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LMS
07-Jan-09, 18:25
How do other orgers feel the 'Credit Crunch' is hitting Caithness?

For example -
Has it been blown out of proportion by the media?
We have seen Woolworth's closing and the obvious repercussions for their staff, but how are others unconnected with the retail trade, ie Dounreay, feeling about it?
Has our house prices being low compared to the rest of the country saved us?
Are we all doomed to a deep, dark recession?

I am just generally interested to get other opinions on the current financial climate. Thoughts please orgers!

Bad Manners
07-Jan-09, 19:26
How do other orgers feel the 'Credit Crunch' is hitting Caithness?

For example -
Has it been blown out of proportion by the media?
We have seen Woolworth's closing and the obvious repercussions for their staff, but how are others unconnected with the retail trade, ie Dounreay, feeling about it?
Has our house prices being low compared to the rest of the country saved us?
Are we all doomed to a deep, dark recession?

I am just generally interested to get other opinions on the current financial climate. Thoughts please orgers!

unless you have been asleep for the last six months prices have increased on almost everything many companies are struggling whilst not closed down like woolworth they are on a knife edge. There are bargains to be had (at the momment) but these won't be around for ever. hopefully we can weather the storm but be prepared for quite a few months of the same

ShelleyCowie
07-Jan-09, 20:12
I may be lucky right now and dont want to count the chickend before they hatch (or was it hens) But so far me and my partner are finding it ok! Last year was a bit hard as we had a new baby to buy for so saving as much as we could, but now that we have worked into a routine of money we are fine.

I hope no more shops or things closes here! Same as Dounreay and BT. I know not many jobs are very safe at BT right now as many people will have heard on the news and that! If they close...we may be forced to move away! :( I dont want to go! I love it here! And my family is here, my partners other 2 sons are here too!

But i suppose the whole country is in trouble aint it! :~(

Penelope Pitstop
07-Jan-09, 20:34
Has the credit crunch reached Caithness? Is that a serious question? Wakey, wakey.

purplelady
07-Jan-09, 20:51
Well have to be honest i have not beem affected by it yet maybe an one of lucky ones still have a job too x

Gizmo
07-Jan-09, 21:32
Yes it's having an effect in Caithness, certainly job wise, there is next to nothing available, take a look on the Job Centre website and there are 5 jobs for Caithness, 1 for Wick, 2 for Thurso and 2 for Latheron, i have never seen it so bad in Caithness before, and i can only see it getting worse.

daviddd
07-Jan-09, 21:40
I'm not sure that prices have risen over the past few months?? Fuel is much cheaper and everything looks the same to me, but clearly unemployment is rising quickly and that will have a considerable effect on all local economies, not just Caithness.

Torvaig
07-Jan-09, 21:52
The credit crunch has not been blown out of proportion.....its a wake up call! Instead of living in cloud cuckoo land believing we "deserve" the standard of living, good or bad, depending on how you feel about how we live.

Many, many people have been living outwith their means for so long now that they treat it as the norm and as their right. No longer is anyone proud of not having any debt or managing to live within their means that they think they are hard done by when the chickens come home to roost.

And none worse than the powers that be who make the major decisions for our way of life.

For far too long now bankers etc., who give credit to those who cannot afford it have been taking advantage of weak willed people and lining their pockets with the adage of "live for today, to hell with tomorrow".

For far too long figures have been massaged, boxes ticked and the powers that be convinced (?) that we live in affluent times and they certainly had us fooled.

Time to smell the roses.....

theone
07-Jan-09, 22:00
The credit crunch was not responsible for the rise in prices seen last year, this was largely down to fuel prices - totally unrelated. If anything the credit crunch has brought prices down as the fuel price dropped with shrinking economies and fears of low growth.

The credit crunch is just that - it affects credit. It affects people and businesses wanting to borrow money. First time homebuyers will be affected, and those wanting to move might have a change of heart. People will find it harder or more expensive to borrow for new cars etc.

