discounts and deals on all types of product online, it’s the ones who fail to take advantage of the internet who will suffer most. Think about it, of the huge brands that have gone into administration over the last few months – Woolworths, Zavvi, MFI – all had limited online resources and nothing to offer compared to their main online competitors.

Internet Marketing and SEO is one area that has barely been hit by the recession. The ability to manipulate online resources and maximise a website’s potential is more in demand than ever and even in the job market there are still plenty of vacancies for SEO training and internet marketing. Clearly more people are beginning to see that it could possibly be the only way to beat the credit crunch and stay ahead.

So you want to look for a new car but just can’t seem to make your finances stretch far enough? Or perhaps you’ve already seen the car of your dreams, but know there’s no way you could even consider buying it. You’re not alone – the auto industry has been hit hardest of all by the recession and sales have reached an all time low. It seems no one can afford to think about purchasing a new car right now.

But don’t let that get you down – there is still another option. There is another way you could still get the car of your choice, without even having to pay upfront for it. Car contract hire or leasing agreements are a great way to choose the exact car you want and you only have to pay one manageable monthly fee.  

I know what you’re probably thinking, there has got to be a catch, right? Well, actually, no there really isn’t. Sure you have to sign a contract but you get a choice of any car you want, even those that would normally be out of your price range. In fact, the more popular and desirable the car is, the better deals you can usually get. It’s not like buying a new car where the value decreases with time, most contract hire agreements are based on your projected usage so they take wear and tear into account and when the contract ends you can trade it in for a newer model.

Choosing contract hire will usually also help with the running cost of having a car – often the road tax and servicing costs are thrown in to the monthly instalments so you won’t find yourself suddenly landed with huge repair bills. And it’s less likely to break down as you can trade it in every few years, so you’ll always have the latest new model.

Basically, it’s a great way of getting a new car without any of the worries of buying outright – and it really does make sense, especially now when times are hard. And who knows, you might even get your dream car after all!

How much is a kitchen worth to you? £5000?, £10,000?, £25,000? perhaps £100,000?

A kitchen costing that amount of money is still going to be bought. Why are people willing to spend over £100,000 on great big designer kitchens?They are the big cats, of course they are able to invest in such big, expensive kitchens. There are still people that don’t need to save their money so can afford these investments. They still earn all their money so why would it? The press make most of the news about the credit crunch up to scare peopple anyway. The credit crunch hasn’t changed a thing. Although taking some small setbacks the upper classes still aren’t really recognising the full reality of the credit crunch. The big cats so to speak only have to suffer slight cutbacks in their wages when the middle class suffer job losses and severe cutbacks such as not being able to keep their kitchen stocked with food let alone even think about buying a new kitchen especially for over £100,000.

If i had the money for a £100,000 kitchen I would have one myself. There are a few of them that really do look spectactualr. Although a lot of money you can see why people are willing to spend so much on these kitchens! Without a market for the upper classes the world would be in an even worse state than it is. there needs to be a market for the upper class, without a doubt. They do cost a lot and yes it does sound like a rip off but isn’t everything overpriced nowdays, the quality is amazing.

A kitchen no matter how good it looks should not cost £100,000 to me. To me £100,000 for a kitchen is way too much, but to be fair I wouldn’t spend any money on a kitchen at the moment. Once again I will say that there are a few kitchen’s that look really worth the money. Why buy an expensive kitchen that you won’t use. To impress their neighbours. The upper class are all like that. the best kitchens are the better with the wealthy in the world.

Still to all those who can afford the bespoke kitchens, why the hell not!?