New New Labour

[sasguru]

City might make money from hot air .

If you think everything done in the City is hot air you're not qualified to be a MD, since you don't understand the world well enough.
HTH

[AtW]

Are you making the claim that borrowing money is always a bad way to generate money?

Borrowing money to invest into something that will make money (or save them) is ok, but borrowing to finance current spending or tax cuts should be a no-no.

[AtW]

If you think everything done in the City is hot air you're not qualified to be a MD, since you don't understand the world well enough.

My main problem with the City is not that it does not make real stuff, that is inherent in finance, however they are not investing (as in it's not their purpose unlike say VCs in Silicon Valley, USA) into companies that make stuff in this country or support their expansion in foreign countries.

Case in point - over 2 years ago when I thought to get overdraft for my company just in case we get cashflow issue with new clients taking long time to pay the bank offered max of £8k and even so they wanted my personal directors guarantee which completely undermines Ltd point. For overdraft over £10k they expected me to have a house that can be used as security.

8 effing grand - we already had decent growing turnover by then, but ok I agreed paid hefty admin fee and next year they tried to charge again 3% even though we did not use overdraft, so I gave them a finger. No wonder desperate people go to shows like Dragons Den

[sasguru]

Case in point - over 2 years ago when I thought to get overdraft for my company just in case we get cashflow issue with new clients taking long time to pay the bank offered max of £8k and even so they wanted my personal directors guarantee which completely undermines Ltd point. For overdraft over £10k they expected me to have a house that can be used as security.

And what makes you think it's different in, say, Germany?
A German friend who has taken over his 70 year old mittelstand family co. reports exactly the same problems.

Plus, 2 years ago we were in the worst recession since the 30s.

Your example is spurious and proves nothing.

[AtW]

And what makes you think it's different in, say, Germany?

They are not exactly strong on banking are they?

It's certainly different in USA as far as tech companies are concerned, 15% CGT on long term assets also!

[sasguru]

They are not exactly strong on banking are they?

You need to learn logical thinking. You said the banks here don't support long-term investment. I'm saying they don't in Germany either.
What's your point? Stop flailing around like a wet haddock.

[AtW]

I'm saying they don't in Germany either.

But they do - they've kept manufacturing and it's one of the best in the world, how can you say they don't make long term decisions? On the other hand UK totally betrayed its past and this is likely to result in a very bleak future indeed.

[The Spartan]

Thing is due to the exchange rate you could argue that if we did have an enterprising manufacturing industry we'd be making lots of money exporting goods but the problem is materials would be very costly as well so it's a vicious circle either way.

[Arturo Bassick]

Thing is due to the exchange rate you could argue that if we did have an enterprising manufacturing industry we'd be making lots of money exporting goods but the problem is materials would be very costly as well so it's a vicious circle either way.

Not if your manufactured product is made from locally available resources.

Plan B* What can I manufacture from bone idle chavs and will there be a market for the product?

[AtW]

the problem is materials would be very costly

And how do countries like Germany, France and Japan handle this problem?

Well, it's not a problem really if you can turn a lump of iron into good quality car.