To me Woolworths is the most visible loss to Caithness. This was no doubt sped up by the crunch but the fact is Woolworths has been losing money for years and it was only a matter of time before something happened.

There will be job losses if businesses with debt have to shutdown, or in the building trades for example where there will be less work, but for me I haven't noticed much difference.

Kirdon
07-Jan-09, 22:03
The credit crunch has not been blown out of proportion.....its a wake up call! Instead of living in cloud cuckoo land believing we "deserve" the standard of living, good or bad, depending on how you feel about how we live.

Many, many people have been living outwith their means for so long now that they treat it as the norm and as their right. No longer is anyone proud of not having any debt or managing to live within their means that they think they are hard done by when the chickens come home to roost.

And none worse than the powers that be who make the major decisions for our way of life.

For far too long now bankers etc., who give credit to those who cannot afford it have been taking advantage of weak willed people and lining their pockets with the adage of "live for today, to hell with tomorrow".

For far too long figures have been massaged, boxes ticked and the powers that be convinced (?) that we live in affluent times and they certainly had us fooled.

Time to smell the roses.....

well said, personal opinion is that there has been to much credit given out and now nobody can pay it all back, to many people living beyond their means with fancy houses and fancy cars, and no this is not sour grapes as i live resonably well within my means.

trix
07-Jan-09, 22:10
til be honest 'e credit crunch hesna affected me one iota...

in fact, ma rent comes doon every year :cool:

i really feel for those who are affected, it must be such a worry but if i hedna read aboot'ed or heard fowlk speakin aboot'ed than i widna hev kent anythin aboot'ed.

Torvaig
07-Jan-09, 22:11
well said, personal opinion is that there has been to much credit given out and now nobody can pay it all back, to many people living beyond their means with fancy houses and fancy cars, and no this is not sour grapes as i live resonably well within my means.

There is a great shouting nowadays about controlling the banks and the other financial institutions which is right and necessary. For far too long they were self-regulating which was the worst decision ever made in recent banking history. And it shows.....

The ones who made a lot of money out of the above just jumped on a bandwagon that was advertising free travel.....

Boboowest
07-Jan-09, 23:26
I read with interest the comments regarding the credit crunch. In the short term it is the business that is most affected. One example - Most companies rely on credit terms from suppliers to help fund their business. Therefore you buy supplies and pay for them say 30, 60 or even 90 day later. This allows a company to either manufacture goods and / or resell them before they have to pay for them, thus providing good cash flow and hopefully profit. In these times of "credit crunch" credit insurance companies reduce credit cover forcing suppliers to reduce or even completely remove these terms, thus removing positive cash flow. A perfectly profitable company can then suffer greatly or even go out of business completely due to a lack of cash. In this situation cash becomes far more important than profit.

Another one. If a company manufactures / is based in the UK, imports all their raw materials / goods and then sells to UK customers. This is a nightmare situation. During a credit crunch the pound becomes weak and is currently some 33% lower against the Euro and Dollar. Therefore the raw materials are 33% more expensive. Remember we have lost the majority of the UK manufacturing base so it is difficult to buy here. If we are in a credit crunch then you can be sure the customer cannot accept an increase. So the manufacturer suffers, profit and cash disappears and they risk going out of business (and many have already).

For those who think they are not affected - you will be. Example - Oil has fallen to $40 / barrel so we are all well chuffed because petrol is cheap. What are the oil companies thinking about it? They will not continue to take it out of the ground for $40. Production will be cut and supply restricted creating a shortage. Then oil will rocket in price to much higher levels than ever seen previously.

I could go on but I won’t bore you any longer.

Angel
07-Jan-09, 23:40
The credit crunch hasn't started yet... imagine a credit dam, filling up for years. Now the dam is found to be faulty, governments have started emergency repairs but the dam is starting to leak... Caithness is only damp at the moment while the cities are issueing wellies... build your financial arks now as the flood is expected in the summer...

I can swim can you!

