Cutting Debts
I was listening yesterday to the BBC’s morning phone-in and they were talking about debts and especially how people have got into trouble over Christmas.
If I look at my finances over the last year, they have improved somewhat and I felt that although I’m living on my savings until my house is sold, I’ve probably got almost a year more before my avings run out, than when I moved here in December 2010.
So what major savings have I made.
The first is the the television, phones and broadband. I like Sky Sports, and the big saving is that I can’t have an obvious dish here, as it’s a Conservation Area. Although, I could probably hide one on the roof! I did try Virgin by cable to get Sky Sports 1 and 2. Now I’ve switched to BT Vision with of course Freeview. I now pay about £50 a month to get phone calls, broadband and Sky Sports 1 and 2.
I don’t seem to miss out on watching anything I want to, but the saving is a thousand on Virgin Media and a couple of thousand compared to Sky.
Note that I only rarely watch films on television and generally stick to the four BBC channels, the two Sky Sports channels and radio.
The biggest saving is not having a car. I don’t miss it one bit, although perhaps it would have helped on Christmas Day to get to my son’s. But with the amount of money I save, I can afford the occasional black cab or mini-cab.
Getting rid of the car has other benefits too in addition to the obvious financial and logistical ones.
You walk a lot more, which is obviously good for you. I always walk with my eyes open too and I see things in shop windows that I might like to buy to improve my lifestyle or things that are just interesting in the street.
Walking is a real joy in a city and in no way inferior to walking in the country. In fact, I think it is more thought-provoking.
So how many people with serious debt problems have still got the expensive television, the full Sky and an expensive car?
France in a Fitch
The French have been blaming everybody except themselves for the pickle the Euro is in.
They have used their biggest guns against the UK. But they have also had a go at the rating agencies, saying that they are part of the Anglo-Saxon plot against the euro. This report on the BBC concerns the view of the rating agency Fitch on the euro.
But Fitch is a French-owned company. Even so, they give France a less than perfect rating.
I shall be watching what they say in the future.
This Should Never Happen Again
The case of Dr. Eva Michalak should never happen again. Reading the story in The Times and on the BBC, it seems that the doctor did nothing wrong in her work, except decide to have a baby. That seemed to arouse the ire and vindictiveness of her colleagues and quite rightly, she has got a settlement to compensate for the career they destroyed.
My main problem with this case, is that it would appear that none of her colleagues, have been disciplined in any way. That may not be the case, but as in so many cases like this secrecy may have been used to protect the guilty.
Every person, who runs a large company or organisation, has a duty to all their employees to make sure things like this don’t happen. It could also be argued that they must manage the organisation, so that no employee is pushed into a position, that will cost their company a lot of money. Is the Chief Executive still employed by the Trust? I hope not!
Wonga Moments All Over London
I don’t like Wonga and I don’t think I’m alone judging by the excellent press they are getting.
Now they are advertising on the sides of London buses.
I hope that this advertising has the wrong effect from the company’s point of view. It may put the company’s name in the minds of possible punters, but if they don’t need a loan yet, it will also attract them to articles in the media, which is probably a good thing, as I’ve yet to see one that is the least bit positive towards Wonga!
Slogans I’ve seen so far include :-
THIS IS OUR SMALL PRINT
Pay back early, pay less.
How much? How Long? You decide.
Straight talking money.
Need wonga now? Just add .com
All seem to me to be rather too subtle for their target market.
Bankers Get Their Just Desserts
I like this story in The Times about how Bob Diamond has fired some of the jerks in Barclays. Remember that Mr. Diamond has dual British-American nationality so he obviously knows the British equivalent of jerk. I wonder if he called them all a wunch of bankers as he gave them their P45s.
I particularly liked this bit.
Mr Diamond referred to an infamous episode in 2002, when six Barclays bankers celebrating their bonuses spent £44,000 at the London restaurant Petrus, as “the no jerk rule personified”.
“That was embarrassing,” he said. “It was taking advantage — we have a responsibility to our colleagues and to have acted that way in a public place was inexcusable.”
The bankers consumed a 1982 Montrachet costing £1,400 and three bottles of Petrus Pomerol, the 1945 at £11,600, the 1946 at £9,400, and the 1947 at £12,300. There was also a dessert wine, costing £9,200. The restaurant threw in the food for free.
