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Home reposessions are rising, and we’re all going to suffer...

We’ve all read the stories about rising house repossessions, as the people who over-stretched themselves to claw their way onto the property ladder ‘at any cost’ during the boom years suddenly realise that borrowing all that money to buy a property at a wildly inflated price probably wasn’t such a good idea after all. And it should come as no surprise to learn that around one in thirteen of repossessions over the past three months have involved Northern Rock customers, because the company’s ’strategy’ over the past decade has largely been based on lending huge sums of money to people without asking too many questions about whether they were able to pay it back. The Americans call this...

posted on: Aug 27, 2008 | author: Lance

How the UK economy works, part 1: The Bank of England...

Although most people have a rough idea of how the UK economy works (or, if you’re being cynical, doesn’t work), the functions of the various components and their relationships to each other can be quite elusive. We’ve covered some aspects of money on this site in the past (here, for example), but there’s more to the economy than money itself. In fact, arguably more important than money is the way in which that money is moved around the economic system of the UK. Over the next few articles I’m going to look at each of the main institutions involved in the movement and management of money in the UK. I’ll be looking at the Treasury, the FSA, the...

posted on: May 29, 2008 | author: Lance

Investor emotions part 1: Greed

“Working nine to five, what a way to make a living”, sang Dolly Parton. She was right, too, although today it’s more like “Working nine to six with a twenty minute lunch break, plus the commute, and probably an hour’s unpaid overtime on top and I never get any thanks and my blood pressure’s too high and my back’s killing me and… what a way to make a living.” Either way, working for other people is, on the whole, not the surest route to early retirement on a yacht anchored in the sky-blue waters of the Med. What are the alternatives? Well, you could start your own company (which is hard work), rob a bank (which is not...

posted on: Oct 15, 2007 | author: Alex