Angel

sweetpea
08-Jan-09, 00:18
It would be good to have figures of how many people are losing their jobs here, we all hear about Woolies because it's a big news story but I'd bet many businesses are laying of one or two here and there and reducing hours and stuff, getting rid of trainees or not taking more on.

scorrie
08-Jan-09, 00:53
til be honest 'e credit crunch hesna affected me one iota...

in fact, ma rent comes doon every year :cool:

i really feel for those who are affected, it must be such a worry but if i hedna read aboot'ed or heard fowlk speakin aboot'ed than i widna hev kent anythin aboot'ed.

Have you NO savings then trix? If you have any, the crunch has torn the erse out of the rate of interest they are gathering.

trix
08-Jan-09, 01:02
Have you NO savings then trix?

no much no, no much an asset til anyone am afraid...most o' what i hev is hidden under ma mattress :Razz

i understand that i may be affected in 'e long run somehow....but at 'iss point in time im prity secure.

iv hed 2 excellent payrises in 'e last year, ma job is secure for at least 3 years. no planin buyin a hoose anytime soon...get ma denners aboot ma pals hooses an ma mithers half 'e time so i da even spend much on messages :lol:
am hardly in as i work most o' 'e time so i da spend much on electricity an ma rent is comin doon every year.

infact, i can honestly say iv never bin so weel off...or happy in ma life ;)

2little2late
08-Jan-09, 01:47
How do other orgers feel the 'Credit Crunch' is hitting Caithness?

Credit Crunch! Is this a new cereal? [lol] [lol]

Gizmo
08-Jan-09, 02:33
Credit Crunch! Is this a new cereal? [lol] [lol]

Aye...soon enough people will be so broke that all they'll have left to eat are all their cancelled credit cards :)

Aaldtimer
08-Jan-09, 04:20
OK Trix,..."get ma denners aboot ma pals hooses an ma mithers half 'e time so i da even spend much on messages :lol:
am hardly in as i work most o' 'e time so i da spend much on electricity an ma rent is comin doon every year."...

How long do you think you can sponge off your friends and your Mum in these troubled times?
How come your rent is coming down every year? :confused

Torvaig
08-Jan-09, 11:29
I read with interest the comments regarding the credit crunch. In the short term it is the business that is most affected. One example - Most companies rely on credit terms from suppliers to help fund their business.
Why should they rely on credit to fund their business? If it is a good enough business it should have capital to buy raw goods etc., and pay wages. The problem with a lot of businesses is that the boss often has a large salary, big car, big house, expensive holidays along with his sales people, adviser etc. How many companies send their minions off on paid holidays as a reward for their sales? A lot of them, I can assure you, many of which the public never hear about. That is all paid by the ordinary punter who has probably borrowed money to pay for the goods in the first place. Common sense tells us that it cannot go on! You cannot keep borrowing "loadsa money" on one product!
THIS STATE OF AFFAIRS IS ALL BASED ON WHAT FINANCIAL ADVISERS SAY; FINANCIAL ADVISERS WHO ARE REAPING THE REWARDS BEFORE THE BUSINESS IS.
Don't get me wrong, there are many responsible businesses out there who run things on a shoestring. It is the irresponsible ones who have brought this on. In a way, a business is just like a family and as we all know there are many families living on credit cards etc., and have no way of paying it all back. Having a large income does not guarantee that you will be well off; it's how you use that income and that goes for the businesses too and I feel heart sorry for those families and businesses who are suffering because of the greed of others.


Therefore you buy supplies and pay for them say 30, 60 or even 90 day later. This allows a company to either manufacture goods and / or resell them before they have to pay for them, thus providing good cash flow and hopefully profit.

In these times of "credit crunch" credit insurance companies reduce credit cover forcing suppliers to reduce or even completely remove these terms, thus removing positive cash flow. A perfectly profitable company can then suffer greatly or even go out of business completely due to a lack of cash. In this situation cash becomes far more important than profit.

Of course cash is important and what I am suggesting is that if the businesses and private individuals work within their means instead of on potential income, they would be far better off. Look about you, look at the standard of living, look at the things we claim is essential for life; it's a fallacy! We have fallen into the trap of expecting life to be full of luxuries and we look on them as essentials. Even today, as many people and businesses have to pull in their belts, many do not know how to cope without credit.