They may have got their food free, but did that include desserts. There’s more details of it here on the BBC.
Technology Means It Would Be Easier to Leave the Euro Than It Was To Join
When I wrote the piece about Michael Spencer’s thoughts on the drachma, I didn’t think the whole thing through. I didn’t think about all the new notes that would need to be printed and the conversion of cash machines.
But this article sets it all out. It also contains this interesting paragraph.
“It also rather depends on how individual institutions adapted their systems to the original change-over to the euro,” says Lewis. “My guess is that many organisations in Greece might simply have put a converter around their existing systems, rather as some UK companies did when we went decimal in 1971 – we discovered in the run-up to the year 2000 that at least one major insurance company’s accounts were still running in pounds, shillings and pence!”
So we were still using £sd in 2000. I’ll also admit that in some of the systems I’ve programmed, where we displayed data in Iranian dates or Korean currency, what went on underneath wasn’t pretty. But it worked!
So how did I find the article. A friend told me that De La Rue were printing drachma notes. So I used Google and found that Greece would probably use its own security printer.
Although the De La Rue share price was up by one percent today.
Michael Spencer’s Thoughts on the Drachma and Taxation
Michael Spencer is the CEO of ICAP and someone whose business judgement I respect. He’s also a man with strong Suffolk connections, which is always a plus point.
An article with the headline of “Spencer ready for return of drachma”, sums up his view on what to do, if or when Greece falls out of the euro.
He s also very forthright on what would happen if the financial transaction tax is imposed on the City.
After reading the article though, I suspect it will never be levied, as everybody has too much to lose. Except of course countries like Dubai, who’d laugh all the way to the bank, if it was implemented in substantial parts of the world.
One thing I like about Mr. Spencer, is that his company does its bit for charity. Here’s their page.
If you can get a copy of the article, read it!
If you look at ICAP’s major competitors, they are either in London or based in the United States. Not one is based on German or French soil. So if the European Union brought in a unilateral transaction zone and the UK didn’t levy it, they’d raise precisely zilch. Would banks like Deutsche Bank do their business in Frankfurt, when they could do it cheaper in New York? Of course they would!
A Farce With A Cash Machine
On the 18th of October, I tried to draw £50 out of cash machine inside the Nationwide branch at Upper Street in Islington. I tried twice and this was in front of the nose of someone senior in the branch, who watched everything I did, as I complained to him about the slowness of the machine. In the end I got fed up, so I went and did my shopping and then got the money a few minutes later.
When I checked my statement, the next day, not £50, but £150 had been withdrawn from my account. As I was in Leeds that day, I reported it in their branch there.
It is now the 25th and I still haven’t had my money returned. Yesterday, I was virtually accused of doing something wrong, by the person in the branch. So I stormed out, vowing to move my account. I probably won’t as all I need is a simple money transfer system to pay bills.
But it does seem to be taking a long time to sort out a problem, that happened under the nose of one of the branch’s senior employees! The last tine this happened to me it was at an ATM owned by Santander. The money was put back in my account by the next day.
The sum involved is not everything to me, but I am a widow and to some in my circumstances, that £100 would be very important.
Zopa in the Sunday Times
Zopa is featured in an article in the Sunday Times today called “Become a Lender and Earn 15 %”.
Two statements about Zopa stand-out.
Zopa has provided £160m-worth of unsecured loans to consumers since it was launched in 2005 and accounts for more than 2% of such new lending.
If that is true, then they have become a significant player in the personal lending market. I checked with Zopa and they told me that it’s between one and two percent and sometimes up to the higher limit.
And.
Zopa said its default rate is 0.9% against an average 5% to 7% for high street banks.
I would go along with that as my default rate has not been at all high. In fact it’s significantly less than 0.9%.
The Zopa Login
Adnmittedly, I know the people at Zopa well, but is there a financial site, that has such a simple, foolproof and I think secure, login. All you need to remember is your e-mail address and password and know the answers to a set of personal questions, whose answers, most people would know about themselves.
So what would happen if you someone broke my login? They might find out how much I had invested, but they wouldn’t be able to withdraw any money without first setting up a link to their bank account and then authorising the link. Not something that is easily done without leaving a trail of evidence. I suspect too, that alarms would ring at Zopa.
Everybody, who designs a secure login could do no better, than build on the excellent work Zopa has done.
The Anonymous Widower 