Another one. If a company manufactures / is based in the UK, imports all their raw materials / goods and then sells to UK customers. This is a nightmare situation. During a credit crunch the pound becomes weak and is currently some 33% lower against the Euro and Dollar. Therefore the raw materials are 33% more expensive. Remember we have lost the majority of the UK manufacturing base so it is difficult to buy here. If we are in a credit crunch then you can be sure the customer cannot accept an increase. So the manufacturer suffers, profit and cash disappears and they risk going out of business (and many have already).

For those who think they are not affected - you will be. Example - Oil has fallen to $40 / barrel so we are all well chuffed because petrol is cheap. What are the oil companies thinking about it? They will not continue to take it out of the ground for $40. Production will be cut and supply restricted creating a shortage. Then oil will rocket in price to much higher levels than ever seen previously.

I could go on but I won’t bore you any longer.

It's not boring; the more this is talked about the better. Time to be honest, time to open many, many eyes....

Penelope Pitstop
08-Jan-09, 12:04
I read with interest the comments regarding the credit crunch. In the short term it is the business that is most affected. One example - Most companies rely on credit terms from suppliers to help fund their business. Therefore you buy supplies and pay for them say 30, 60 or even 90 day later. This allows a company to either manufacture goods and / or resell them before they have to pay for them, thus providing good cash flow and hopefully profit. In these times of "credit crunch" credit insurance companies reduce credit cover forcing suppliers to reduce or even completely remove these terms, thus removing positive cash flow. A perfectly profitable company can then suffer greatly or even go out of business completely due to a lack of cash. In this situation cash becomes far more important than profit.

Another one. If a company manufactures / is based in the UK, imports all their raw materials / goods and then sells to UK customers. This is a nightmare situation. During a credit crunch the pound becomes weak and is currently some 33% lower against the Euro and Dollar. Therefore the raw materials are 33% more expensive. Remember we have lost the majority of the UK manufacturing base so it is difficult to buy here. If we are in a credit crunch then you can be sure the customer cannot accept an increase. So the manufacturer suffers, profit and cash disappears and they risk going out of business (and many have already).

For those who think they are not affected - you will be. Example - Oil has fallen to $40 / barrel so we are all well chuffed because petrol is cheap. What are the oil companies thinking about it? They will not continue to take it out of the ground for $40. Production will be cut and supply restricted creating a shortage. Then oil will rocket in price to much higher levels than ever seen previously.

I could go on but I won’t bore you any longer.

Your spot on boboowest.

Some folk may not notice much difference yet....but make no mistake they WILL.

Job losses are on the way, quite a few have happened already. Firms aren't winning the amount contracts that they once did (they're just not there to be had) Larger companies just aren't able to secure funding to expand their product or business activities...what else can they do but lay personnel off....very sad times indeed.

Bazeye
08-Jan-09, 15:33
How many people are losing their jobs because of Woolies, 30000 nationwide. ? From 1992 until 1995 10000 people lost their jobs in Barrow, a town of 65000 and yet this didnt make the news, I wonder why? Oh and incidentally the storeman at work has had to increase the price of his 'imported' tobacco from £5 25 to £5 50 per 50g packet. Guess Ill have to cut down.

theone
08-Jan-09, 16:35
Oh and incidentally the storeman at work has had to increase the price of his 'imported' tobacco from £5 25 to £5 50 per 50g packet. Guess Ill have to cut down.

Admitting to buying smuggled tobacco, which is often brought into the country by organised crime gangs, on a website part run by a local councillor who has your contact details - probably not the best idea.

cazmanian_minx
08-Jan-09, 16:40
I'm seeing it - one of the wholesalers I buy from imports most of their stock from China, Hong Kong and Taiwan, where the factories prefer to be paid in US dollars. One item I used to buy regularly from them increased from £19.50 per 100 to £44 per 100 overnight. When I rang up to ask if it was a mistake with the website, they said no, it was the collapse of the £ against the $ plus the increased fuel costs to transport it from the Far East.

Then they admitted that they hadn't raised the price on that item for nearly a decade and had actually been selling it at a loss for the past two years and not noticed...!

Anji
08-Jan-09, 16:47
I'm seeing it - one of the wholesalers I buy from imports most of their stock from China, Hong Kong and Taiwan, where the factories prefer to be paid in US dollars. One item I used to buy regularly from them increased from £19.50 per 100 to £44 per 100 overnight. When I rang up to ask if it was a mistake with the website, they said no, it was the collapse of the £ against the $ plus the increased fuel costs to transport it from the Far East.

Then they admitted that they hadn't raised the price on that item for nearly a decade and had actually been selling it at a loss for the past two years and not noticed...!

So now, instead of being annoyed about the price going up, are you feeling pleased about the bargain you've been getting for the past two years?

Bazeye
08-Jan-09, 17:08
Admitting to buying smuggled tobacco, which is often brought into the country by organised crime gangs, on a website part run by a local councillor who has your contact details - probably not the best idea.

Hes not part of an organised crime gang, hes doing it to supplement the minimum wage hes on. If he didnt do it he said hed be only slightly worse off financially by not working.

Penelope Pitstop
08-Jan-09, 17:15
Hes not part of an organised crime gang, hes doing it to supplement the minimum wage hes on. If he didnt do it he said hed be only slightly worse off financially by not working.

Ah well, don't get me started .......that's another thread I feel coming on......:lol:

At least he has a job....lots of folk ain't that lucky:confused

Bad Manners
08-Jan-09, 17:30
How many people are losing their jobs because of Woolies, 30000 nationwide. ? From 1992 until 1995 10000 people lost their jobs in Barrow, a town of 65000 and yet this didnt make the news, I wonder why? Oh and incidentally the storeman at work has had to increase the price of his 'imported' tobacco from £5 25 to £5 50 per 50g packet. Guess Ill have to cut down.
so you are admitting to being a tax dodger and abetting a smuggling ring.
probably not the wisest move you have done. As a side point it is presisley these action that cause shop keepers to close when people buy things on the black market you hammer another nail in the honest shopkeeper's coffin.

theone
08-Jan-09, 19:01
Hes not part of an organised crime gang, hes doing it to supplement the minimum wage hes on. If he didnt do it he said hed be only slightly worse off financially by not working.

He might not be, but the people he gets the tobacco from probably are.

It's the same as drugs. The guy on the street selling the £10 bag isn't the problem, it's the gangsters further up the chain.

People cheating tax or customs duties are no better than benefit cheats.

Bazeye
08-Jan-09, 19:46
He might not be, but the people he gets the tobacco from probably are.

It's the same as drugs. The guy on the street selling the £10 bag isn't the problem, it's the gangsters further up the chain.

People cheating tax or customs duties are no better than benefit cheats.

The people he gets it off probably arent gangsters/drug dealers because theyre not. They bring it back from their holidays which in turn, when sold pays for their next holiday, Youre assuming an awful lot about people you dont know.

ShelleyCowie
08-Jan-09, 20:02
Could have sworn this thread was credit crunch? No tax dodgers or whatever u are calling them! Let them buy tobacco cheap if they want! Their decision!

Bazeye
08-Jan-09, 20:14
Could have sworn this thread was credit crunch? No tax dodgers or whatever u are calling them! Let them buy tobacco cheap if they want! Their decision!

ShelleyBain, the best thing about this little diversion in the thread is that I dont even smoke. Oh how I do enjoy my little 'wind ups'.:lol::lol:

trix
08-Jan-09, 20:36
OK Trix,..."get ma denners aboot ma pals hooses an ma mithers half 'e time so i da even spend much on messages
am hardly in as i work most o' 'e time so i da spend much on electricity an ma rent is comin doon every year."...

How long do you think you can sponge off your friends and your Mum in these troubled times?
How come your rent is coming down every year?

who's spongin? less o' 'e lip ayre aaldtimer....[evil]

im so popular that i get invited til ma mithers an faithers at least once a week, i go til ma nanas once a week an ma granys once a week - thro invitation!! they all love me man! i clean a manies hoose twice a week an when i want i hev ma tea ayre too - depends on what he's hevin :Razz

ma pals invite me to tea as i invite them.....an at 'e weekends i hev ma denner at ma work....

il cum til yers for ma tea if ye want auldman, 'e crack'l be brilliant. il take ma own beer an fags ;)

as for ma rent...i da ken but it dis. anyone who shares ma housin association will be 'e same....

ShelleyCowie
08-Jan-09, 21:14
ShelleyBain, the best thing about this little diversion in the thread is that I dont even smoke. Oh how I do enjoy my little 'wind ups'.:lol::lol:

Lol i smoke but just buy oot the shops! Lol!

Torvaig
08-Jan-09, 21:56
I'm seeing it - one of the wholesalers I buy from imports most of their stock from China, Hong Kong and Taiwan, where the factories prefer to be paid in US dollars. One item I used to buy regularly from them increased from £19.50 per 100 to £44 per 100 overnight. When I rang up to ask if it was a mistake with the website, they said no, it was the collapse of the £ against the $ plus the increased fuel costs to transport it from the Far East.

Then they admitted that they hadn't raised the price on that item for nearly a decade and had actually been selling it at a loss for the past two years and not noticed...!

CM this is what I have been speaking about. Companies who have no idea of what is going on in their own business. Now, at a crucial financial time for all, you suddenly have to face the price hike to pay for their negligence. If it had been going up gradually when it should have, you wouldn't have been posting this today; you would have accepted the increases without question....all part of the business....

Moira
08-Jan-09, 22:17
[/quote=Boboowest;479656]I read with interest the comments regarding the credit crunch. In the short term it is the business that is most affected. One example - Most companies rely on credit terms from suppliers to help fund their business.
Why should they rely on credit to fund their business? If it is a good enough business it should have capital to buy raw goods etc., and pay wages. ....

I did intend to add my thoughts to this thread but I can't cope with the Red Writing and the SHOUTING! :D

Torvaig
08-Jan-09, 23:47
I did intend to add my thoughts to this thread but I can't cope with the Red Writing and the SHOUTING! :D

Sorry Moira, I used the red when constructing the post for my own convenience and just forgot to change it back when I finished my rant; I had a full head of steam on at the time! :lol:

And sometimes you have to shout to make yourself heard.....

Aaldtimer
09-Jan-09, 15:54
who's spongin? less o' 'e lip ayre aaldtimer....

im so popular that i get invited til ma mithers an faithers at least once a week, i go til ma nanas once a week an ma granys once a week - thro invitation!! they all love me man! i clean a manies hoose twice a week an when i want i hev ma tea ayre too - depends on what he's hevin
ma pals invite me to tea as i invite them.....an at 'e weekends i hev ma denner at ma work....

il cum til yers for ma tea if ye want auldman, 'e crack'l be brilliant. il take ma own beer an fags

as for ma rent...i da ken but it dis. anyone who shares ma housin association will be 'e same....

My Trix, it must be grand to be so popular! LOL:cool:
My OH says ye'd be welcome to share our Beans on Toast onnytime! But tak 'e fags an' beer wi' ye!;)
Still a bit confused wi' yer shrinking rent tho', they put mine up by £70 a month no long ago. :eek:

AfternoonDelight
09-Jan-09, 18:04
It would be good to have figures of how many people are losing their jobs here, we all hear about Woolies because it's a big news story but I'd bet many businesses are laying of one or two here and there and reducing hours and stuff, getting rid of trainees or not taking more on.

Caithness Creels? Layoffs with M M Millers?

percy toboggan
09-Jan-09, 18:20
Public acclamation for Torvaig and Kirdon here . The former especially told it like it is.
Too many nincompoops have seen the price of their house rise and believed it was money for nowt. They did not factor in history, or any common sense at all...simply rushed out and borrowed more and more to buy fancy cars or (ultimate folly) holidays.

I think any individual who actually borrows money against his house for a holiday is the archetypal twerp. Frankly , twerps deserve all they get but what is happening now is prudent people like ourselves who save more than we spend on fripperies each week are being hammered by low savings rates.

I never bought into the great housing bubble myth...seeing it rather as a latterday version of the East India bubble which we studied at school (you don't need to know much more than all bubbles go pop eventually). That's three bubbles in one sentence. Sorry, now it's four in close proximity...which might be too much even for Mike Jackson.
Rambling now.....

Hurrah for twerp-busters like Torvaig !

trix
09-Jan-09, 18:40
Still a bit confused wi' yer shrinking rent tho', they put mine up by £70 a month no long ago.

am real sorry aboot 'at aaldtimer...sad state o' affairs :(

i got a letter aboot a year ago sayin that i wis 40 kwid in credit an that ma rent wis comin doon....when i phoned til ask for for ma credit back an reduce ma payments i asked 'e wifie aboot 'e rent comin doon an she says its right enough! it wil come doon every year for 'e next 3 years!

.....must be yon beeg cauldron ama stirrin eh ;)

tell 'e missus cheers for 'e invite an i mite choost had her til'ed! :Razz

Boboowest
09-Jan-09, 22:47
[quote=Boboowest;479656]I read with interest the comments regarding the credit crunch. In the short term it is the business that is most affected. One example - Most companies rely on credit terms from suppliers to help fund their business.
Why should they rely on credit to fund their business? If it is a good enough business it should have capital to buy raw goods etc., and pay wages. The problem with a lot of businesses is that the boss often has a large salary, big car, big house, expensive holidays along with his sales people, adviser etc. How many companies send their minions off on paid holidays as a reward for their sales? A lot of them, I can assure you, many of which the public never hear about. That is all paid by the ordinary punter who has probably borrowed money to pay for the goods in the first place. Common sense tells us that it cannot go on! You cannot keep borrowing "loadsa money" on one product!
THIS STATE OF AFFAIRS IS ALL BASED ON WHAT FINANCIAL ADVISERS SAY; FINANCIAL ADVISERS WHO ARE REAPING THE REWARDS BEFORE THE BUSINESS IS.
Don't get me wrong, there are many responsible businesses out there who run things on a shoestring. It is the irresponsible ones who have brought this on. In a way, a business is just like a family and as we all know there are many families living on credit cards etc., and have no way of paying it all back. Having a large income does not guarantee that you will be well off; it's how you use that income and that goes for the businesses too and I feel heart sorry for those families and businesses who are suffering because of the greed of others.
Therefore you buy supplies and pay for them say 30, 60 or even 90 day later. This allows a company to either manufacture goods and / or resell them before they have to pay for them, thus providing good cash flow and hopefully profit.
In these times of "credit crunch" credit insurance companies reduce credit cover forcing suppliers to reduce or even completely remove these terms, thus removing positive cash flow. A perfectly profitable company can then suffer greatly or even go out of business completely due to a lack of cash. In this situation cash becomes far more important than profit. Of course cash is important and what I am suggesting is that if the businesses and private individuals work within their means instead of on potential income, they would be far better off. Look about you, look at the standard of living, look at the things we claim is essential for life; it's a fallacy! We have fallen into the trap of expecting life to be full of luxuries and we look on them as essentials. Even today, as many people and businesses have to pull in their belts, many do not know how to cope without credit.
Another one. If a company manufactures / is based in the UK, imports all their raw materials / goods and then sells to UK customers. This is a nightmare situation. During a credit crunch the pound becomes weak and is currently some 33% lower against the Euro and Dollar. Therefore the raw materials are 33% more expensive. Remember we have lost the majority of the UK manufacturing base so it is difficult to buy here. If we are in a credit crunch then you can be sure the customer cannot accept an increase. So the manufacturer suffers, profit and cash disappears and they risk going out of business (and many have already).
For those who think they are not affected - you will be. Example - Oil has fallen to $40 / barrel so we are all well chuffed because petrol is cheap. What are the oil companies thinking about it? They will not continue to take it out of the ground for $40. Production will be cut and supply restricted creating a shortage. Then oil will rocket in price to much higher levels than ever seen previously.
I could go on but I won’t bore you any longer. It's not boring; the more this is talked about the better. Time to be honest, time to open many, many eyes....

All points taken on board and I agree with the much of what you say. however, you would be shocked by the amount of Company Directors of private companies who are not currently drawing their salary to ensure their staff are paid. Also there are many who never take any hoildays at all. This being said, if a person builds up a sucessful business and provides people with employment then I would not grudge them a couple of weeks in the sun or a nice car?
It is difficult for a company to operate without credit terms from its suppliers. Many customers would not deal with a company who will not offer credit terms. In an idea world a company would be cash rich and could afford to fund it - in reality most are not, especially now.

Torvaig
09-Jan-09, 23:42
[quote=Torvaig;479801]

All points taken on board and I agree with the much of what you say. however, you would be shocked by the amount of Company Directors of private companies who are not currently drawing their salary to ensure their staff are paid. Also there are many who never take any hoildays at all. This being said, if a person builds up a sucessful business and provides people with employment then I would not grudge them a couple of weeks in the sun or a nice car?
It is difficult for a company to operate without credit terms from its suppliers. Many customers would not deal with a company who will not offer credit terms. In an idea world a company would be cash rich and could afford to fund it - in reality most are not, especially now.

I acknowledge what you are saying and agree that there are many good business people out there who take responsibility for their employees and I don't grudge them their rightful perks; its the irresponsible ones who incited my rant! :)

sweetpea
10-Jan-09, 02:10
I've being giving it some thought and concluded that the credit crunch hasn't really affected me much. I owe nothing and although I have some small savings I'm worried about I'm not too worried. What I object to is carrying all the people who lived up to their eyeballs in credit.

theone
10-Jan-09, 03:50
What I object to is carrying all the people who lived up to their eyeballs in credit.

You're right.

I do too. We're encouraged to feel sorry for the "victims" of the credit cunch. I'm lucky in the sense I have a well paid job but I know many people or couples with a mortgage twice the size of mine when they're earning minimum wage.

Wake up folks, your nice house in west gills is lovely but what used to be a case of "fur coat and no knickers" will soon be a case of "no fur coat".

Believe it or not I actually know someone who got a big (30-40%), discount on their council property, took the largest mortgage they could against their "equity" and then spent the remainder on things including alloy wheels on a hence crashed (3rd party covered) car.

I have a mortgage. It is a necessity. I have credit cards. Balances clear but handy for big purchases. I have little sympathy for those living like kings but earning tuppence.

Aaldtimer
10-Jan-09, 04:39
am real sorry aboot 'at aaldtimer...sad state o' affairs

i got a letter aboot a year ago sayin that i wis 40 kwid in credit an that ma rent wis comin doon....when i phoned til ask for for ma credit back an reduce ma payments i asked 'e wifie aboot 'e rent comin doon an she says its right enough! it wil come doon every year for 'e next 3 years!

.....must be yon beeg cauldron ama stirrin eh ;)

tell 'e missus cheers for 'e invite an i mite choost had her til'ed! :Razz

Can ye mibbe jist stir a spell or two into 'e big pot fir us ?
Ye'll hiv til wait fir yer next visit tae yer hame toon to enjoy the beans on toast. Can ye afford the bus fare or 'e petrol?
Onnyweys ye'll be very wellcome!;)

Anji
10-Jan-09, 15:10
I've being giving it some thought and concluded that the credit crunch hasn't really affected me much. I owe nothing and although I have some small savings I'm worried about I'm not too worried. What I object to is carrying all the people who lived up to their eyeballs in credit.

Ditto.
I have a mortgage, but I've never owned a credit card. Throughout life, if I wanted something, I'd save up for it. If I couldn't save up for it, then I didn't really need it. It bugs me no end that people who have borrowed up to the hilt are described as 'victims'.